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Shakira, the Colombian pop star, has agreed to pay the Spanish government 22 million euros.
This sum was said to be owed in tax on her income while she was in Spain.
The original amount was for 14.5 million euros.
By paying the enormous sum, plus an extra fine, the singer avoided spending eight years in a Spanish prison.
Government lawyers said the star had lived in Barcelona for more than six months a year between 2012-2014, when in a long-term relationship with Barcelona footballer Gerard Piqué.
The government said she was required to pay Spanish income tax.
Shakira's team disagreed and said her main home was in the Bahamas during that period.
At first, the 46 year old singer had been keen to show she wasn't guilty in court - she felt the Spanish authorities simply wanted her money.
"It's clear they wanted to go after that money, no matter what," she said.
However, after years of fighting, she realised her own health and her children were more important.
"I have made the decision to finally resolve this matter with the best interest of my kids," she said.
The artist now lives in Miami with the boys, whose father is Piqué, but in Spain, many other celebrities have been caught for avoiding tax.
Well-known footballers Cristiano Ronaldo and Lionel Messi have had to come to similar financial agreements.
The Spanish government's happy for rich foreigners to live in Spain, but only if they pay up.
