Carlo Ancelotti, now in charge of Brazil’s national soccer team, has been handed a one-year sentence by the Provincial Court of Madrid for tax fraud committed back in 2014, when he was managing Real Madrid for the first time. Along with the sentence, the court imposed a fine of €386,361.93 and banned him from receiving any public subsidies or tax benefits for the next three years.
The conviction was announced shortly after Ancelotti took over the Brazilian national team in May 2025, following the end of his second run with Real Madrid. The CBF had prioritized his appointment, calling him the right figure to lead a new chapter for the Seleção.
Fraud confirmed and fine imposed
Prosecutors accused Ancelotti of hiding a total of €1,062,079 in income between 2014 and 2015. The case centered on undeclared earnings related to image rights, which had been routed through foreign companies. This week’s ruling confirmed the offense in the 2014 tax year, but cleared him of wrongdoing in 2015.
In addition to the sentence and the fine, the court found Ancelotti civilly liable and ordered him to pay the Spanish Treasury the full amount corresponding to the proven fraud. That amount stands at €386,361.93, according to reports from EFE.
No jail time, but the verdict still carries weight
Under Spanish law, prison terms of less than two years for non-violent crimes are rarely served behind bars, especially for those without prior convictions. That means Ancelotti won’t face actual jail time. Still, the legal mark on his record is there, and the implications go beyond courtrooms.
During the hearing held in April, Ancelotti said he never intended to deceive Spanish tax authorities and explained that he had simply followed the guidance of Real Madrid and his legal advisors. He also stressed that the debt was fully paid by December 2021 and asked for leniency in the ruling.
Spain’s tax system has a track record with celebrities
Spain’s tax authorities have shown little patience when it comes to big names in sports and entertainment. Neymar, Lionel Messi, Cristiano Ronaldo and Shakira are just a few of the global figures who have faced similar accusations of financial misconduct in the country.
Most of these cases revolve around image rights deals set up through offshore entities, questionable tax planning, and claims of having relied on poor advice. Still, Spanish courts have taken a firm approach. Saying you didn’t know has not been enough to avoid being held accountable.
Ancelotti’s case followed that same pattern. Even though he repaid what was owed well before the trial concluded, the court still found him guilty of failing to report income earned in 2014.