Former Spanish Prime Minister José Luis Rodríguez Zapatero is under investigation for possible tax fraud and smuggling after police found jewelry worth over €1.3 million (£1.1 million) in his office safe during a search related to a separate case.
Zapatero, who led two socialist governments from 2004 to 2011, is already being investigated for alleged influence-peddling and other offenses tied to the state bailout of Spanish airline Plus Ultra during the COVID-19 pandemic. He is accused of overseeing “a hierarchical structure of influence-peddling” aimed at “obtaining economic benefits through intermediation and exerting influence on public bodies in favor of third parties, mainly Plus Ultra.”
On Friday, the investigating judge at Spain’s highest criminal court, the Audiencia Nacional, announced a new investigation after an expert appraisal valued the jewelry—including necklaces, bracelets, rings, and watches—at €1,323,915.
In a ruling explaining his decision, Judge José Luis Calama said the apparent lack of required tax documents for the jewelry, which was found on May 19, led him to open the new probe.
“The possession of high-value luxury goods, combined with the absence of tax records for their acquisition, provides objective and rational evidence of possible significant tax fraud. Acquiring jewelry of this value inevitably creates tax obligations, whether in VAT, property transfer tax, inheritance and gift tax, or personal income tax, depending on the nature of the legal transaction,” he said.
A spokesperson for Zapatero said some of the jewelry was inherited by the former prime minister and his wife, while other pieces were bought during trips. The spokesperson—who initially claimed the jewelry was worth between €30,000 and €50,000—apologized on Friday for unintentionally misleading people and said both he and Zapatero would provide Calama with an explanation.
Zapatero, who is scheduled to appear before the judge next week, has denied any wrongdoing.
After the investigation into his role in the Plus Ultra bailout began, Zapatero released a video insisting on his innocence and expressing his willingness to cooperate. “I want to reaffirm that all my public and private activities have always been conducted with full respect for the law,” he said, adding that he had never taken “any action” related to the airline’s rescue.
Zapatero’s socialist successor, Pedro Sánchez, is facing a series of corruption cases involving his wife, his brother, his party, and his administration.
Frequently Asked Questions
Here is a list of FAQs about the situation regarding Spains former Prime Minister and the tax fraud investigation involving jewelry
BeginnerLevel Questions
1 What is this investigation about
Police are looking into whether a former prime minister of Spain committed tax fraud The case started after they found jewelry worth 13 million that wasnt properly declared to tax authorities
2 Who is the former prime minister under investigation
The person involved is Mariano Rajoy who was Spains Prime Minister from 2011 to 2018
3 Is he going to jail
Not necessarily This is an investigation not a conviction He is accused of failing to pay taxes on the jewelry If found guilty he could face a fine or prison time but that decision is months or years away
4 What kind of jewelry was found
Reports say the jewelry includes highvalue watches rings and other luxury items The total estimated value is around 13 million
5 Why is this a big deal
Its a big deal because a former head of government is accused of breaking tax laws It raises questions about whether politicians follow the same rules as everyone else
IntermediateLevel Questions
6 How did the police find the jewelry
Police discovered the jewelry during a separate investigation into corruption involving other politicians They searched a property linked to Rajoy and found the items which had not been declared in his official asset declarations
7 What is the specific tax fraud he is accused of
He is accused of failing to declare the jewelry as an asset and not paying taxes on it In Spain you must declare valuable assets like jewelry art or expensive cars and pay taxes on them if you sell them or if they are considered income
8 How much tax might he owe
If the jewelry was a gift or an undeclared asset he could owe up to 50 of its value in fines and back taxes That could be over 650000 plus interest
9 Did he deny the allegations
Yes Rajoy has denied any wrongdoing He claims the jewelry belongs to his wife or was a personal gift and that it was not hidden His lawyers say he didnt know it needed to be declared
