Spanish PM asks former King Juan Carlos I to explain tax fraud scandal

Prime Minister Pedro Sánchez on Tuesday asked former King Juan Carlos I to shed full light on an alleged tax fraud scandal affecting the Spanish monarch.

The 84-year-old Juan Carlos should give a clear explanation to all Spanish citizens about the “disappointing” information concerning events attributed to him in the past, Sánchez has said, EURACTIV’s partner EFE reported.

On 2 March, the Spanish Supreme Court Prosecutor’s Office archived a three-pronged probe into the finances of Juan Carlos I.

The ex-monarch was under investigation for allegations that he accepted illegal kick-backs worth €65 million related to a high-speed rail project in Saudi Arabia and claims he used credit cards linked to foreign accounts not registered in his name for his alleged murky links to offshore funds.

Alejandro Luzón, the chief anti-corruption prosecutor, said at the time that although potentially criminal irregularities had been established, it was not possible to build a case as the statute of limitations had expired in some areas. At the same time, the royal immunity and legal protection Juan Carlos enjoyed until his abdication in 2014 applied in others.

Juan Carlos has since made payments to Spain’s tax office to resettle debt derived from undeclared donations and the use of the credit cards.

The former king, father of Spain’s King Felipe VI, fled to Abu Dhabi in 2020 after the corruption scandal grew. He has remained there in self-imposed exile since.

Last week’s decision of the prosecutor’s office paved the way for his return to Spain.

He has told his son he is considering returning to his homeland but that he plans to remain for the time being in the United Arab Emirates, Spain’s royal family said Monday (7 March).

In a letter sent to King Felipe VI published by the royal family, Juan Carlos I said that now that the investigations have been dropped it is the right time to consider returning to Spain, “although not right away.”

He said he sincerely regrets “past events of my private life” that led to the investigations.

However, on Tuesday, Sánchez said the government “takes notice” of the letter, but still thinks Juan Carlos I should give full explanations to the Spanish people.