Former Manchester United's Portuguese manager Jose Mourinho (C) falls as he drops the puck to start a Continental hockey league match between Avangard Omsk and SKA Saint Petersburg in Balashikha outside Moscow on February 4, 2019.
Mourinho appeared before a judge in the Spanish capital to confirm the plea agreement he had reached with prosecutors.
Spanish tax authorities claimed Mourinho owed £3m - he had already settled a previous claim relating to his Spanish taxes after a 2014 inquiry, which resulted in a penalty of £1.1m.
The Portuguese will not spend any time in prison as the sentence is for less than two years. As part of the deal, he also has to pay a fine of almost 2 million euros (US$2.2 million).
He has however been ordered to pay a €2 million fine, after being accused of owing almost €3.3m in undeclared image rights revenue while he was Real Madrid manager. He had already paid part of what he owed past year.
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Portuguese football legend Jose Mourinho, who made a surprise appearance at a hockey game between two KHL teams in Russian Federation, suffered an unfortunate mishap right after he symbolically dropped the puck on the ice.
Instead of spending time behind bars, he will pay an additional €182,500 fine, separate to the aforementioned €2m fine.
The 56-year-old is the latest of many high profile footballing figures to have worked in Spain to pay a fine and accept a prison sentence as part of a crackdown from Spanish authorities on tax evasion or fraud.
Prosecutors believe by ceding his image rights to a series of companies based in tax havens, Mourinho committed fraud by not declaring the income those companies made from his image rights.