The former Manchester United boss must now pay nearly £1.9million to authorities after a court agreed to exchange a one-year prison sentence in return for a fine of €182,500 (£160,160).
This due to Laws in Spain usually not enforcing sentences of less than two years.
However, he struck a deal with Spanish prosecutors past year that was ratified in court Tuesday.
Mourinho still has to pay almost 2 million euros ($2.2 million) to tax authorities as part of the deal.
Legit.ng earlier reported that Jose Mourinho has been found guilty of evading tax during his time managing Spanish League giants Real Madrid.
The Portuguese coach will also have to pay an additional penalty of 1.98 million euros (2.26 million USA dollars).
The Portuguese will reportedly have to pay a €2m (£1.75m) fine alongside the suspended prison sentence.
Mourinho has been out of work since he was sacked by United in December after two-and-a-half years at the helm.
The 56-year-old Portuguese coach, recently fired by Manchester United, was in charge of Real Madrid from 2010-13.
He is the latest high-profile football personality to strike a deal with Spanish authorities, which are pursuing a crackdown on tax evasion or fraud by the country's many resident star players.