The public prosecutor had wanted Carvalho to pay a £269,000 fine and be sentenced to 12 months in prison.
However the former Chelsea player, who has won 89 caps for Portugal, is unlikely to spend any time behind bars.
As the sentence is less than two years and for a first offence, it is automatically suspended, as was the case when Barcelona's Lionel Messi was found guilty of a similar offence in July 2016.
The court cited that Carvalho confessed before proceedings were brought against him and he returned the entire amount of the defrauded fee of €545,981.03.
Now playing for Chinese Super League side Shanghai SIPG this is news which is likely to end a two-decade long playing career which included spells at Porto, Chelsea and Monaco.
Portugesse defender, Ricardo Carvalho has been sent to jail after being found guilty of defaulting in tax payment during his spell in Spain.