The veteran defender admitted to a charge of concealing income from his image rights during a two-year spell at Real Madrid.
Carvalho currently plays for Chinese Super League giants Shanghai SIGP with another former Blue, Oscar.
But he was still made to face charges relating back to 2011 and 2012 at the Santiago Bernabeu.
The public prosecutor had wanted Carvalho to pay a £269,000 fine and be sentenced to 12 months in prison, reports The Sun.
But the length was reduced to seven months and Carvalho will only have to pay £128,000.
However, Carvalho is unlikely to spend any time behind bars, with Spanish law requiring a sentencing of two years or more for non-violent crimes to warrant jail time.