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.
Spanish law is such that any sentence under two years for a non-violent crime rarely requires a defendant without previous convictions to serve jail time.
Carvalho was handed the punishment by a magistrates court in Madrid and is understood to relate to fraudulent image rights from his time in the Spanish capital.More news: Astros' Altuve hits 3 homers, Yankees lose
He departed to rejoin Mourinho under the pristine spotlights of Real Madrid to add a La Liga title to his name in 2012.
The prosecution had argued for a year-long sentence and a €300,000 fine (£286,824), however this was reduced to seven months and a payment of €142,822 (£127, 979).
Carvalho joins Lionel Messi in the list of players caught dodging tax in Spain.
Monaco forward Radamel Falcao, Sporting Lisbon's Fabio Coentrao and Manchester United manager Jose Mourinho have also faced investigation by Spanish authorities for tax evasion while they lived in Spain.