The incident leaves a blot over the ace's professional playing career, with Carvalho regarded as the best defender in the league during his time at Chelsea.
Carvalho won three Premier League titles with Chelsea.
Spanish law states that sentences given to first-time offenders that are under the length of two years, act as suspended sentences.
The 37-year-old was given a reduced term for his full acknowledgement of the circumstances and his compliance in the investigation whilst repaying the entirety of the €545,981 requested by the magistrate.
Jorge Mendes client Carvalho, now 39 and playing in China for Shanghai SIPG, spent two seasons at Madrid from 2010 to 2012.
Carvalho who is now playing for Chinese club Shanghai SIPG is also alleged to have hidden £488,500 from the authorities which has since been returned.
He has admitted to hiding money from image rights in 2011 and 2012 and is ordered to pay a fine of €142,822 (£128,000).
Carvalho joins Lionel Messi in the list of players caught dodging tax in Spain.