King Carlos of Spain’s son-in-law is to stand trial for corruption.
Iñaki Urdangarin, 44, husband of the Infanta Cristina, is expected to be charged with embezzlement, fraud, falsifying documentation and perverting the course of justice.
Mr Urdangarin, styled the Duke of Palma de Mallorca, denies wrongdoing. It is alleged that he extracted €6 million of public funds for fictitious services.
The Noos Institute was paid up to €6m (£4.97m) by regional governments to put on sports and tourism events.
El País reported Mr Urdangarin will face a charge of defrauding public funds for allegedly negotiating contracts with regional governments that did not follow normal regulations.
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A large part of the cash allegedly ended in private companies run by the duke and a business partner, Diego Torres.
Mr Urdangarin will also go on trial for perverting the course of justice for using royal influence to gain contracts worth €6m and contravening usual competition rules.
The duke is to be charged with falsifying documentation by allegedly falsifying receipts for services.
Mr Urdangarin will also be accused of embezzlement for charging €6m for services, along with Mr Torres, which were worth less than half this amount.
As Spain struggles with the highest unemployment in the European Union at 23 per cent and is mired in a second recession, the prospect that a duke would use royal connections to line his own pockets has angered many.
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Spaniards have long admired the popular King Juan Carlos for the way he guided the country from dictatorship to democracy.
But just as the frail king prepares to hand power to his heir, Prince Felipe, the tide of opinion has turned against the Borbons.
A poll in December found support for the royal family had declined to 49 per cent from 57 per cent in 2010.
When it emerged that the Infanta Cristina, who was a member of the board of the Noos Institute, would not face questioning, it provoked the satirical magazine El Jueves to run a front page cartoon depicting the king raising his middle finger to the justice system.
Mr Urdangarin was barracked by anti-royal protesters when he appeared in court in Majorca last month to face questioning.
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“I’m appearing today to demonstrate my innocence and defend my honour,” he said.