Mourinho appeared before a judge in a Madrid court to confirm the plea agreement he had reached with prosecutors.
The Portuguese coach will also have to pay an additional penalty of 1.98 million euros (2.26 million USA dollars).
In March 2010, Mourinho was hired to manage Spanish team Real Madrid and moved to the Spanish capital.
The Portuguese national was accused of owing Spanish tax authorities almost €3.3m (£2.9m). But in the following two years, the coach "did not declare any income from his image rights". He had already paid part of what he owed a year ago.More news: Former Jets center Kevin Mawae elected to Football Hall of Fame
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Jose Mourinho continues to weigh up his next move as the sacked Manchester United boss was spotted on a rare public outing in London.
According to the agreement seen by AFP, The Special One accepted a one-year jail sentence, which was immediately commuted to a fine of 182,500 euros (208,461 USA dollars).
Mourinho, who pleaded guilty to two counts of fraud, has been fined €2 million.
The 56-year-old is the latest of many high profile footballing figures to have worked in Spain to pay a fine and accept a prison sentence as part of a crackdown from Spanish authorities on tax evasion or fraud. He said he left the country in 2013 with the "information and the conviction" that he was up to date with his tax obligations.