Princess Cristina_Spain
Spain's Prince Felipe and his sister Princess Cristina attend the funeral of Beatriz De Borbon, the aunt of Spain's then King Juan Carlos, at the church of Santiago y Santa Maria de Montserrat in central Rome on Nov. 26, 2002. Reuters/Paolo Cocco

(Reuters) - A Spanish court said on Wednesday it had formalized charges against Cristina de Borbon, sister of newly-crowned King Felipe VI, and her husband in a corruption investigation, paving the way for a trial that could further damage the royal family.

The Palma de Mallorca court upheld charges of tax fraud and money laundering against Princess Cristina, in one of the last steps before opening trial proceedings.

Her husband Inaki Urdangarin is accused of embezzling several millions of euros in public funds and a trial would centre on his business dealings.

The rulings - which can be appealed before a trial begins - come barely a week after King Juan Carlos abdicated in favor of his son Felipe, in a bid to revive the monarchy's scandal-worn image at a time of economic hardship.