Prosecutors in Germany have agreed to drop proceedings against the Roman Catholic Bishop of Limburg, in return for a payment of 20,000 euros (£16,800: $27,000).
Bishop Franz-Peter Tebartz-van Elst was accused of lying under oath over his flights to India.
Claims that the bishop spent more than 31m euros (£26m; $42m) on renovating his official residence caused outrage.
Pope Francis ordered the bishop to take a leave of absence from his post.
An investigation into Bishop Tebartz-van Elst's apparently lavish spending is taking place.
The bishop was facing prosecution in Hamburg over claims he gave false statements in a case against Der Spiegel magazine, which had reported that he took first-class flights to visit slum dwellers.
Church members in Germany pay a compulsory church tax out of their income.