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The Latin Grammy Award for Album of the Year is an honor presented annually at the Latin Grammy Awards, a ceremony that recognizes excellence and creates a wider awareness of cultural diversity and contributions of Latin recording artists in the United States and internationally. The award is given to the performers, producers, audio engineers and mastering engineers for vocal or instrumental albums with 51% of new recorded songs. Albums of previously released recordings, such as reissues, compilations of old recordings and greatest hits albums packages are not eligible. Due to the increasing musical changes in the industry, from 2012 the category includes 10 nominees, according to a restructuration made by the academy for the four general categories: Song of the Year, Record of the Year, Best New Artist and Album of the Year.

Alejandro Sanz, Juanes and Juan Luis Guerra (one as producer) have won the most awards in the category with three wins. They are followed by Calle 13 with two winning albums. Colombian singer-songwriter Shakira became the first female recipient in 2006.

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