The 29 year old joined the Toffees on a two year deal with the option to extend.
The Columbia international joined Real Madrid from Monaco in 2014 after wining the golden boot at world cup in Brazil that summer.
He said "I am really really happy to be at this great club with so many history I am here with a manager who knows me really well"
Real Madrid signed him from Monaco under the Italian manager and was also loaned to Bayern Munich for two seasons where he won the bundesliga during those campaigns and had already won two Laliga titles and two champions league.
He returned to Real Madrid and featured eight times and scored a goal.
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