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A taxpayer inquired whether they are entitled to a tax reduction for geographical mobility after relocating to undertake a paid scholarship registered with Social Security. The Directorate General of Taxes (DGT) ruled that, as a scholarship does not constitute an employment contract, the requirements for this deduction are not met.
Taxpayers undertaking paid scholarships that require relocation cannot claim the geographical mobility tax deduction, as the legal nature of a scholarship differs from an employment contract.
The tax team reviews your specific situation.
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