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V0481-16 8 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Two-year research grant exempt from Spanish tax under France-Spain double taxation treaty

A French researcher receives an international research grant to work in Spain. The DGT determines that, under the Spain-France double taxation treaty, income from this grant is not subject to Spanish taxation for the first two years of residence.

The question raised

Subjectivity of the scholarship to income tax in Spain.

The DGT's ruling

According to Article 20 of the Convention between Spain and France, the income of researchers who move to Spain at the invitation of a recognized center may not be taxed in Spain for a maximum period of two years. Given that the scholarship has a duration of two years, it will not be taxed in Spain. If the scholarship were extended, the income would become subject to taxation as employment income, unless it meets the exemption requirements of Article 7.j) of the LIRPF.

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