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V0596-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas de investigación

Research grant exemption requires call for applications to mandate civil servant or researcher status

An Italy-based researcher has enquired whether their research grant would be exempt from Personal Income Tax (IRPF) upon becoming a tax resident in Spain. The Directorate General for Taxes (DGT) has stated that it cannot determine eligibility for exemption without knowing whether the awarding body expressly requires status as a civil servant, public administration staff, or university teacher/researcher as a prerequisite or merit within the call for applications.

The question raised

Assuming that the individual becomes a tax resident in Spain, to determine whether the income received from the research grant would be exempt from Personal Income Tax.

The DGT's ruling

For a research grant to be exempt under Article 7.j) of the Personal Income Tax Law (LIRPF), the call for applications must expressly provide for the status of civil servant, public administration personnel, or university teaching and research staff as a requirement or merit. This status must be assessed by the convening entity when awarding the aid and cannot be subject to subsequent accreditation. If these requirements are not met, the income is considered employment income subject to taxation.

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