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V0836-23 10 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Municipal aid for higher education may be exempt from Income Tax as public scholarships

A local council has requested clarification on whether aid granted to higher education students through competitive processes is exempt from Income Tax (IRPF). The Directorate General for Tax (DGT) has ruled that it is, as these constitute public scholarships for formal studies.

The question raised

Whether these constitute scholarships exempt from Personal Income Tax.

The DGT's ruling

Grants for studies leading to the attainment of an official degree are considered public scholarships for pursuing regulated studies within the educational system. Therefore, they are exempt under the terms of Article 7.j) of the LIRPF and Article 2.1 of the RIRPF. The exemption applies within the financial limits established by the regulations for tuition, insurance, and financial allowances.

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