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A query was raised regarding whether scholarships from the Diputación de A Coruña for artistic studies abroad are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that exemption depends on whether the studies conducted abroad can be officially recognised or have their credits transferred in Spain.
Question posed: Whether such scholarships are exempt from taxation by virtue of being public scholarships for formal studies.
Scholarships for formal studies abroad are exempt provided that the degree or teaching is subject to official recognition or validation in Spain. Until such recognition or validation is obtained, the amounts received must be taxed as income from employment. The exemption shall be applied within the quantitative limits established in the Personal Income Tax Regulations.
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