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V2172-24 9 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Mobility grants for university lecturers are subject to income tax

A university professor enquired whether grants for overseas mobility stays are exempt from Personal Income Tax (IRPF) or subject to withholding. The Directorate General for Taxes (DGT) has ruled that these amounts must be taxed as employment income and are subject to withholding.

The question raised

To determine whether said grants are subject to withholding tax or are exempt from taxation and, consequently, from withholding tax on Personal Income Tax.

The DGT's ruling

The grants are not exempt allowances because their voluntary nature prevents them from being considered travel expenses imposed by the employer. They are also not grants exempt under Article 7.j) of the Personal Income Tax Law (LIRPF) because the recipients constitute a specific group (teaching and research staff) rather than a generic collective. Therefore, they constitute employment income subject to withholding tax pursuant to Article 17 of the LIRPF.

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