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V2477-17 3 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

€1,800 grant from a public university for new students is exempt from Personal Income Tax

A student inquired whether an €1,800 grant provided by a public university to cover travel and relocation costs was exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is, as it meets the requirements of a public scholarship for formal studies.

The question raised

Whether the aforementioned aid is exempt, as a scholarship for university studies, through the application of Article 7 j) of the Personal Income Tax Law.

The DGT's ruling

The aid received is considered a public scholarship for undertaking formal studies covered by the exemption under Article 7.j) of the Personal Income Tax Law (LIRPF). For the exemption to be applicable, the grant must comply with the principles of merit and ability, generality, and non-discrimination. The exempt amount to compensate for transport and accommodation expenses is limited to 15,000 euros per year according to the RIRPF.

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