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V3230-19 25 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Public grants for formal studies are exempt from Personal Income Tax (IRPF)

A student inquired whether a grant received for a language immersion programme in Spain should be subject to tax in their income tax return. The Directorate General for Taxes (DGT) ruled that, as it is a public grant for formal studies, it is exempt provided that legal limits are respected.

The question raised

Whether it is appropriate to include said scholarship in the Personal Income Tax return or if the same is exempt from taxation.

The DGT's ruling

Public scholarships for pursuing regulated studies within the educational system are exempt pursuant to Article 7.j) of the Personal Income Tax Law (LIRPF). This exemption applies to all levels and degrees, including special regime education such as languages. The exempt amount comprises tuition costs and a financial allowance within the limits established in the Personal Income Tax Regulations.

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