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Thousands of families are celebrating after a European ruling exempts them from taxing Erasmus scholarships.
Recently, Hacienda has announced news that will benefit many Spanish families. The fact is that the aid received from Erasmus scholarships will no longer have to be taxed in the Income Tax return.
This decision is based on a ruling by the Court of Justice of the European Union (CJEU). One that affects all member countries, including Spain.
Hacienda gives good news: what you'll save with Erasmus scholarships
The CJEU has ruled that mobility aid, such as Erasmus scholarships, should not be considered taxable income in the country of residence of the student or their parents. In the specific case of Croatia, the local Hacienda had included the amount of the Erasmus scholarship in the calculation of the parents' income tax. This resulted in a higher tax burden for them.
The European court considered that this practice was incompatible with European Union law. The fact is that it constituted an unjustified restriction on the right of free movement and residence within the territory of the Member States.
How does this European ruling affect Erasmus aid in Spain?
Although the ruling refers to a case in Croatia, its effects are applicable to all European Union countries, including Spain. Therefore, from now on, the aid received from Erasmus scholarships should not be included in the Income Tax return of the student's parents or guardians.
What this means is that the taxable base will not increase. This fact can result in a significant saving on the annual tax bill by all accounts.
A beneficial news for many families
This measure benefits numerous Spanish families who have been receiving aid for their children to study abroad. By eliminating the obligation to declare this aid, the tax burden on parents is reduced, which can translate into considerable economic savings.
Additionally, it encourages student mobility and facilitates access to international educational programs, promoting the training and personal development of students. Overall, the decision by Hacienda to exempt Erasmus scholarship aid from taxation in the Income Tax represents progress for Spanish families. Alleviating their tax burden and promoting international education.
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