Portugal–Spain treaty Article 21: Students

1. Payments which a student or trainee who is, or was immediately before, a resident of a Contracting State and who is present in the other Contracting State solely for the purpose of pursuing his studies or vocational training there receives for the purpose of his maintenance, studies or vocational training shall not be taxed in that other State, provided that such payments arise from sources outside that State.

1 - As importâncias que um estudante ou um estagiário que é ou foi imediatamente antes residente de um Estado Contratante e que permanece no outro Estado Contratante com o único fim de aí prosseguir os seus estudos ou a sua formação profissional recebe para fazer face às despesas com a sua manutenção, estudos ou formação profissional não são tributadas nesse outro Estado, desde que provenham de fontes situadas fora dele.

2. The persons referred to in the preceding paragraph shall likewise be taxed in the State in which they are present for the said purposes on amounts received as remuneration for an activity carried on part-time in that other State, up to a limit of 7000 ECU a year, in order to enable them to continue their studies or vocational training.

2 - As pessoas referidas no número anterior são tributadas igualmente no Estado onde permanecem para os fins referidos, pelas importâncias recebidas como remuneração de uma actividade exercida a tempo parcial neste outro Estado, com o limite de 7000 ECU anuais, com vista a permitir-lhes a continuação dos seus estudos ou da sua formação profissional.

Editorial note

Paragraph 2 is translated as printed in the Portuguese text, which reads “são tributadas igualmente” (literally “are likewise taxed”). The authentic Spanish text reads “tampoco pueden someterse a imposición” (“nor may they be taxed”), i.e. remuneration for part-time work of up to 7000 ECU a year is exempt in the host State. The Spanish reading is the one consistent with the 7000 ECU limit, with “igualmente” linking back to the exemption in paragraph 1 and with the stated purpose of enabling the person to continue his studies or training. Both texts are equally authentic (final clause, see Article 29); where authentic texts differ, the meaning which best reconciles them, having regard to the object and purpose of the treaty, is adopted (Article 33(4) of the Vienna Convention on the Law of Treaties), which points to the exemption. Since 1 January 1999, references to the ECU are read as references to the euro at the rate of one euro to one ECU (Council Regulation (EC) No 1103/97, Article 2(1)).

What we checked in this article

Para 2 translated as printed in the Portuguese ('are likewise taxed'); Spanish text (exemption) and intended meaning explained in the note.

Paying or receiving income between Portugal and Spain? Article 21 may decide where it is taxed.

We apply tax treaties to dividends, interest, royalties, salaries and gains, prepare the relief-at-source form and refund claims, and check structures against the treaty’s anti-abuse rules. A written answer and a fixed quote within one working day.

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Unofficial English translation prepared by BCA Portugal for reference. The Convention was done in Portuguese and Spanish and only those texts are authentic. The Portuguese text is reproduced from the official publication. Editorial notes are ours and are not part of the Convention.

Article 21 Students

Treaty relief between Portugal and Spain, claimed correctly