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Erasmus students in a music class Manuel Brágimo-Ical
Erasmus Grant Will Not Affect Parents' Tax Returns

Erasmus Grant Will Not Affect Parents' Tax Returns

European Court rules that the amount received by a student under this grant should not be considered when calculating their parents' taxes

EP

Jueves, 16 de enero 2025, 14:16

The European Court of Justice ruled on Thursday that the amount of the Erasmus grant received by a student should not be considered when calculating the income tax of their parents.

The case arose in Croatia, where the mother of a student who benefited from the Erasmus grant saw her personal tax deduction for a dependent child removed by the Croatian tax authorities, as the amount exceeded a threshold set by law due to the mobility aid received under the European exchange programme.

In its ruling on Thursday, the ECJ found the actions of the Croatian tax authorities incompatible with European law, as the aid was not subject to national taxation. This decision represents an "unjustified restriction on the right of free movement and residence within the territory of the Member States."

The fact that the Erasmus grant amount was considered in calculating the mother's taxes "constitutes a restriction on the right of free movement and residence" and is seen as detrimental not only to the dependent child, who exercised their freedom of movement, but also to the contributing parent.

In general terms, European justice indicates that receiving financial aid from the Erasmus programme cannot be considered as reducing the expenses of contributing parents in fulfilling their obligation to support dependent children, nor does it increase their taxable capacity from a fiscal perspective.

"The tax treatment of these aids may result in heavier tax burdens for these contributing parents, without an increase in their available resources to meet them," the Luxembourg court maintains.

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