COMPANIES > Legal Frame

LEGAL FRAME

The internships in the IAESTE exchange programme are not professional but educational. Therefore, the trainees need not be in the Social Security system. All students are protected by an international insurance which covers accidents, illnesses and repatriation, so that the company does not have to take care of this kind of expenses.

The tax situation of IAESTE trainees follows article 29(1) of the Spanish University Reform Law (11/1983, August 25), which states that Universities must approve the internships to be developed by their students; and article 7(1) of the Royal Decree 1497/1981 on University Cooperation Programmes, which says that companies offering internships will have to follow only the obligations established in the Cooperation Agreement, and never those usually derived from a regular work contract.

Click here to read the texts of the Law in Spanish

According to the Spanish Tax Revenue Law 18/1991, June 6, the taxes applicable to each trainee will vary depending on their nationality and whether their countries of origin have a Double Taxation Treaty with Spain or not.

Therefore, taxes imposed on the trainees’ income will be determined in one of the following ways:

1. Foreign students whose countries of origin have not signed a Double Taxation Treaty with Spain will have their income taxed in accordance with Spanish Tax Revenue Law 18/1991, June 6.

2. Students whose countries of origin have not signed a Double Taxation Treaty with Spain will have their income taxed in accordance with the specifications of the Treaty.

Should you have any doubts concerning these issues please get in touch with the General Office of IAESTE España.