Firstly, who can receive NSOs?

Direct employees

YES

EOR employees

YES

CONTRACTORS

YES

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⚠️ The tax information below is an extremely brief summary for standard situations of the referred relationship, and each situation may of course be different from the norm and have its own specificities. ⚠️

A more comprehensive set of information for this country and work relationship is available on Easop.

If you’re looking for more detailed information in this country (or if you are just curious about our global compliance offering and pricing), get in touch with us and we’ll tell you more about it! 💡

General Taxation

Learn about equity schemes and taxation policies in

the

Sweden

At grant 👉 No taxation.

At exercise 👉 The spread (i.e. the difference between the fair market value (FMV) of the shares at the time of exercise and the exercise price paid by the grantee) is taxed as salary income.

At sale 👉 The sale price minus the fair market value of the shares at the time of exercise will be taxed as capital gains.

We're still processing this information for website purposes. However, if you need answers immediately, the Easop app is always up to date. Schedule a demo here and we can talk it through!

At grant 👉 No taxation.

At exercise 👉 The spread (i.e. the difference between the fair market value (FMV) of the shares at the time of exercise and the exercise price paid by the grantee) is taxed as salary income.

At sale 👉 The sale price minus the fair market value of the shares at the time of exercise will be taxed as capital gains.

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We're still processing this information for website purposes. However, if you need answers immediately, the Easop app is always up to date. Schedule a demo here and we can talk it through!

At grant 👉 No taxation.

At exercise 👉 The spread (i.e. the difference between the fair market value (FMV) of the shares at the time of exercise and the exercise price paid by the grantee) is taxed as salary income.

At sale 👉 The sale price minus the fair market value of the shares at the time of exercise will be taxed as capital gains.

‍

We're still processing this information for website purposes. However, if you need answers immediately, the Easop app is always up to date. Schedule a demo here and we can talk it through!

Tax advantages

Learn about equity schemes and taxation policies in

the

Sweden

A tax favoured scheme exists for direct employees only if the underlying shares of the stock options are from the Swedish employer or an entity of a group company that is domiciled in the European Economic Area (EEA).

We're still processing this information for website purposes. However, if you need answers immediately, the Easop app is always up to date. Schedule a demo here and we can talk it through!

Introduction

A more comprehensive set of information for this country and work relationship is available on Easop.

Regular employee

Employee via EoR

✅ Yes, you can grant non-qualified stock-options (NSO) to EoR employees in Sweden.

In a nutshell, what does taxation look like?

At grant 👉 No taxation.
At exercise 👉 The spread (i.e. the difference between the fair market value (FMV) of the shares at the time of exercise and the exercise price paid by the grantee) is taxed as salary income.
At sale 👉 The sale price minus the fair market value of the shares at the time of exercise will be taxed as capital gains.

Is there a tax-favored scheme?

💡 A way to reduce taxation for the grantee would be to allow the grantee to “early exercise” the stock options (i.e. exercising stock options that have not vested yet) but early exercises are not always easy to manage from the company’s perspective and on the grantee's side it may increase the risks of paying an exercise price (and taxes thereon) on something which may happen to be eventually worth nothing later down the road.

Contractor

Pay attention to:

Note that granting stock options to contractors could increase the misclassification risk (i.e. the contractor relationship being requalified as an employer-employee relationship, with all tax consequences that can go with it). This will never be the only factor though, what counts primarily for determining the degree of misclassification risk are factors relating to the modalities of the services performed (control over the contractor’s work, exclusivity, term of the services, etc.).