Germany 🇩🇪

Country guides for offering equity compensation to remote employees

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the
Germany 🇩🇪
?
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Introduction

Direct employees

Can receive NSO?

✅ Yes!

General taxation

In principle, at the time of exercise, the spread will likely be taxed as regular income and be subject to income tax, social security contributions and other surcharges.

At the time of sale, the gains will be subject to capital gains tax at a rate of 25% (if the employee holds less than 1% of the capital), plus church taxes, depending on the employee’s situation.

General tax, reporting & legal paperwork difficulty score

🤯 🤯

Tax advantages

There are certain tax advantages, including a taxation deferral and an exemption of EUR 1,440 on the spread (subject to certain conditions).‍

EoR employees

Can receive NSO?

✅ Yes!

General taxation

In principle, at the time of exercise, the spread will likely be taxed as any professional income and be subject to income tax and other surcharges.

At the time of sale, the gains will be subject to capital gains tax at a rate of 25% (if the grantee holds less than 1% of the capital), plus church taxes, depending on the grantee’s situation.

General tax, reporting & legal paperwork difficulty score

🤯

Tax advantages

No particular tax advantages.

Contractors

Can receive NSO?

✅ Yes!

General taxation

In principle, at the time of exercise, the spread will likely be taxed as regular income and be subject to income tax, social security contributions and other surcharges.

At the time of sale, the gains will be subject to capital gains tax at a rate of 25% (if the grantee holds less than 1% of the capital), plus church taxes, depending on the grantee’s situation.

General tax, reporting & legal paperwork difficulty score

🤯 🤯

Tax advantages

No particular tax advantages for EoR employees.

Want to know more about equity in

the

Germany 🇩🇪

?

Discover everything you need to know about taxation and reporting obligations for you and your team in

the

Germany 🇩🇪

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