Remote Logo
English
Remote Logo
English
Pricing
Book Demo
×

Book a demo, see Remote in action

 

Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

Stock options for employees in Sweden

Equity incentives are an invaluable way to attract, motivate, and retain top talent for your business. But when you cross hiring borders, they can become deeply complex.

Remote enables you to easily offer non-qualified stock options (NSOs) to your team members in Sweden. There are no compliance headaches or administrative hassles — just simplicity and clarity for you and your people at every step.

What are NSOs?

NSOs are a type of equity incentive. They give your team members the right to buy a set number of shares in your company at a fixed price, known as the exercise price.

This typically happens after a vesting period, which is often based on the length of time your team member stays at your company. As a result, they are a great way to foster long-term commitment, and align people with your company’s strategic goals.

Who can receive NSOs in Sweden?

Direct employees EOR employees Contractors
Can receive NSOs? Yes Yes Yes
Difficulty score Easy Easy Easy

It’s important to note that granting stock options to contractors can also potentially increase your misclassification risk in Sweden (although this is not the primary factor). See how Remote protects you against misclassification.

How are NSOs taxed in Sweden?

In Sweden, NSOs are taxed in the following ways:

Direct employees EOR employees Contractors
At grant There is no taxation at grant. There is no taxation at grant. There is no taxation at grant.
At exercise The spread (i.e., the difference between the fair market value of the shares and the exercise price) is taxed as salary income. The spread (i.e., the difference between the fair market value of the shares and the exercise price) is taxed as salary income. The spread (i.e., the difference between the fair market value of the shares and the exercise price) is taxed as salary income.
At sale Any gain is taxed as capital gains. Any gain is taxed as capital gains. Any gain is taxed as capital gains.

Are there tax advantages for your team members?

Direct employees EOR employees Contractors
A tax-favored scheme exists for direct employees, provided 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)). There are no tax-favored schemes for EOR employees. There are no tax-favored schemes for contractors.

Is your business eligible?

If you want to use Remote Equity Advanced to offer stock options to your Sweden-based team members, your top corporation (i.e., your parent company) must be incorporated in Delaware. Your company must also be private — not publicly listed.