Maria Gouveia, a partner in Morais Leitão’s tax team, has published an article in International Tax Review focusing on the special tax regime applicable to stock options in Portugal, analysing some of the most common misconceptions associated with this form of remuneration.
New tax framework for stock options in Portugal
In the article, the lawyer explains that equity-based incentive plans have been gaining relevance as a form of compensation, particularly following the approval in 2023 of the specific tax regime introduced by the so-called Start-up Law. Despite this legislative development, incorrect interpretations regarding the functioning and scope of the regime persist, often leading companies and employees not to fully benefit from these mechanisms.
Key myths surrounding the special stock option regime
The article examines these misconceptions and seeks to clarify several key aspects of the legal and tax framework applicable in Portugal. In particular, it addresses:
- The tax deferral mechanism, which determines when taxation related to stock option plans occurs;
- The effective tax rates, which are frequently subject to incorrect interpretations;
- The eligibility criteria, defining when companies and beneficiaries may apply the special regime;
- The scope of the regime, including the types of plans and situations covered.
By clarifying these aspects, the article aims to contribute to a more accurate understanding of Portugal’s stock option regime and its role in strengthening the country’s competitiveness in attracting and retaining talent, particularly in innovative and growing companies.
The full article can be read in International Tax Review.
