Stock Plans in Spain

Summary Table
(Updated as of August 2024)

Spain has several tax planning opportunities, including a tax qualifying plan for start-up companies, a broad-based plan exemption and a taxable income deduction for income generated over several years. Several conditions apply. Companies should make a policy decision as to whether to apply these tax deductions or exemptions at the time of withholding or leave employees to submit claims on their tax returns.

Be aware that restricted stock awards (but not units) are likely taxed at grant. 

While the general tax treatment of stock-based benefits does not vary across Spain, certain autonomous regions, such as Andalucia and Catalonia, apply different tax rates.

As an EU member state, Spain adheres to the EU regulations and guidelines for securities law, data privacy and age discrimination laws. Companies should review these rules along with any local country variations with their advisors before offering stock plans to employees in Spain.      

Overview of Stock Plans in Spain