The Ultimate Guide to Stock Options in Swedish Startups
In June 2021 we did a major revision of this post together with tax lawyer Victor Stålblad from Bird&Bird, updating it with:
- Most common mistakes we have learnt about so far
- Walkthrough of an important court case in 2020 (and why our standard remain unchanged)
- Updated sums & percentages to be accurate as of 2021
Since January 2018 there are new and more beneficial tax regulations for Swedish startups giving qualified employee stock options (“QESO”, Swedish: kvalificerade personaloptioner) to employees. This is a guide to the new law and how you can create stock options meeting the criteria for lower taxes.
First, a summary will give you an overview of the new law and the whole process. Next, different kinds of employee incentive programs will be discussed, followed by a deep-dive into the criteria for lower taxes and how to set up an option pool. We’ll then discuss vesting before finally walking through a step-by-step process: how to implement a stock options program.
Warrant Guide for Swedish Startups
This is a guide on how to set up an incentive scheme for employees using market level warrants (Swedish: teckningsoptioner) in Swedish limited companies (aktiebolag).
First, a summary will give you an overview of the whole process and highlight some common mistakes. Next, we’ll discuss how Swedish warrants work and how to set up an option pool. Finally, you will be walked through a step-by-step process: how to implement an option scheme.