New requirements on income derived from the exercise of stock options
On March 4, 2011 new Spanish Law – Spain’s Sustainable Economy Law 2/2011 (Ley de Economía Sostenible)
(“the Law”) – was introduced. This new law includes an “additional provision” into the Spanish Personal Income
Tax Act, whereby the exercise of stock options granted annually will not benefit from the 40% tax reduction
contained in the Act.