Stock Plans in Sweden
(Updated as of August 2023)
Offering stock compensation to employees in Sweden is generally straightforward. However, companies should be aware of the high employer social tax rates.
One administrative issue that often causes problems is that the amount a company can withhold in taxes is limited to the employee’s monthly salary. This can result in the inability to remit taxes withheld by a broker if done at a flat rate. Companies should work with their local payroll provider in Sweden to find an administrative solution.
Be aware that restricted stock awards (but not units) are likely taxed at grant.
As an EU member State, Sweden adheres to the EU regulations and guidelines for securities law, data privacy and age discrimination. Companies should review these with their advisors before offering stock plans to employees in Sweden.