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V2721-23 6 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo en especie

Exercise of stock options classified as employment income in kind

A taxpayer inquires about the taxation of stock options from a foreign company following their departure from the firm. The DGT determines that these constitute employment income in kind and analyses the application of relevant exemptions and reductions.

The question raised

Taxation of the transaction.

The DGT's ruling

The granting of stock options is classified as income in kind from employment, even if the employee no longer provides services to the entity upon exercising them. The income is valued by the difference between the market value of the share and the price paid. The 12,000 euro exemption does not apply as the individual is not an active employee. The 30% reduction may be applied if the vesting period exceeds two years and the limits and requirements of the LIRPF are met.

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