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Share options earned not in Sweden

before becoming Swedish tax resident

post 31.May.2019, 06:38 PM
Post #1
Joined: 31.May.2019

Hi, I've tried to check this with Swedish tax agency, but have got a very vague response, which basically lists all combination of what they might or might not do. Maybe someone here has some idea how it actually works. So now I work in Estonia and have some amount of share options being vested. By the point I move to Sweden vesting will be over and share options contract closed.

Now, while being already Swedish tax resident, if I exercise vested share options but don't sell the shares, would I have to pay some tax? And another question what if I exercise and sell the shares right away?

In Estonia such situation would be treated as I get a profit from the share options that I've earned while not being Estonian tax resident, so I would have to pay tax to a country in which I've earned them. I guess in Sweden it's more complicated than that, would appreciate if someone could help me figuring this out. Thanks!
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post 1.Jun.2019, 09:01 AM
Post #2
Joined: 12.Dec.2013

They will be vague because they don't know. You need to study the double taxation agreement between Estonia and Sweden. Your own obligation is merely to declare all your sources of income on your tax form and how much tax you might have paid in Estonia. Whoever then deals with your tax declaration will apply whatever principles exist in the double taxation agreement.
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post 4.Jun.2019, 07:04 PM
Post #3
Joined: 14.Sep.2017

I'm not an accountant, but my understanding is that there is no tax to pay when you exercise the options. When you sell the shares at a profit that is, of course, taxable. Whether you have to pay that tax in Sweden, Estonia or some combination of the two depends on the tax treaty between them, as Essingen55 said.
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