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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

Stock options for employees in Poland

Equity incentives are an invaluable way to attract, motivate, and retain top talent for your business. But when you cross hiring borders, they can become deeply complex.

Remote enables you to easily offer non-qualified stock options (NSOs) to your team members in Poland. There are no compliance headaches or administrative hassles — just simplicity and clarity for you and your people at every step.

What are NSOs?

NSOs are a type of equity incentive. They give your team members the right to buy a set number of shares in your company at a fixed price, known as the exercise price.

This typically happens after a vesting period, which is often based on the length of time your team member stays at your company. As a result, they are a great way to foster long-term commitment, and align people with your company’s strategic goals.

Who can receive NSOs in Poland?

Direct employees EOR employees Contractors
Can receive NSOs? Yes Yes Yes
Difficulty score Medium Easy Medium

It’s important to note that granting stock options to contractors can also potentially increase your misclassification risk in Poland (although this is not the primary factor). See how Remote protects you against misclassification.

How are NSOs taxed in Poland?

In Poland, NSOs are taxed in the following ways:

Direct employees EOR employees Contractors
At grant There is no taxation at grant. There is no taxation at grant. There is no taxation at grant.
At exercise The tax treatment of the gain made upon exercise is not entirely clear, as the spread (i.e., the difference between the fair market value of the shares and the exercise price) could either be taxed as “other sources of revenue” or as employment income. The tax treatment of the gain made upon exercise is not entirely clear, as the spread (i.e., the difference between the fair market value of the shares and the exercise price) could either be taxed as “other sources of revenue” or as employment income. The tax treatment of the gain made upon exercise is not entirely clear, and can depend on the type of agreement between your company and the contractor (as well as the entity the contractor works for).
At sale Any gain is subject to capital gains tax. Any gain is subject to capital gains tax. Any gain is subject to capital gains tax.

Are there tax advantages for your team members?

Direct employees EOR employees Contractors
Taxation can be deferred to the time of sale. There is no tax-favored scheme. If the contractor works under a civil law contract, they can potentially postpone the taxation to the time of sale. It's also worth noting that capital gains are less heavily taxed compared to professional income, providing a slight tax advantage (compared to standard cash bonuses). In general, the earlier the contractor exercises, the better (from a tax perspective). This is because any increase in value of the shares between the time of exercise and the time of sale will be subject to a lower tax rate.

Is your business eligible?

If you want to use Remote Equity Advanced to offer stock options to your Poland-based team members, your top corporation (i.e., your parent company) must be incorporated in Delaware. Your company must also be private — not publicly listed.

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