{"id":2636,"date":"2026-10-09T08:18:31","date_gmt":"2026-10-09T06:18:31","guid":{"rendered":"https:\/\/nexuslaw.gr\/?p=2636"},"modified":"2026-10-09T08:21:24","modified_gmt":"2026-10-09T06:21:24","slug":"stock-options-stock-awards-%cf%83%cf%84%ce%b7%ce%bd-%ce%b5%ce%bb%ce%bb%ce%ac%ce%b4%ce%b1-%ce%bd%ce%bf%ce%bc%ce%b9%ce%ba%cf%8c-%cf%80%ce%bb%ce%b1%ce%af%cf%83%ce%b9%ce%bf-%ce%ba%ce%b1%ce%b9","status":"publish","type":"post","link":"https:\/\/nexuslaw.gr\/en\/stock-options-stock-awards-%cf%83%cf%84%ce%b7%ce%bd-%ce%b5%ce%bb%ce%bb%ce%ac%ce%b4%ce%b1-%ce%bd%ce%bf%ce%bc%ce%b9%ce%ba%cf%8c-%cf%80%ce%bb%ce%b1%ce%af%cf%83%ce%b9%ce%bf-%ce%ba%ce%b1%ce%b9\/","title":{"rendered":"Stock Options & Stock Awards in Greece: Legal Framework and Tax Treatment"},"content":{"rendered":"
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What Are Stock Options and Stock Awards<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Stock Options and Stock Awards are modern reward tools for employees, Stock associates, executives, and board members, through which a company may link the remuneration or reward of such individuals to the company\u2019s value and performance.<\/p>

In the case of Stock Options, beneficiaries are granted, subject to specific terms, an option to acquire shares of the company at a preferential price, whereas Stock Awards concern programs for the free allocation of shares to beneficiaries upon the achievement of a specific result or the occurrence of a specific event.<\/p>

The feasibility and manner of implementing these tools depend, among other factors, on the company\u2019s legal form, the structure of the program, and the capacity of the beneficiary. The Greek legal framework provides for specific mechanisms for granting such incentives, while special rules have also been introduced regarding their tax treatment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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How does an S.A. grant Stock Options and Stock Awards<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Under Greek law, these mechanisms are explicitly available only to soci\u00e9t\u00e9s anonymes, as specifically provided for in Articles 113 and 114 of Law 4548\/2018, which regulate the possibility for a soci\u00e9t\u00e9 anonyme to establish share distribution programs in the form of stock options and free share distribution programs, respectively.<\/p>

In both cases, a resolution of the company\u2019s general meeting is required, which is adopted with an increased quorum and majority, and must determine the key terms of the program. The total nominal value of the shares allocated under the above programs may not exceed, in aggregate, 1\/10 of the paid-up share capital, while, to fund the programs, the company may either carry out a capital increase or allocate treasury shares.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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How are Stock Options and Stock Awards taxed?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Article 42A of Law 4172\/2013, as introduced by Law 4646\/2019, established a favorable tax regime for income arising from the granting of stock options and from free share granting plans, taxing, subject to certain conditions, the benefit received by the beneficiaries as capital gains at a rate of 15% (or 5% for start-up companies), rather than as employment income, where the tax rate can reach up to 44%.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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A. Stock Options<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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What are the key points in time<\/strong><\/p>

There are three key dates within a share allocation program involving the granting of stock option rights, with regard to their tax treatment:<\/p>

(a) The date of granting\/acquisition of the right: This is the point in time at which the option rights are granted by the company under the applicable plan.<\/p>

(b) The date of exercise of the right: This is the point in time at which the beneficiary acquires the shares upon payment of the preferential exercise price.<\/p>

(c) The date of transfer of the shares by the beneficiary: This is the point in time at which tax liability arises.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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When is the benefit from Stock Options taxed as capital gains and when as employment income<\/strong><\/p>

Income arising from the granting of stock options constitutes capital gains, which are taxed at 15% (or 5% for start-up companies), provided that the shares are transferred by the beneficiary after 24 months (or 36 months for start-up companies) have elapsed from the date the stock options were granted\/acquired. If the shares are transferred before the completion of the 24-month (or 36-month) period, the employee beneficiary will be taxed on employment income.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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How is the taxable benefit from exercising a stock option determined<\/strong><\/p>

In the case of stock options, income is determined as the benefit obtained by the beneficiary from acquiring the company\u2019s shares at a preferential price, which is lower than the share\u2019s value at the time the option is exercised. More specifically:<\/p>

(a) Where the shares are listed on a stock exchange, the taxable income arises from the difference between the closing price of the share on the stock exchange and the allocation price of the right (preferential share acquisition price).<\/p>

(b) Where the shares are unlisted, the taxable income arises from the difference between the share price based on the company\u2019s equity value at the time of exercise of the right (intrinsic share value) and the allocation price of the right (preferential share acquisition price).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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B. Stock Awards\/ Free Share Awards<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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What are the key points in time<\/strong><\/p>

There are two key dates within a free share allocation program, with regard to their tax treatment:<\/p>

(a) Date of allocation of shares to the beneficiary: This is the point in time at which the tax benefit arises.<\/p>

(b) Date of transfer of the shares by the beneficiary: This is the point in time at which tax liability arises.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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When is the benefit from a free share distribution taxed as capital gains<\/strong><\/p>

Income arising from the granting of shares under a free share allocation plan upon the achievement of specific targets or the occurrence of a specific event constitutes capital gains, which are taxed at a rate of 15%, provided that the shares are transferred at any time and in any manner after their acquisition by the beneficiary.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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How is the taxable benefit from the free allocation of shares determined<\/strong><\/p>

In cases of free share distribution, the capital gain, i.e. the taxable income, arises upon the transfer of the shares by the beneficiary and is determined as follows:<\/p>

(a) Where the shares are listed on a stock exchange, the taxable income is equal to the closing price of the share on the stock exchange at the time of the free allocation, provided that the sale price of the shares is equal to or lower.<\/p>

(b) Where the shares are unlisted, the taxable income is equal to the sale price or the value of the share, whichever is higher at the time of the free allocation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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What applies in the case of IKE companies<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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In the case of IKE companies, there is no statutory share distribution program, such as those provided for in Articles 113 and 114 of Law 4548\/2018 for SA companies, while at the same time an IKE is not permitted to acquire its own (treasury) shares. Consequently, the distribution of shares within an IKE company may be achieved through the following means:<\/p>

(a) By granting a contractual option right pursuant to an agreement entered into between the partners and the employees, which would include terms equivalent to those of a statutory stock option or free share distribution program, operating on a contractual basis.<\/p>

(b) By providing for in the articles of association and utilizing for this purpose shares carrying special rights.<\/p>

(c) By converting the IKE into an SA, so that, under its new corporate form, it may gain access to the stock option and free share distribution programs available to SA companies.<\/p>

A critical point is that the favorable tax treatment provided for in Article 42A of Law 4172\/2013 does not apply in the case of the allocation of company shares to employees by an IKE, where the provisions of paragraph 1 of Article 13 of Law 4172\/2013 regarding employee benefits in kind apply.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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In conclusion<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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The implementation of Stock Option and Stock Award programs requires a combination of corporate and tax planning, as the selection of the appropriate mechanism depends on the legal form of the company, the structure of the program, the capacity of the beneficiaries, and the tax regulations applicable in each case. Of particular importance is the accurate documentation of the program\u2019s terms, as well as the assessment of the tax implications both at the time of granting or exercising the rights and upon the transfer of shares. At Nexus Law Firm, we provide legal support to both companies and corporate groups wishing to design, implement, or evaluate Stock Options and Stock Awards plans, as well as to the beneficiaries of such programs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Keywords:<\/strong> Stock Options in Greece, Stock Awards in Greece, Stock Options Taxation, Stock Awards Taxation, Stock Option Right, Free Share Allocation<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

\u03a4\u03b9 \u03b5\u03af\u03bd\u03b1\u03b9 \u03c4\u03b1 Stock Options \u03ba\u03b1\u03b9 \u03c4\u03b1 Stock Awards \u03a4\u03b1 Stock Options \u03ba\u03b1\u03b9 \u03c4\u03b1 Stock Awards \u03b1\u03c0\u03bf\u03c4\u03b5\u03bb\u03bf\u03cd\u03bd \u03c3\u03cd\u03b3\u03c7\u03c1\u03bf\u03bd\u03b1 \u03b5\u03c1\u03b3\u03b1\u03bb\u03b5\u03af\u03b1 \u03b5\u03c0\u03b9\u03b2\u03c1\u03ac\u03b2\u03b5\u03c5\u03c3\u03b7\u03c2 […]<\/p>\n","protected":false},"author":2,"featured_media":2637,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nea"],"acf":[],"_links":{"self":[{"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/posts\/2636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/comments?post=2636"}],"version-history":[{"count":4,"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/posts\/2636\/revisions"}],"predecessor-version":[{"id":2641,"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/posts\/2636\/revisions\/2641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/media\/2637"}],"wp:attachment":[{"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/media?parent=2636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/categories?post=2636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nexuslaw.gr\/en\/wp-json\/wp\/v2\/tags?post=2636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}