Overview of ESOP regimes in Central Europe
Comparative analysis in 15 jurisdictions
Are you looking for new ways to increase employee motivation? Are you considering implementing an employee stock plan, but wondering whether it is the right fit for you?
In recent years, it has become increasingly common for employers to link employee remuneration to business goals through Employee Stock Ownership Plans (ESOPs). So, what are the benefits of ESOPs and why are a growing number of companies finding them attractive?
Download our overview covering ESOP regimes across 15 Central European jurisdictions, including Albania, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Kosovo, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, and Ukraine.
We hope you will find this overview interesting and helpful to your work.
Read Overview of ESOP regimes in Central Europe
Central Europe market experience
Our analysis shows that, in most CE countries, the viability of employee stock ownership plans depends on the legal and tax treatment of this benefit.
While some countries such as Austria are already streets ahead in this department, most others are still working to create a favourable tax regime or, in many cases, a bespoke corporate law regime.
Our analysis also makes clear that this incentive – which gives employees a direct stake in their employer's success and which has been more widely adopted in other global regions – is considered a key legislative priority in several countries.
Here are some key findings:
- 9 countries have a favorable tax regime for ESOP shares.
- 12 countries have legal frameworks regulating ESOPs.
- In 14 countries there are legal and tax consequences when implementing ESOPs from a foreign HQ.
- 14 countries do not have any specific regime for phantom share plans.
- 7 countries have a specific corporate law regime for ESOP shares.
For more details, read our country-by-country overview!
