Time to Stock Up - Portugal’s Secret Weapon for Talent Retention
A simplified, tax-efficient regime helping Portuguese startups, SMEs, and R&D-driven companies attract and retain top talent through equity incentives.
Since 2023, Portugal has been offering a favourable tax regime to boost the competitiveness of startups, SMEs, and R&D-intensive companies. This regime makes share-based compensation far more attractive for both companies and talent — helping businesses recruit and retain the best professionals.
Who Can Benefit?
Employees or board members of:
- Startups (as defined in Law 21/2023)
- Micro, Small and Medium-sized Enterprises (SMEs) or Small Mid-Caps
- Companies with ≥10% of annual turnover or costs in R&D
Covered Income
- Gains from option, subscription, or allocation plans for securities or equivalent rights
- Gains from sale, cash settlement, buyback, or paid waiver of those rights
- Gains realised after leaving the company are also covered
Tax Benefit Overview
Exclusions
- Holders of ≥20% of share capital or voting rights
(unless the company is a startup, micro, or small enterprise)
Company Responsibilities
- Must confirm in writing (upon request) that it meets legal requirements
- Can be subsidiarily liable for unpaid tax if confirmation is false or no reply is given within 90 days
Which Stock Plans Are Covered?
- Stock plans issued after 1 January 2023
- Also applies to certain plans approved before 31 December 2022, under specific conditions
Why This Matters
This 14% flat tax rate combined with tax deferral and eligibility for a broad range of innovative companies makes Portugal one of the most attractive European destinations for stock option and stock grant plans. It’s a win-win for talent retention and startup growth.
Accolades from
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I was very impressed by the vast amount of knowledge Luís possessed, both in terms of theoretical knowledge of the Portuguese Fiscal Law.
Leonardo Bertolini Zichy Thyssen
IE Business School
Luis is really great expert in taxes. He is fast, furious and totally client oriented. I highly recommend Luis for all who need to clarify tax strategy in Portugal.
Anton Voroniuk
SaaS Growth & GenAI Expert
I am eternally grateful to Luis and look forward to working with Luis for many years to come.
Kathryn Murphy
Global Director of Partnerships at World Connect, Inc.
They say "Your network is your Net worth". Well, consider yourself a rich man if Luis is in any way part of your network.
Ella Grobler
Property Investor and Developer at Rouge Homes Ltd
Luis is knowledgeable, sharp and a pleasure to work with.
Chris Gourlay
Strategy & Innovation Consultant | Founder of Spacehive
He has been extraordinarily responsive and impeccably detailed while conveying the many laws and procedures in an easily understandable manner.
John Sumners
Journalist, Author
Luis Castilho is an extremely efficient, responsive, highly qualified, professional that I have had the pleasure to work with.
Melinda Given
Senior Medical Science Liaison
Luis provides a very professional service, his fees are appropriate and he goes out of his way to assist.
Peter Lunning
Independent consultant
Simples, Rápido e Bastante Profissional.
Hugo Espada
Nova Frigo S.r. l. Spain & Portugal Sales Manager
Luis is the best tax law professional that I have worked with.
Roger Graves
CTO at Cloverpop
Quick, smart, practical.
Maxim Sokiran
Legal and PR Expert
Luís is an outstanding Tax Lawyer, reliable and fully dedicated to his clients. I highly recommend Luís.
David Vicente
DVM, MVSc, PhD, MRCVS, Assistant Professor
He provides high level, timely and outstandingly customer centered tax advices.
Francesco Bax
Executive Leader
Luís Castihlo is hands down one of the best lawyers and tax experts I've ever worked with!
Florian Kaiser
CEO at Inbox Marketing
Working with Luis has been an exemplary experience in navigating Portuguese tax complexities.
Eliot Raymond
Product Lead @ A.Team | Marketing | Growth
Luis Castilho is an excellent tax lawyer. His speed of delivery, deep insights, and presentation skills are truly impressive.
Oleksandr Pysaruk
CEO at Raiffeisen Bank
Ultimately I was able to confidently make an informed tax decision. I have recommended Luis to several friends and co-workers and will definitely continue to do.
Daniel Lourenço
Sr. Director
Honest, highly qualified in Portuguese tax law, deadline maniac and a great guy. Pleasure to work with. Highly recommended.
Maxim Shkolnick
General Partner @ Focus Estate Fund
Integridade e foco em ajudar o cliente insuperável.
André Rodrigues Lopes
General Manager at Datahouse Portugal
I rarely write reviews, but I felt compelled to do this one. Luís Castilho is an excellent professional, very responsive, knowledgeable and thoughtful.
Indira Gomes
Legal Counsel at African Legal Support Facility
I am very happy that he is responsive and I would certainly recommend his services to others.
Steve Howard
Entertainment Promoter/Producer/Consultant
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