Want to pay yourself a higher net salary? You can do so through stock options
May 2026 - As an SME manager, you probably often wonder: how can I withdraw funds from my company in a tax-efficient way? Stock options—often in the form of warrants—have long been considered an attractive alternative to traditional compensation or dividends. But new rules have been in effect since early 2026.
For example, a maximum of 20 percent of the gross compensation package may consist of lump-sum benefits of any kind. Does this mean the end of the appeal of stock options? Not necessarily, though it does require more thoughtful decisions.
What makes stock options attractive?
Stock options give you the right to buy shares within a certain period at a predetermined price. In practice, warrants are often used: financial instruments that companies grant as a bonus. The major advantage lies in the tax and parafiscal treatment. No social security contributions are due on these instruments for employees, leaving a larger portion of the bonus as net income.
In many cases, the warrants are sold immediately after being granted. This way, you avoid the risk of stock market declines and do not realize any capital gains, meaning no capital gains tax is due. The result: an efficient way to convert a bonus into net income.
At growth companies, stock options on company shares are often used to retain talent. Employees typically receive these options for free, pay tax only on a limited lump-sum benefit, and owe no social security contributions. After a few years, they can exercise the options, often with a significant increase in value. And in this case as well, without capital gains tax.
Also for directors operating through a corporation
Stock options also offer attractive opportunities for business owners operating through a corporation. Your corporation can purchase or grant options, and the cost of doing so is—provided it is properly justified—fully tax-deductible. The options are then granted free of charge, after which you are taxed on a lump-sum benefit-in-kind.
That benefit is calculated based on the term of the options: for example, 23% for a ten-year term or 28% for a fifteen-year term. Social security contributions are due on that lump-sum amount. After a one-year waiting period, the options can be sold at market value, without capital gains tax. This allows you to withdraw cash from your company in a relatively cost-effective manner.
An Alternative to Dividends?
Stock options are often compared to dividends, and for good reason. Traditional dividends are first taxed at the corporate level and then again through withholding tax. In many cases, stock options offer a more favorable net return, with estimated returns ranging between 70% and 75%.
Moreover, the waiting period is relatively short. While other methods, such as the liquidation reserve, require a waiting period of several years (currently five years), one year is usually sufficient for stock options. This makes them flexible to use within a broader compensation strategy.
New Rules and Key Considerations
Starting in early 2026, you must take into account an important restriction: lump-sum benefits of any kind—including stock options—may not exceed 20% of your total gross compensation package. If you exceed that limit, your company will lose the reduced tax rate and the tax burden will increase.
In addition, a solid justification remains essential. You must be able to demonstrate that the granting of stock options constitutes compensation for performance. Without that link, you risk the tax authorities rejecting the deductibility, which could undermine the entire structure.
Finally, there is the market risk. During the mandatory one-year vesting period, the value of the options remains dependent on the stock market. Poor performance can reduce the ultimate return.
Conclusion: consult thoroughly with your accountant or an expert in this compensation technique to avoid all potential risks.
