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Are our cross-border employee stock options taxed twice?

A

Your employee stock options vested across Spain and Portugal1 face dual taxation risk under each country's domestic rules. Your internal equity policy does not currently address the work-days apportionment formula required by the Treaty to Avoid Dual Taxation 2 which aligns with the concern raised in the October tax review call 3.

1 Internal Equity Compensation Policy – Stock Options

Internal

Tax Department · 2026

2 Convention to avoid double taxation (PT/ES)

Law

Resolução n.º 6/95 · DRE · BOE-A-1995-24001

3 Tax Review Call

Audio

Transcript · October 2025 · 11:47 min

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Analyse all uploaded stock option plans and flag required tax changes for 2026.

manage_searchAnalysing stock option plan documents…
account_treeCross-referencing 2026 tax requirements…
A

Found 6 plans · 3 flagged for tax update.

DocumentJurisdictionRisk
SOP_2023.pdfPTHigh
SOP_2024.pdfESMedium
ESOP_Policy.pdfEUNone
mailemail_tax_authority.docx
To  Autoridade Tributária (AT)Re  Stock Option Taxation ReliefFrom  Tax DepartmentDate  15 Jan 2026

Pursuant to the Internal Equity Compensation Policy, cross-border stock options granted to employees resident in Spain may be subject to dual taxation1. The PT–ES Convention (Resolução n.º 6/95) provides relief mechanisms applicable to vesting income and should be invoked at the competent authority level2. As discussed in the October 2025 Tax Review Call, a formal relief request is recommended before the Q1 filing deadline3.

JurisdictionVesting TaxTreaty ReliefAction
PTApplicableAvailableFile
ESApplicableAvailableFile
EUN/AN/ANone
check
3 sources verified · Equity Policy 2026 · Resolução n.º 6/95 · Tax Call Oct 2025

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Paula Gomes Freire

Today, given its quality and consistency, Affine has become an essential tool for VdA's teams, making them much more efficient in researching legislation and case law.

Paula Gomes Freire

Managing Partner, VdA

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legal_research.py — Affine SDK
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import os
from affine import AffineClient
 
# Initialise the Affine SDK
client = AffineClient(
api_key=os.environ["AFFINE_API_KEY"]
)
 
# Run a legal research search
results = client.research(
query="Are our cross-border employee stock options taxed twice?",
filters={
"jurisdictions": ["PT","ES"],
},
)
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