This study examines the legal framework surrounding employee stock options. The main focus is on their taxation in Sweden, in light of both national and EU laws. Employee stock option are a financial instrument that offers economic opportunities and cultivate loyalty between employee and employers. The legal framework in Sweden about employee stock options is relativety new and complex.

The Swedish legislative enviroment for employee stock option presents with challanges, this study aims to suggest improvements to the Swedish tax legislative. Improvements to enhance the principles of legal certainty and predictability. The thesis uses a legal dogmatic method, focusing on case law, statutes and doctrinal writings. The method used to identify potential enhancements for the Swedish law is a comparative analys with the Irish legal system.

The findings in the Irish system have potential benefits of adopting in the Swedish system but there is also difficulties applying them into the Swedish legislation. Mainly because of the differences between both countries when it comes to the taxation systems. Mainly because of the differences between both countries when it comes to the taxation systems. Due to the high tax rate in Swedish income tax, employees are at risk for potential financial loss as a result of the implementation of the Irish employee stockoption systems, primarily due to the fact that their investment on the options are taken directly from their salaries with no guarantees that the options are profitable. A risk most employees don’t necessarily want to make. 

However, by exploring possibilities of implementing aspects of the Irish tax models around tax-free employee stock options, a middle ground can be created that is compatible and swiftly works within Swedish tax law. In that way, legal certainty can increase, and business growth can advance by favorable taxation laws. In the way the legislation was intended to do in the first place. By making the legislation more understandable, with less room for interpretation and increased obligations for employers, this can provide a more predictable and secure system for all parties involved.