In its tax reforms at the beginning of the year, Spain introduced a number of changes.
In particular, the 40 percent tax relief available to irregular income (that is, income that is generated over more than two years, not incurred on a regular or recurring basis) has been replaced by a 30 percent reduction. This 30 percent reduction is available if income is received in the same tax year and the individual has not applied for the reduction in the last five years.
Although in its draft tax reform package Spain proposed to completely remove the exemption for the first €12,000 of income realised from share settled compensation, its final package does not remove the exemption, but does modify the eligibility conditions required to qualify for the exemption.
Now, for the exemption to apply, all employees in the company must be offered participation in the plan (previously, it was not necessary for the plan to be available to all employees, but rather to all individuals within the same category/grade of the company).