ESOP/PSOP for Startups

Compared to other countries, Switzerland’s legal and tax framework in regards to ESOP and PSOP is less favorable for startups. While many nations offer targeted incentives to support innovative companies and attract top talent, Switzerland still poses regulatory and fiscal hurdles that particularly disadvantage young and high-growth businesses. 

For instance, while tax rulings in Switzerland offer a way to gain clarity on employee share taxation, their cantonal nature can lead to inconsistency and legal uncertainty. This fragmented system poses challenges for young companies seeking predictable tax treatment for equity-based compensation.

We’re fighting for a more competitive and innovation-friendly environment for startups in Switzerland. To achieve this, we need simpler, more attractive frameworks for implementing employee participation programs like ESOPs and PSOPs. This can be achieved through the following measures:

• Align with proven international best practices to attract top talent and boost innovation.
• Promotion of clear and reliable conditions for ESOP and PSOP in Switzerland.
• Reduce administrative barriers to implementing employee equity programs.

A thriving startup ecosystem depends on clear, consistent, and supportive policies—and we’re committed to making that a reality.