On 26 May 2023, Law no. 21/2023 of 25 May came into force, establishing the regime applicable to Startups and Scaleups and amending the Personal Income Tax Code, the Tax Benefits Statute and the Investment Tax Code.

This Law is designed to ensure that companies are recognised as Startups and Scaleups, introducing their legal definitions as well as the concept of Business Angels. The aim of this Law is to promote national entrepreneurship and define specific investment policies, seeking to guarantee efficient conditions for the establishment and maintenance of Startups on national territory, by fostering a growth-oriented economy based on digitalisation and innovation.

Given the preference for remuneration schemes based on options to acquire shareholdings, a key aspect for attracting and retaining highly qualified professionals in the technology sector, it is guaranteed that taxation only takes place when the income is actually realised. For this reason, this law is also known as the Stock Option Law.

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