France
Employee Equity in France
French startups benefit from BSPCE, a founder-friendly warrant regime unavailable in most other European countries, alongside AGA free share plans and traditional stock options. Choosing between them depends on company eligibility, employee residency, and the tax outcome each produces.
French employee share scheme guides
Employee Equity
French law offers three main routes to employee equity: BSPCE warrants, AGA free share attributions, and classic stock options. Most eligible startups default to BSPCE because of its simple mechanics and favourable tax treatment for employees.
Stock Options
French stock options, options de souscription or d'achat d'actions, give employees the right to acquire shares at a fixed price. They are available to a wider range of companies than BSPCE but come with a less favourable tax profile for employees.
BSPCE
BSPCE are warrants available only to qualifying young, unlisted French companies, giving employees the right to subscribe for shares at a fixed price with favourable tax treatment on the resulting gain. They are usually the first choice for eligible French startups.
Equity Tax
French employee equity gains can be taxed under several different regimes depending on the instrument, with BSPCE generally the most favourable, AGA free shares subject to their own acquisition gain rules, and stock options taxed closer to ordinary income.
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