I am trying to sort out a similar situation, and have some open questions,
- Let's say either part or full quota of your share options (these are not common shares) are vested. I assume no tax is enforced at this point in time, or? I did read somewhere that in Germany, once your options are vested you need to pay the tax immediately. Sounds odd.
- If you exercise part of the above options, then in the above example by OP, you could potentially gain 2500 EUR, however, remember you haven't sold the shares (not options anymore) yet to get those 2500 EUR. In this case, you will already be taxed after only exercising?
o - Here the tax is income tax, if I am not wrong
- Finally, you decide to sell the, already exercised, shares. Now you really get the 2500 EUR. Do you have to pay another tax, if you did that already in point 2 above?
(I imagine if you sold them for 2700 EUR now, then additional 200 EUR should be taxed, but not the entire 2700 surely, as you already paid for the 2500 EUR in point 2, or?)
o - Here the additional tax (on 200 EUR) is capital gains tax if I am not wrong.
Based on above, if you are taxed at exercise, then doesn't it make sense to exercise as early as possible to have a lower income tax burden. As in this case later you will only pay much lower capital gains tax flat rate?