Move to San Marino and become tax resident

San Marino is one of the smallest states in the world. It is located in Southern Europe and is surrounded on all sides by Italy. The country is not part of the European Union but has open borders with it. At the same time, it is part of the Eurozone.

Why you should get a residence permit in San Marino

It makes sense to obtain a residence permit or permanent residence in San Marino for the following reasons:

Reducing the percentage of taxes (pensioners and entrepreneurs)

The private pensions of atypical pensioners resident in San Marino are taxed at a rate of 6% on the gross pension.

As for corporate taxes, newly established companies in San Marino are subject to a reduction in the original rate for the first 5 years, corresponding to 8.5% (ordinary rate: 17%).

Profits distributed to shareholders are taxed at 5%.
Profits paid to entities other than natural persons: withholding tax 0%.

Available social programs

Citizens of San Marino, as well as foreigners who have the right to reside in the country, receive quality free medical care. In addition, children have access to free education.

Types of residence permits

Residence permits are granted for long-term stays in the territory. The types of residence permits that may be applied for are the following:

1. REGISTERED RESIDENCE FOR ENTREPRENEURS

1) Residence for economic reasons: entrepreneurs who hold at least 51% of the share capital can request residence for economic reasons provided that they hire staff from the start-up list and establish a guarantee deposit in favor of the State.

2) Startup residency: directors and partners who are employees of companies that qualify as “high-tech startups” can obtain residency for themselves and their family members.

4) Automatic residence: for investment projects in certain sectors to be favored in the Republic of San Marino. This type of residence is obtained by setting up a joint-stock company, hiring at least 5 employees and purchasing a property or a financial lease.

2. ELECTIVE RESIDENCE

For foreign nationals wishing to establish their residence in San Marino, who make and maintain a property or financial investment, according to the rules set by law.

This type of residence allows you to access a preferential tax rate of 3% on dividends.

Foreign applicants must hold a health insurance policy, cannot work for the overall public sector nor benefit from State contributions.

After 10 years, elective residence change into registered residence permits, with all relevant rights.

3. ATYPICAL RESIDENCE SUBJECT TO A FACILITATED TAX REGIME

It is envisaged for foreign citizens who intend to take up their abode in San Marino, who have never resided in the Republic for tax purposes or who have not yet obtained, at the date of entry into force of Law no. 223/2020, the final registered residence in the territory, and who generate income abroad.

In relation to income produced abroad, a substitute tax is due for the general income tax of natural persons equal to 7% with a minimum amount of 10,000 euros and a maximum of 100,000 euros for each fiscal year of the period of validity of the residence.

Applicant foreigners must have a health insurance policy, are not eligible for employment in the Overall Public Sector and do not receive any form of contribution from the State. After 10 years, they are entitled to be granted registered residence and the related rights.

4. PENSIONERS’ ATYPICAL RESIDENCE

It is envisaged for foreign citizens who come from EU countries, Switzerland and countries established by a specific Congress of State Regulation, who intend to take up their abode in San Marino, who have never been resident in the Republic or have not yet obtained, at the date of entry into force of Law no. 223/2020, the final registered residence in the territory, and who generate income abroad according to the terms established by law.

Applicant foreigners must have a health insurance policy, are not eligible for employment in the Overall Public Sector and do not receive any form of contribution from the State. After 10 years they are entitled to be granted registered residence and the related rights.

The private pensions of atypical pensioners resident in San Marino are taxed at a rate of 6% on the gross pension.