4 ways to get residency in San Marino

The Republic of San Marino

The Republic of San Marino (23 square miles, population about 33,000) is located in the center of the Italian peninsula and is less than 6 miles from the renowned coastline known as the Riviera Romagnola.

The Republic of San Marino is a full member of the United Nations, the International Monetary Fund, the International Court of Justice and the Council of Europe. 

San Marino is also the oldest republic in the world. It is governed by the Grand General Council, composed of 60 members elected to five-year terms. 

Dialog between citizens and top decision-makers is made easier by the possibility to communicate directly with the Captains Regent. 

San Marino Residency

Why relocate to San Marino

The advantages of becoming a resident of San Marino are mainly economic:

• Taxes on pensions for retirees granted atypical residency: 6%. 
• Capital gains tax exemptions for property held for more than 5 years;
• Tax rate at 3% on foreign-sourced dividends;
• Tax rate at 8% on foreign-sourced interests and capital gains (except for atypical residencies);
• 7% general substitute tax on personal income for atypical residencies (minimum tax is €10,000 while the maximum tax is €100,000);
• Corporate tax rate: reduced to 8.5% for 5 years, ordinary tax rate of 17%;
• Taxation of income produced by innovative start-ups: 0% for the first 4 years, 4% for the next 4 years, and 8% for the next 5 years (highly innovative enterprise certification must be obtained to enjoy these benefits);
• Profits distributed to shareholders are taxed at 5%.
• Profits paid to entities other than natural persons: 0% taxation.

There is no VAT in San Marino, however, there is a “single-phase tax” that applies to imports. 

Tax residence in San Marino

The Republic of San Marino allows foreigners to become tax residents, offering attractive tax incentives for retirees, entrepreneurs and investors. 

Obtaining tax residence in San Marino requires approval by the Congress of State. The number of places is limited, and the necessary paperwork must be prepared well in advance in order to become a tax resident of San Marino.

The number of available places changes from year to year based on the government’s provisions through the current year’s budget. 

4 types of residencies:

1. Elective residency

Aimed at investors who purchase a property with a minimum value of €500,000 or who make a 10-year term deposit for bonds issued by the San Marino government. 

The term deposit required to obtain elective residency is €600,000. There is also a fee of €10,000;

This type of residency will grant the 3% tax incentive on dividends. 

2. Residency for entrepreneurs 

This type of tax residency is aimed at entrepreneurs who hold at least 51% of a company’s capital stock, hire San Marino employees and make a guarantee deposit with the state, or for directors and partners of companies defined as “hi-tech” or for entrepreneurs who launch an investment project in certain sectors of particular interest to the Republic. 

3. Atypical residency with reduced taxation

This type of residency is granted to individuals who have never been tax residents in the Republic of San Marino or who have not yet obtained their final registered residence in San Marino. 

These applicants must generate income abroad, which is subject to a 7% general substitute tax on personal income.

The minimum amount of tax due for atypical residency with reduced taxation is €10,000 while the maximum tax is €100,000;

4. Atypical residency for retirees 

Atypical residency for retirees is for foreign retirees in the private sector who can demonstrate an annual income of at least €120,000 (gross) or movable assets of at least €500,000. 

Retirement income is taxed at 6%, to be calculated on the gross pension income. 

If the applicant is a retiree who has served as an executive or official of an international body and has a demonstrable annual income of at least €100,000.00 (gross) per year, the general income tax is 3%.

All San Marino residence permits can be extended to family members: spouses, dependent children up to age 25, and disabled children. 

How to obtain residency in San Marino

In order to obtain residency in San Marino, it’s essential to have a direct relationship with professionals who specialize in relocation in the Republic, prepare the necessary paperwork for the type of application you’re interested in well in advance (with legal validation and sworn translation), to find a lease of at least one year or purchase a property, open a bank account, and then wait for the outcome of the application. 

Contact us for more info!