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4 Ways to Get Residency in San Marino: Single-Digit Tax in the World’s Oldest Republic

San Marino offers many residency paths: elective for investors, entrepreneurial, atypical with reduced taxation, and atypical for retirees.

Valentino Coletto
Padua

The Republic of San Marino, which is 23 square miles and hosts a population of 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.

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. The Grand General Council, which includes 60 members that the population elects for five-year terms, governs the nation.

The Captains Regent, the two heads of state, maintain a direct line of communication with the republic’s citizens to ensure continuous, productive dialog between the population and top decision-makers.

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San Marino has a unique tax structure that distinguishes it from many other countries. For certain residents, pension taxation is set at 6%, while property owned for over five years is exempt from capital gains tax.

The country applies a 3% tax rate on foreign-sourced dividends and 8% on dividends and interest. Corporate entities face a standard tax rate of 17%, though the government may offer temporary reductions.

San Marino also offers specific tax rates for certified innovative startups. When it comes to profit distribution, the government taxes shareholders at a 5% rate, while non-individual entities enjoy a 0% rate.

Unlike many European nations, San Marino does not implement a Value Added Tax (VAT) system. Instead, it uses a “single-phase tax” that applies specifically to imports.

The government offers incentives for tax residents as well, especially for retirees, investors, and entrepreneurs.

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San Marino tax residency

San Marino allows foreigners to become tax residents if they meet the government’s requirements.

The Congress of State must approve all applications for tax residence. The government limits the quota for new tax residences, so applicants must prepare the necessary paperwork well in advance to apply.

The government adjusts the number of available places each year based on provisions in the current year’s budget.

Residency types

Elective residency

This option is open to investors who purchase a property with a minimum value of €500,000 or who make a ten-year term deposit for bonds that the San Marino government issues. The minimum term threshold is €600,000. There is also a fee of €10,000.

Elective residency card holders are eligible for a 3% tax incentive on dividends. 

Residency for entrepreneurs 

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

Atypical residency with reduced taxation

The government grants this type of residency to individuals who have never held tax residency in the Republic of San Marino or who have not yet finalized their registered residence in the country.

These applicants must generate income abroad, which incurs 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.

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 €50,000 (gross) or movable assets of at least €300,000. 

The government taxes pensions at 6% and calculates this tax on the gross pension income.

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

Main applicants can extend their San Marino residence permits to family members, including spouses, dependent children up to age 25, and disabled children.  

IMI Pros who can help with residency in San Marino


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