Verified Facts
The tax rates in San Marino range from 3% to 40% for personal income, with a corporate tax rate of 8.5%, and a standard VAT rate of 17%, making it a relatively low-tax jurisdiction in Europe.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
San Marino has a territorial taxation system, meaning that only income earned within the country is subject to taxation, with some exceptions for worldwide taxation of residents. To be considered a tax resident in San Marino, an individual must have their domicile or residence in the country, which is determined by factors such as the location of their home, family, and business activities. Generally, individuals who spend more than 183 days in a calendar year in San Marino are considered tax residents.
The tax system in San Marino is relatively straightforward, with a focus on simplicity and efficiency. The country has a tax authority, the Agenzia delle Entrate, which is responsible for collecting and administering taxes. San Marino also has a tax treaty network with several countries, which helps to prevent double taxation and promote international trade and investment. The tax year in San Marino runs from January to December, and tax returns are typically due by the end of June of the following year.
Personal Income Tax
| Income Bracket (EUR) | Tax Rate |
|---|---|
| 0 - 10,000 | 3% |
| 10,001 - 20,000 | 10% |
| 20,001 - 30,000 | 15% |
| 30,001 - 50,000 | 25% |
| 50,001 and above | 40% |
| Personal income tax in San Marino is relatively low, with a progressive tax system that applies different tax rates to different income brackets. Taxpayers are also entitled to various deductions and allowances, such as a personal allowance of EUR 10,000, and mortgage interest relief. Tax returns must be filed electronically by the end of June of the following year, and taxpayers can choose to file jointly with their spouse or separately. |
Corporate & Business Tax
- The corporate tax rate in San Marino is 8.5%, which is relatively low compared to other European countries.
- Small businesses with annual turnover of less than EUR 100,000 are eligible for a reduced corporate tax rate of 5%.
- San Marino has several free zones, including the San Marino Free Zone and the Rovereta Free Zone, which offer tax incentives and streamlined regulatory procedures for businesses.
- Companies must register with the Chamber of Commerce and obtain a tax identification number before commencing business activities.
- Companies are also required to file annual financial statements and tax returns with the tax authority.
VAT / Sales Tax
- The standard VAT rate in San Marino is 17%, which applies to most goods and services.
- A reduced VAT rate of 5% applies to certain goods and services, such as food, books, and pharmaceuticals.
- Some goods and services, such as financial services and real estate transactions, are exempt from VAT.
- Tourists can claim a VAT refund on certain purchases, such as luxury goods and souvenirs, under the Tourist Refund Scheme.
For Expats & Foreign Workers
- Tax residency rules in San Marino are based on the 183-day rule, which means that individuals who spend more than 183 days in a calendar year in the country are considered tax residents.
- San Marino has double taxation treaties with several countries, including Italy, Austria, and Germany, which help to prevent double taxation of income.
- Expats and foreign workers are required to register with the tax authority and obtain a tax identification number before commencing work in San Marino.
- Expats and foreign workers may be eligible for social security benefits, such as pension and healthcare benefits, under the social security agreement between San Marino and their home country.
- Expats and foreign workers are also subject to remittance rules, which require them to report and pay tax on income earned outside of San Marino.
- Expats and foreign workers may be eligible for a foreign earned income exemption, which allows them to exempt a portion of their foreign-earned income from taxation.
Crypto & Investment Income
- Investment income, such as dividends and interest, is taxed as ordinary income in San Marino, with tax rates ranging from 3% to 40%.
- Capital gains from the sale of securities and other assets are also taxed as ordinary income, with tax rates ranging from 3% to 40%.
- Cryptocurrency is considered a financial asset in San Marino, and is subject to capital gains tax when sold or exchanged.
- Dividends received from San Marino companies are subject to a withholding tax of 5%, which can be reduced or eliminated under a double taxation treaty.