San Marino: Investir
FDI in Figures
FDI is considered an essential component to support San Marino's transition to a more diversified economy as the country usually receives portfolio investment instead of direct investment that would target the non-financial sector. Official FDI information on San Marino is not available in the World Investment Report 2023 published by UNCTAD. Main investment sectors include ceramics, tiles, and furniture manufacturing, coming mainly from Italy and China. According to the latest available data from the European Commission, the total stock of FDI held by EU countries in San Marino stood at EUR 0.6 billion as of 2022, while the stock held by San Marino in the EU reached around EUR 200 million.
An efficient banking system (which also offers subsidized credit, although it is weekly capitalized according to Fitch Ratings), liberal labor laws, and an open market economy help attract FDI to San Marino. Moreover, the small country boasts a competitive tax system, featuring a 17% flat tax on single imports, a corporate tax rate ranging from 8.5% to 17%, and a corporate tax rate of 0-8% specifically tailored for exceptionally innovative enterprises. Personal revenue tax rates in the country span from 9% to 35%. Investments in various sectors are growing, particularly in hospitality, leisure, health infrastructure, nutraceuticals, digital services, FinTech, HealthTech, and GreenTech (U.S. Department of State). However, San Marino's small size, lack of natural resources, and geographic isolation make it a relatively unattractive destination for foreign investors. Foreign investors interested in San Marino real estate are subject to specific guidelines outlined in Article 51 of San Marino Law No. 173 of December 24, 2018. These guidelines streamline property acquisitions, eliminating the need for special authorization from the government. Notably, San Marino imposes no nationality-based restrictions on property ownership, fostering an inclusive investment environment. Foreign citizens seeking residence for economic reasons in San Marino can do so by establishing or acquiring a company within the country. To qualify, the applicant must hold a minimum of 51% ownership in the company and commit to employing one to three resident workers on open-ended contracts, depending on the sector's encouragement status. Additionally, they are required to make an annual contribution for healthcare and social security benefits. At the time of application, a secured bank deposit of EUR 75,000 is mandatory, which must be increased to EUR 150,000 within two years of obtaining residency. Alternatively, this deposit can be replaced by purchasing real estate with a lien in favor of the State, or by a bank or insurance guarantee issued by a supervised entity in San Marino. Further information can be found on the website of the country’s Economic Development Agency.
Country Comparison For the Protection of Investors
| San Marino | Eastern Europe & Central Asia | Estados Unidos | Alemanha | |
|---|---|---|---|---|
| Index of Transaction Transparency* | 3.0 | 7.5 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 2.0 | 5.0 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 8.0 | 6.8 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
Tax Rates
- Value Added Tax (VAT) or "Monofase" - Imposta sul Valore Aggiunto (Local Name)
-
17% (applied as a single-phase tax on all imports instead of VAT).
certain basic products are subject to a 2% rate (milk, butter, vegetables, wheat, olive oil, pasta, etc.). Animal meat, tea, oats and other goods are taxed at 6%.
New cars are taxed at 7%, used cars at 3.5%. - Company Tax
- 17%
- Withholding Taxes
- Dividends: 0%/5% (individual), Interests: 5%/11%/13%, Royalties: 5/20% (non-resident).
- Social Security Contributions Paid By Employers
- 27.4% in total (16.1% for pension fund)
- Other Domestic Resources
- Governmental Portal
- Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
- Tenders, Projects and Public Procurement
-
DgMarket, Tenders Worldwide
Individual Taxes
| Personal income tax (IGRI) | Progressive rates from 9% to 35% |
| Up to EUR 10,000 | 9% |
| EUR 10,001 - 18,000 | 13% |
| EUR 18,001 - 28,000 | 17% |
| EUR 28,001 - 38,000 | 21% |
| EUR 38,001 - 50,000 | 25% |
| EUR 50,001 - 65,000 | 28% |
| EUR 65,001 - 80,000 | 31% |
| EUR80,001 and above | 35% |
Country Comparison For Corporate Taxation
| San Marino | Eastern Europe & Central Asia | Estados Unidos | Alemanha | |
|---|---|---|---|---|
| Number of Payments of Taxes per Year | 18.0 | 13.9 | 10.6 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 52.0 | 226.2 | 175.0 | 218.0 |
| Total Share of Taxes (% of Profit) | 36.2 | 36.5 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
Investment Opportunities
Business Setup Procedures
| Setting Up a Company | San Marino | Eastern Europe & Central Asia |
|---|---|---|
| Procedures (number) | 7.00 | 5.26 |
| Time (days) | 11.50 | 11.78 |
Source: Doing Business.
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Latest Update: May 2024
