Country Profile Republic of San Marino

A strategic geographic position

In Southern Europe, an enclave in central Italy overlooking the Adriatic Sea, San Marino has a territory of 61km2 and about 33,000 inhabitants. San Marino can be easily reached, being just 25 km from the International Airport Rimini - San Marino, 110 km from Ancona Airport and 130 km from Bologna Airport, having excellent connections with all major European cities.
An aerodrome with a 650-metre-long grass airstrip is present on its territory.
Moreover, the city of Rimini, besides a wellconnected railway station, hosts one of the most beautiful and avant-garde tourist harbours in the entire Mediterranean, with 622 moorings and a mirror of water of over 100,000 m2.
The Italian seaports of Ancona and Ravenna are 120 km and 86 km away respectively.

A successful choice

The Republic of San Marino presents itself to the international community as a privileged platform for the development of investment projects and as an interesting partner for economic activities based on competitiveness and innovation. A favourable environment for foreign investments is guaranteed, among others, by:
• Institutional and social stability.
• A rule of law system.
• Compliance with the most advanced international standards.
• Flexibility and speed of internal decisionmaking processes.
• Tailored solutions to meet investors’ needs.
• A solid banking and financial structure.

Why investing in San Marino at a glance

A competitive tax regime

• Newly established companies are entitled to:
-- 8.5% corporate income tax for the first six years of business (regular tax rate is 17%).
-- 5% withholding tax on dividends distributed to individuals.
-- Business license fee exemption for the first four years.
• Tax reductions on profits reinvested i n technolog ical i nnovat ion, acquisition or restructuring of business proper ties and in case of energy saving and R&D investments.
• No VAT on goods and services but a single-stage tax applied to impor ts. Standard rate is 17% but reduced rates are envisaged for specific categories. A 1% tax rate is applied to operating assets. Reimbursement is envisaged when such goods are subsequently exported.
• Fiscal incentives up to 60% of the gross salary and social security tax cont r ibut ions in case of employment of workers from labour mobility lists or staff retraining.
• A dramatically facilitated tax treatment for high tech start-up companies including the possibility to subscribe a contract with the Incubator of the Techno Science Park, a 5-year total corporate income tax exemption, paying-up of share capital in 3 years, 5% general income tax exemption for individuals and companies providing contributions to such companies, license fee exemption, special stay permits for foreign staff.

Additional benefits for foreign investments

Acquisition of registered residence for entrepreneurs and/or top management and family members.
Special terms for settlement in case of business projects of considerable value.

Simplified procedures and clear timing for obtaining a license

Business licenses immediately available through the official portal of the public administration (ATECO Codes) and all necessary self-certifications and statements certifying compliance with law requirements checked within maximum 180 days.

Qualified, competitive and flexible labour market

A highly educated and trained population meeting the demand for professional workers. Possible staff hiring through nominal call.
Public service for matching job offer and demand and online job matching.

A solid banking and financial system

Combining the traditional retail and private banking activities with new products and services, the banking and financial system meets the needs of all types
of customers looking for tailor-made solutions and businesses operating at international level.

Fully integrated in the international community

• Diplomatic relations with 120 Countries.
• Member State of the major International Organisations, such as the United Nations Organization and its institutions, including IMF, World Bank and WHO, OSCE and
Council of Europe, including GRECO and Moneyval, and of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes.
• 29 agreements on exchange of information in tax matters (TIEAs) and 20 agreements for the avoidance of double taxation (DTAs) in compliance with the current OECD standards as well as 9 agreements for the Promotion and Protection of Investment (PPI). As of February 2015, 17 DTAs (Austria,Barbados, Belgium, Croatia, Cyprus, Georgia, Greece, Hungary, Italy, Liechtenstein, Luxemburg, Malaysia, Malta, Qatar, Romania, Seychelles, St. Kitts and Nevis) and all the PPI agreements are in force.
• A “Largely Compliant” rating by the Peer Review Group of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
• An AML/CFT regime in line with FATF recommendations and relevant EU directives.
• A Cooperation and Customs Union Agreement with the European Union in force since 2002 and an Association Agreement under negotiation. A new Monetary Agreement with EU in force as of 2012 and participation in the Single Euro Payments Area as of 2014.
• Many bilateral agreements in force with Italy, including a DTA and an Economic Cooperation Agreement covering many fields.

High standards in health, security, environmental protection, education and quality of life

San Marino is considered a paradise in terms of security and quality of life, also thanks to a low criminality rate.
A State Hospital guarantees high quality services to all residents free of charge. A small high-quality University plays an important role in supporting business
activities, innovative projects and training programmes.

An international dimension

On account of annual tourist flow of more than 2 million visitors, of a significant presence of foreign companies and of an increased participation in global fora, over
the years San Marino has developed an international dimension, which has led to the teaching of the English language starting from primary school.

Nominal GDP (millions of Euros) year 2015: 1,415.4

                        Percentage contribution of economic sectors to GDP

Web links:

Ministry of Foreign Affairs, Political Affairs and Justice

Ministry of Internal Affairs, Public Sector, Relations with the Township Councils, Regulatory Simplification, Institutional Affairs, Peace

Ministry of Finance and the Budget, Posts, Transport, Economic Planning

Ministry of Industry, Handicraft, Trade, Labour, Cooperation, Telecommunications

Ministry of Territory and Environment, Agriculture, Tourism, Civil Protection and Relations with the Public Works State Corporation, Youth Policies

Ministry of Education, Culture and University, Research, Information, Sport, Technological Innovation, Relation with the Public Utilities State Corporation

Ministry of Health and Social Security, Equal Opportunities, Welfare and Social Affairs



Republic of San Marino

Palazzo Begni, Contrada Omerelli n. 31 - 47890 San Marino -
T +378 (0549) 882 302
F +378 (0549) 882 814