San Marino is open to foreign investments by also promoting ad hoc agreements and conventions with possible international investors. Its favorable geographic location, the excellence of its services and products as well as its potential for economic and technological growth make San Marino a solid partner in business initiatives.
Here is a summary of some competitive advantages San Marino offers its investors:
Streamlined decision-making process
A streamlined decision-making process joins entrepreneurs with San Marino’s institutions, translating innovative applications and ideas into an appropriate regulatory context.
Lively entrepreneur scene: Small and medium companies coexist with international businesses. From industry to commerce, farming and craftsmanship to tourism, financial services to high added-value sectors.
Less red tape
Thanks to contained expenses and less red tape, managing a business here finds valid support in San Marino’s Public Administration and in professionals who work in the Republic.
Fully integrated on an international level
San Marino boasts numerous bilateral and multilateral agreements and a well-structured diplomatic and consular corps. These elements, joined with the State’s sovereignty and small size, favor exchange between companies and the rest of the world by multiplying and encouraging business opportunities.
Competitive tax system
The “Imposta Generale sui Redditi” (General Income Tax) for companies is equal to 17% of tax profit;
San Marino grants new businesses a 50% tax exemption, and taxation equal to 8.5% of profit, plus exemption from paying the license issue/renewal tax for the first 3 years;
The income of individuals is subject to gradual tax rates ranging from 9% to 35%.
Additional incentives for all businesses:
- reduction of taxable income from 40 to 90% up to an amount equal to investments in capital goods or real estate;
- deduction of tax losses from taxable income (up to 80% of income);
- fully deductible costs with few limitations;
- dividends paid to individuals taxed at 5%;
- royalties paid to non-residents taxed at 20%.
The indirect tax rate on related goods and services imported into San Marino by businesses, called import tax or “single-stage tax,” is equal to 17%.
Reimbursement is possible in the event such goods are then exported.
For certain categories (e.g. food, medicine, etc.) differentiated rates are applied (e.g. 2%, 6%).