San Marino: Investing
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 2022 World Investment Report 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 Italian Ministry of Foreign Affairs, the total stock of FDI held by Italy in San Marino stood at EUR 58.5 million as of 2021, while the stock held by San Marino in Italy reached EUR 420 million.
Lower corporate and income taxes (with a tax exemption of 50% for newly established businesses; a reduction of taxable income between 40-90% up to an amount equal to investments in capital goods or real estate), an efficient banking system (which also offers subsidised credit, although it is weekly capitalized according to Fitch Ratings), liberal labour laws, and an open market economy help attract FDI to San Marino. However, San Marino's small size, lack of natural resources, and geographic isolation make it a relatively unattractive destination for foreign investors. 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 | United States | Germany | |
|---|---|---|---|---|
| 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 | United States | Germany | |
|---|---|---|---|---|
| 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: November 2023
