Investing

flag San Marino 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.

 

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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.
 
 

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.

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Investment Opportunities

Tenders, Projects and Public Procurement
DgMarket, Tenders Worldwide
 

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