Taxation in San Marino

Standard Corporate Tax Rate in San Marino

Corporate tax rate applicable to sole proprietorships and self-employed (as an alternative to the progressive income bracket taxation) and to companies is equal to 17%.

New businesses are entitled to a tax exemption equal to 50% of the ordinary taxation for the first 5 years of operation, which reduces taxation to 8.5% of income.

Innovative Businesses Taxation

nnovative businesses in the fintech, blockchain, or other areas that are a part of the San Marino Innovation program are entitled to the following tax benefits during the duration of 12 years:

Reduced corporate income tax:

0% for the first 3 (three) years of operation.

4% for the subsequent 4 (four) years of operation.

8% from the subsequent 5 (five) years of operation.

with the possibility of extension.

Additional Applicable Taxes

San Marino does not have VAT (value-added-tax).

In case of investments in capital goods or real estate, taxable income may be reduced from 40% to 90%.

Dividends received by companies or entities having legal personality, not residing in the territory of the Republic of San Marino, do not contribute to the formation of the income of the receiving company for 95% of their amount. This exclusion applies on the condition that the participation in such companies or entities has been held continuously for at least twelve months and it results from company records and from at least one financial statement.

Dividends paid to individuals and non-resident persons are subject to a 5% withholding tax.