Key Facts of the oldest Republic in the world

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A COMPETITIVE TAX REGIME

17% STANDARD CORPORATE INCOME TAX RATE (CIT)

The taxable income is also reduced, by 40% to 90% of net profit, up to an amount equal to the investments in capital goods
Tax losses can be carried forward to offset a maximum 80% of the taxable income of the next three periods.

DEDUCTIBILITY OF COSTS (related to the business activity)
In % OF OPERATING REVENUE

  • ADVERTISING COSTS, INCLUDING SPONSORSHIP COSTS UP TO 8%
  • DATA PROCESSING, MARKET RESEARCH UP TO 10%
  • ENTERTAINMENT EXPENSES UP TO 5%


Deduction of interest expenses
  • Interest expenses on loans used to purchase capital assets are not tax deductible until the assets are used or are ready to be used.
  • Interest expenses on loans from company members who are individuals are deductible on a cash basis.


CAPITAL GAINS FROM SALES OF INTERESTS
Do not constitute taxable income if:
  • The equity interests are held continuously for a full 12 months before they are sold
  • The equity interests are recorded as long-term investments in the first financial statements after their acquisition


Capital losses from sales of equity interests in resident or non-resident companies are non-deductible if the above two conditions are met.
  • Dividends received from companies governed by the law of San Marino are not subject to CIT.
  • Ninety-five per cent of dividends from foreign companies are not subject to CIT, provided that the interests have been held for at least 12 months, and are duly recorded in the accounts and in at least one set of financial statements. The holding period requirement can also be met after the dividends are distributed.


WITHOLDING TAX on outbound dividends, interest, royalties (Unless a double tax treaty (DTT) applies)
  • Dividends distributed to resident and non-resident individuals are subject to the 5% withholding tax
  • Profits distributed and paid to parties other than individuals are not subject to the 5% withholding tax, provided that the recipient declares to the company distributing the profits that it is not acting on behalf of an individual.
  • Royalties are subject to 20% withholding tax when paid to non-resident individuals or entities.


WITHHOLDING TAX on interest (Unless a double tax treaty (DTT) applies)
  • Interest paid on loans granted by foreign companies 13%
  • Interest on current accounts and deposits 11%
  • Interest and other financial income from “repo” transactions on securities of any type 5%
  • Interest and other financial income from certificates of deposit
  • 5% (if the term is less than eighteen months)
  • 4% (If the term is longer than eighteen months)


TECHNO SCIENCE PARK BUSINESS INCUBATOR
Click here for more information
  • NETWORKING/SPACES/SERVICES
  • SIMPLIFICATIONS ON OBTAINMENT PERMIT OF STAY
  • TAX INCENTIVES FOR INVESTORS EMPLOYEES START UP



RESIDENCE
Simplified Residency Application scheme for entrepreneur/managers/researchers

INTERNATIONALISATION

ASK FOR INFORMATION - HOW TO START A BUSINESS (CLICK HERE)

SAN MARINO IS NOT EU MEMBER
DIPLOMATIC RELATIONS WITH 123 COUNTRIES
(Foreign Diplomatic and Consular Corps Accredited to San Marino Diplomatic Representations accredited to San Marino - click here)

Customs union agreement for trade with the EU
(click here - agreements with EU)

INTERNATIONAL TREATIES
(click here)

BILATERAL AGREEMENTS WITH OTHER STATES (CLICK HERE)






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Small Republic, big benefits

INVESTING IN SAN MARINO

Doing business in the world’s smallest Republic has its benefits. Not only because the country’s strategic position in the heart of Italy makes it easy to reach from all major European capitals, but above all because investors are able to benefit from a slimlined tax system, tax relief for technologically-innovative projects, safe investments and a direct link with institutions.

For more information please call +378 (0549) 980380 - info@cc.sm

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