Key Tax Rates at a Glance
| Tax Type | Rate | Tier | Notes | Source |
|---|---|---|---|---|
| Income Tax — top rate | 35.0% | High Tax | Top marginal rate | OECD 2026 |
| Income Tax — lowest rate | 9.0% | Entry rate | OECD 2026 | |
| Corporate Tax | 17.0% | Low Tax | Standard rate | OECD 2026 |
| VAT | 0.0% | Zero | Standard rate | OECD 2026 |
| Capital Gains Tax | 0.0% | Zero | Standard rate | OECD 2026 |
| Social Security (employee) | 8.5% | Employee contribution | OECD 2026 | |
| Territorial Taxation | No | Worldwide taxation | OECD 2026 | |
| Digital Nomad Visa | No | Check official government sources | Official |
San Marino Special Tax Regime
| Criterion | Detail |
|---|---|
| Who qualifies | Qualifying expats, investors and skilled workers. |
| Tax rate under regime | Reduced rate under San Marino Special Tax Regime. |
| Duration | Varies — consult official government sources. |
| Application process | Apply through San Marino Tax Authority. |
| Key restriction | Must not have been tax resident in prior years. |
Income Tax Brackets
Income Tax Brackets
| Annual Income (EUR) | Tax Rate |
|---|---|
| €0–€10,000 | 9% |
| €10,001–€28,000 | 13% |
| €28,001–€50,000 | 17% |
| €50,001–€80,000 | 21% |
| €80,001+ | 25% |
San Marino operates a progressive income tax system with rates escalating steeply for higher earners. At €100,000 annual income, an individual pays roughly €11,000 in income tax (25% on €80k+ = €5,000, plus 21% on €20k = €4,200, plus lower brackets). Social security contributions (3.5% ISS) add approximately €3,500, bringing total effective rate to ~14.5% — reasonable for Western Europe.
Corporate Tax
Corporate Tax
San Marino's standard corporate tax rate of 17% is competitive. The special incentive for new innovative companies (8.5% for 10 years) targets tech startups and R&D-focused enterprises. Dividends distributed to shareholders are taxed as personal income at bracket rates (9–25%). Retained earnings compound at 17% corporate rate, making San Marino efficient for reinvestment-focused companies.
VAT & Consumption Taxes
VAT & Consumption Taxes
San Marino does NOT have VAT. Instead, a customs-based duty system applies: EU goods enter at 0% duty (free trade agreement); non-EU goods at 0–20% duties depending on classification. This creates unusual pricing — imported goods from outside EU may carry duties, but intra-EU trade is seamless and duty-free. For consumers, shopping is typically equivalent to Italy (same goods, same effective cost), and duty-free advantage is minimal today.
Capital Gains & Investment Income
Capital Gains & Investment Income
San Marino imposes zero capital gains tax on personal investment gains — a significant advantage for traders, investors, and wealth managers. Dividends from domestic and foreign companies are taxed as personal income (9–25% brackets). Interest income and royalties also fall under personal income taxation. This 0% CGT regime makes San Marino attractive for active traders and discretionary portfolio management.
Digital Nomad & Expat Visas
San Marino does not currently offer a dedicated digital nomad visa. Check official government sources
Tax Scenarios — Effective Rates
Estimated all-in tax burden after income tax and employee social security. Assumes standard deductions; does not account for special regimes or itemised relief.
Tax Burden Calculator
Estimated take-home pay in —
Key Insight
San Marino applies a 35.0% top personal income tax rate, 17.0% corporate tax, and 0.0% VAT — a standard tax structure for the region.
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Frequently Asked Questions
Comparisons
Social Security & Benefits
Social Security
San Marino participates in the Italian social security system (ISS — Istituto per la Sicurezza Sociale). Employee contributions are approximately 3.5%, combined for pension and health — one of Europe's lowest rates. Self-employed rates are higher (~10–15%). Reciprocal agreements with EU/OECD countries mean contributions may be portable, and residents often access Italian public healthcare.