The Republic of San Marino is one of Europe’s microstates, surrounded by Italy’s Emilia-Romagna and Marche regions. It is one of the oldest republics in the world, dating to 301 AD, and was reputedly founded by a Christian stonemason named Marinus, who was escaping Christian persecution by the Roman Emperor Diocletian. It officially became a republic in the 1300s. San Marino has impressively survived invasions and occupations, maintaining its independence throughout the centuries, and today enjoying an open-border policy with Italy.
There are many pathways to obtaining residency in San Marino if you are interested in spending extended time in the area, or potentially moving there long-term. Additionally, San Marino has advantageous tax regimes for new residents. Read on to learn about these various avenues, as well as tax implications and how to obtain citizenship by descent.
How to get residency in San Marino
San Marino is not part of the EU or the Schengen Area, but the process to enter the republic and stay there isn’t complicated. Given that travelers must first pass through Italy—part of the EU and Schengen Area—they must still comply with those regulations.
Once you enter San Marino, if you plan to stay long term you will need to obtain a permit to stay (permesso di soggiorno) from the Gendarmeria in San Marino. The main types of permits you can get are: elective residency, atypical residency, special, study, and investment.
The study permit is available for those attending primary or secondary school or university. It will be issued for at least one year and can cover the period of study.
“Special” permits are those related to work and are divided into two categories: continuous and seasonal. Continuous permits are for those whose work contract lasts “indefinitely,” while seasonal permits apply to those whose contracts last for a maximum of 10 months.
Permits can be granted for family reunification as well (for instance, if you are married to a citizen of the Republic of San Marino).
You can also get a permit to stay by investing in the Republic of San Marino. This is also known as economic residency. To qualify, you must fulfill the following:
- Own at least the majority of the company
- Pay €350 per month per capita for healthcare services
- Hold an insurance policy with a San Marino company that covers at least €50,000 per capita
- Deposit €75,000 in the bank at the start, which needs to increase to €150,000 within two years of residency.
Alternatively, there is also a simplified process:
- Hire at least 5 employees and 8 for industrial projects
- Purchase a property for at least €300,000
- Have healthcare coverage for 24 months at a value of €30,000
The following sectors allow one to obtain economic residence:
- Advanced technological services
- Green economy
- Tourism
- Entertainment
- Trade
- Art and culture
- Productions with low environmental impact
- Health and pharmaceuticals
- Management, marketing, international relations, training, and research
Similarly, there is elective residency. You can qualify for this by purchasing property in San Marino for no less than €500,000, or for a price of at least €350,000 with renovations equal to €150,000. Alternatively, you will need to have interest-free government bonds equal to €600,000 kept in the bank for 10 years. The application fee is €10,000. The application is submitted to the Department of Foreign Affairs and the decision is taken by the Congress of State within 60 days from the submission of the application.
The “atypical residence” can be granted to pensioners who are citizens of an EU country, Switzerland or those identified with a specific decree of the Congress of State, on the condition that they have an annual income of at least €50,000 or properties worth at least €300,000, and that they previously never resided in the Republic of San Marino. A substitute 6% tax is applied to pensions and it must be paid in a single payment by 30 June of each year.
Finally, the “residency with a preferred tax regime” can be granted to individuals who produce income exclusively outside the territory of the Republic of San Marino and have never been a tax resident in San Marino in the past. A substitute 7% tax will be applied to all foreign incomes, with a minimum amount of €10,000 euros and a maximum of €100,000 for each fiscal year. A €1,000 application fee is due and applicant must demonstrate that he or she is economically self-sufficient, also with regard to cohabiting family members, and that they own or rent a home in the territory of San Marino. The residency application will be evaluated within 60 days of submission. Anyone who benefits from this residency cannot be employed as an employee in the public sector and must have health insurance.
It is worth mentioning that, after ten years of residency, you can qualify for permanent residency in San Marino.
What taxes will you have to pay?
As mentioned before, individuals who produce their income exclusively abroad can obtain residency in the Republic of San Marino. Such people only have to pay 7% on all foreign income tax. This payment must be made by June 30th each year. If your income is above €100,000, though, you will not owe any tax at all.
If you have a pension, this is further reduced to 6%, but only if you come from the EU, Switzerland, or other specific countries. Your annual income must be above €50,000, or your assets must be above €300,000 in this case.
If you own a business in San Marino, you can also easily obtain residency, and the corporate taxes are around 17%. If the business is new, however, you are entitled to a discount for five years at a rate of 8.5%. Finally, if you are invested in an “innovative startup,” you can qualify for 0% tax (dependent on a progressive profit tax up to 8%).
Citizenship by descent and naturalization
The pathway to San Marino citizenship can be quite long, which is why it is often better to apply for the permanent residence card once you are eligible. That said, Sammarinese citizenship is possible, both for descent and naturalization.
There are strict qualifications for citizenship by descent (Law no. 114/2000). In the first case, you can be eligible if both parents have Sammarinese citizenship. If you only have one parent who has citizenship, you have 12 months to apply after you turn 18. If the non-Sammarinese parent is stateless, then you can also qualify for citizenship. This also applies if both parents are stateless but you were born in San Marino.
Regarding citizenship by naturalization, you can become eligible after at least 20 years of residency in San Marino. Minors who have naturalized parents are eligible themselves. Finally, the 20 years residency requirement is lowered to 10 in the case you are married to a person with Sammarinese citizenship, or if you have parents of Sammarinese origin (but you were not born in San Marino yourself).
Conclusion
San Marino provides one with many opportunities for residency and investment and can be a fantastic option for those pursuing other avenues in life abroad, particularly in the realm of business and finance. If you would like to learn more about San Marino and how you can obtain residency there, do not hesitate to contact us at [email protected].
