The non-domiciled tax residence is a temporary permit to stay in Sammarinese territory for a minimum of thirty days and a maximum of one hundred and fifty days during the calendar year and can be issued only for the stay of natural persons in hotels that offer quality standards that can be classified in the primary classes of the sector category for an ideal clientele of high economic range. The following special provisions apply to the aforementioned temporary residence permit.

Non-domiciled tax residence is granted by the Gendarmerie – Foreigners’ Office to natural persons who satisfy the following conditions:

1. stay in hotels that offer quality standards within the primary classes of the sector category for an ideal clientele of high economic range, for a minimum of thirty days and a maximum of one hundred and fifty days during the calendar year;
2. comply with the payment of the General Tax on Annual replacement income;
3. have no pending criminal proceedings, in the Republic or abroad, for crimes for which the application of a prison sentence or interdiction of more than one year or equivalent penalties abroad is foreseen or have not been convicted, with a final judgment in the Republic or abroad, for the same crimes;
4. have not been fiscally resident in San Marino or in High Risk Countries, with the exception of jurisdictions subject to careful monitoring by the GAFI-FATF, MONEYVAL and other FATF Associate Members and who are collaborating with the same bodies to quickly resolve the deficiencies identified within the agreed timeframes, in the last seven years preceding the submission of the application;
5. have not been the recipients of a removal order pursuant to Article 33 of Law 28 June 2010 no. 118 and subsequent amendments or of an expulsion measure from the Republic of San Marino;
6. there are no important reasons of public order and security or conditions impeding entry or transit or permanence in countries that are part of the Schengen area, reported or known to the police.

Non-domiciled tax residence is issued with reference to each individual calendar year and consequently expires on 31 December of each year, regardless of the date of submission of the application or concession.
The applicant for non-domiciled tax residence may submit a request for its extension for legitimate, natural or adoptive children who are minors.
The calculation of the minimum and maximum period of stay also includes any days of stay in the territory in the calendar year, prior to the date of the request to join the non-domiciled tax residence regime.
The applicant for non-domiciled tax residence must submit, in the manner provided for by the circular of the Department of Foreign Affairs, a specific application to the Gendarmerie – Foreigners’ Office, attaching:

1. copy of a valid document for expatriation;
2. declaration, issued under one’s own civil and criminal responsibility, before the Gendarmerie – Foreigners’ Office, regarding the citizenships held, the places of residence in the last seven years, the absence of criminal convictions, the absence of pending charges and regular fulfillment of tax obligations in any country;
3. documentation proving the reservation of a stay at a hotel in the territory of the Republic.

The provision for issuing and revoking the non-domiciled tax residence permit is adopted by the Gendarmerie – Foreigners’ Office in accordance with the provisions of this article and those of Law no. 118/2010 and subsequent amendments as regards compatible.
Failure to comply with or violation of duties or lack or loss of requirements entails the immediate denial or revocation of non-domiciled tax residence to the person to whom it was issued.
Those who have made false declarations or have produced deeds and documents which have turned out to be false, without prejudice to the criminal sanctions in force, are subject to immediate prosecution.to revoke non-domiciled tax residence.

The revocation measure is adopted by the Gendarmerie – Foreigners’ Office, is transmitted to the interested party and precludes obtaining new permits in the following five years.
The annual tax is in any case due, without any reimbursement conditions.
The holders of non-domiciled tax residence:

1. cannot access any type of employment relationship in the Administration and in the Wider Public Sector and in entities which, under public or private law, are participated by the Most Excellent Chamber;
2. are not entitled to receive benefits, contributions, allowances and public disbursements of any kind, linked to the possession of residence or stay;
3. are not entitled to any free health care provided by the Social Security Institute;
4. are not entitled to access the Sammarinese social security system, do not have to pay any social security charges and must independently manage their own social security system;
5. are not entitled to access any social safety net and protection tool.

Non-domiciled tax residents, who cannot be an unsuitable subject pursuant to Article 1 of Law No. 47/2006 and subsequent amendments, may obtain the release by the Economic Activities Office of a special temporary Economic Operator Code for the exercise of self-employed work, not reserved by current legislation, or subject to authorization by the Congress of State or in direct competition with business activities already present in the San Marino territory, limited to the period of non-domiciled tax residence.

Temporary self-employed work is subject to the tax regime referred to in the previous paragraphs. No social security contributions are due nor are social security benefits recognized.

The administrative procedures for granting and revoking non-domiciled tax residences not already provided for in the previous paragraphs may be regulated by circulars from the Department of Foreign Affairs.
With respect to the provisions of this article, the provisions set forth in the International Agreements in force in the Republic of San Marino against double taxation and on the exchange of information remain unaffected.

Non-domiciled tax residents at the time of admission to the hotel are issued with a personal SMaC Card.

Within the first quarter of each year, the competent offices will provide specific information to the Permanent Council Commission for Foreign Affairs, Emigration and Immigration in reference to non-domiciled tax residences granted during the previous year, highlighting the number of those who requested the activation of the temporary economic operator code.

Special tax regime for non-domiciled tax residence

Every person authorized for the non-domiciled tax residence regime is required to pay an annual tax equal to Euro 10,000.00 (ten thousand/00) to be paid upon admission to the hotel and in any case within thirty days of the issuance of the non-domiciled tax residence authorization. With the exception of self-employed income and income from employment produced in San Marino, the aforementioned tax is a substitute for:

1. any taxes, duties, fees due for obtaining a temporary residence permit;
2. any taxes due in San Marino as a natural person on income produced or received in the territory.

The annual substitute tax is due for each natural person who has requested and obtained the non-domiciled tax residence regime, while is not due for minors under the age of eighteen.

All income produced by non-domiciled tax residents deriving from the exercise of activities for the exercise of self-employed work activities, are determinedborn according to the provisions of Articles 27 and 28 of Chapter IV of Title II of Law no. 166/2013 and subsequent amendments and a fixed proportional rate of 5 percent must be applied according to the formalities and reporting procedures of Law no. 166/2013 and subsequent amendments.

Any income from employment produced in San Marino by non-domiciled tax residents is subject to taxation and the formalities provided for by the ordinary tax legislation of San Marino pursuant to Law no. 166/2013 and subsequent amendments.

Without prejudice to the provisions for self-employed income and income from employment produced in San Marino, holders of non-domiciled tax residence are not required to file a tax return in the Republic of San Marino. Marino.

In any case, the production of income in Sammarinese territory by non-domiciled tax residents does not constitute a prerequisite for the application of the World Wide Principle by the Tax Office.
Non-domiciled tax residents for the exercise of self-employed work must carry out the related financial transactions on specific current accounts opened at Sammarinese banks.

The administrative procedures relating to tax, administrative and authorisation obligations may be regulated by circulars from the Department for Finance and Budget, the Tax Office or the Economic Activities Office.