The Permanent Council Commission for Foreign Affairs, Emigration and Immigration, upon proposal of the State Congress and after the mandatory opinion of the Gendarmerie, has the power to grant registered residence or ordinary residence permit in favor of foreigners who have distinguished themselves for internationally recognized merits in the field of science, art and culture or sport.

The subjects referred to in the previous paragraph must independently be in possession of the means necessary to guarantee their own sustenance and their own health care needs for the first twenty-four months of residence in the territory if they do not exercise a work activity. Health care for this period must be guaranteed through the stipulation of a specific insurance policy for the risk of illness, injury and maternity and health care with a minimum annual coverage of €30,000.00.

Alternatively, the professional athlete can access the atypical residence program subject to a preferential tax regime granted to natural persons who, not incurring the cases referred to in article 17 paragraphs 1 and 2 of Law no. 118 of 2010, satisfy the following conditions:

1. have never been fiscally resident in the Republic of San Marino or have not, at the date of entry into force of this article, yet consolidated their registered residence in the territory of San Marino, deducible from the documentation requested from the competent Offices of the Republic of San Marino and specifically the Tax Office and the Civil Status Office;
   
2. produce income abroad. In relation to income produced abroad, a substitute tax is due for the general tax on personal income equal to 7% on the “net border” as defined by article 13, paragraph 3 of Law no. 166/2013 and subsequent amendments with a minimum amount of 10,000.00 euros and a maximum of 100,000.00 euros for each fiscal year of the period of validity of the residence. The substitute tax is paid in a single solution by the date set for the payment of the balance of the general income taxes. For the assessment, collection, litigation and sanctions, the provisions set forth for the general tax on personal income apply, where compatible. The substitute tax is not deductible from any other tax or contribution.

The applicant for the atypical residence referred to in this article must file a specific application with the Department of Foreign Affairs and pay a tax fee for practical instruction, which absorbs all stamp duties and office fees, in the amount of €1,000.00 to be collected on the relevant budget chapter of the competence of the Registry and Conservatory Office. The following are attached to the application, in addition to the payment receipt:

1. copy of a valid document for travel abroad, signed and declared authentic by the public official who receives the application;
   
2. preliminary contract or promise to purchase buildings or preliminary rental contract subject to the condition precedent of the granting of residency;
   
3. certificate of residence, general criminal record, certificate of pending criminal charges or equivalent documents (for countries where the same exists), certificate of tax regularity or equivalent documents (for countries where it exists) issued by the country of last residence;
   
4. declaration in lieu of a sworn statement, made to the public official who receives the application, regarding the citizenships held, the places of residence in the last 5 years, the absence of criminal convictions, the absence of pending criminal charges against him and regular fulfillment of tax obligations in any country;
   
5. documentation to demonstrate that the applicant and family members who intend to transfer their residence to the Republic have sufficient resources for their own maintenance.

The Department of Foreign Affairs Foreign Affairs, the application including all documentation has been receivedreferred to in the preceding paragraph, submits it to the attention of the Congress of State, which deliberates on the same within 60 days. The decision is not subject to appeal in any case. The deed of purchase referred to in letter b) of paragraph 3 is not subject to prior authorization by the Council of the Twelve and is subject to the current registration tax. The resolution of the Congress of State granting atypical residence is attached to the deed of purchase for the purposes of transcription and transfer. 

The applicant for atypical residence, according to the procedures set out in paragraph 3, may apply for its extension limited to the subjects referred to in Article 16, paragraph 3 bis of Law no. 118 of 2010, in possession of the requirements set out in this law.

Until the consolidation of residence pursuant to paragraph 14, the holder of atypical residence and the secondary applicants referred to in paragraph 6:

1. cannot access any type of employment relationship in the Public Sector and in entities that, under public or private law, are participated in by the Most Excellent Chamber;
   
2. are not entitled to receive benefits, contributions, allowances and public grants of any kind linked to the possession of residence, nor to the contribution referred to in Law 31 March 2015 n.44;
   
3. are required to assume full responsibility for the costs of health care, through private insurance or with the Institute for Social Security, in the manner established by the Institute itself, to cover any risk inherent.

The preferential tax regime referred to in this article is revocable and in any case ceases to produce effects after fifteen years from the first tax period of validity. The effects of the preferential tax regime cease in any case in the event of omitted or partial payment, in whole or in part, of the substitute tax referred to in paragraph 2 in the amount and within the terms established by the current provisions of law. The effects produced in previous tax periods are saved. The revocation or forfeiture of the regime precludes the exercise of a new request for atypical residence. 

The revocation or forfeiture of the preferential tax regime of the applicant also extends to family members. The forfeiture of the regime of one or more family members due to failure to pay or partial payment of the substitute tax referred to them does not entail forfeiture of the preferential tax regime for natural persons referred to in paragraph 1.

Upon granting atypical residency by the Congress of State, the Department of Foreign Affairs shall communicate to the applicant the outcome of the application and request the production of the following documentation:

1. in the case referred to in letter b) of paragraph 3 above, a certified copy of the public deed of sale or rental contract of the real estate unit;
   
2. declaration regarding the place of residence in the Republic.

The Department of Foreign Affairs transmits to the Civil Status Officer the data necessary for the registration of the applicant in the Registers of the resident population and proceeds to initiate, through the Gendarmerie, the appropriate checks also regarding the documentation produced; it also transmits the applicant’s data to the Tax Office for the competent tax controls which reports annually to the Department of Foreign Affairs regarding the maintenance of the requirements. 

Violation of the duties referred to in this article entails the revocation with immediate effect of the atypical residence of the holder of atypical residence and of the secondary applicants to whom it has been extended. Atypical residency is revoked with immediate effect also in the cases provided for in Article 17 of Law No. 118 of 2010. Those who have expressly made false declarations or have produced acts and documents that have turned out to be false, without prejudice to the criminal sanctions in force, are subject to the immediate revocation of residency. 

In particular, the omitted or partial payment, in whole or in part, of the substitute tax or in the event of failure to renew the medical insurance, the beneficiary is granted ninety days current days to restore the satisfaction of the requirements for the granting and maintenance of atypical residence, after which the office, which has ascertained the non-compliance, reports them to the Office of Civil Status, Demographic and Electoral Services for the revocation of the residence. The effects produced in previous tax periods are saved. 

The Secretary of State for Foreign Affairs reports quarterly to the Permanent Council Commission for Foreign Affairs, Emigration and Immigration, Security and Public Order, Information pursuant to Article 1 of Delegated Decree 8 May 2020 n.75. 
A maximum number of residences may be granted, pursuant to this article, equal to n. 100 per year, not including in this number the subjects referred to in paragraph 6 and the subjects, with residence not yet consolidated, who intend to join the preferential tax regime. This number may be changed every year by delegated decree. 

After ten years from registration in the register of the resident population, the atypical residence is considered consolidated and therefore the prohibitions, obligations and constraints provided for in this article cease, with the exception of the previous paragraph 8, for the foreigner and for the subjects referred to in paragraph 6 and the general rules on residence apply, as well as the provisions of paragraphs 3 bis, 3 ter and 3 quater of article 16 of Law no. 118 of 2010. 

The prohibitions, obligations and constraints provided for in this article also cease for the foreigner who renounces the atypical residence.