More information on the laws regulating applications for residency under a preferential tax regime in San Marino

Last update: October 2026

Atypical residency subject to a preferential tax regime is granted to natural persons who, not falling under the provisions of Article 17, paragraphs 1 and 2 of Law No. 118 of 2010, meet the following conditions:

1. have never been tax residents in the Republic of San Marino or have not yet consolidated their official registered residency within the territory of San Marino as of the date of entry into force of this article, as evidenced by the documentation requested by the competent offices of the Republic of San Marino, specifically the Tax Office and the Civil Status Office;
2. produce income abroad.
   Regarding income produced abroad, in lieu of the general personal income tax, a substitute tax equal to 7 percent is payable on the “net border income”, as defined by Article 13, paragraph 3 of Law No. 166 of December 16, 2013 and subsequent amendments. The substitute tax is always due for each fiscal year during the period of validity of the residency, with a minimum amount of €10,000.00 (ten thousand/00) and a maximum amount of €100,000.00 (one hundred thousand/00), even when foreign income turns out to be non-taxable in the Republic of San Marino pursuant to double taxation treaties. The substitute tax is paid in a single lump sum by the deadline established for the payment of the balance of general personal income taxes. For assessment, collection, litigation, and penalties, the provisions established for general personal income tax shall apply, to the extent compatible. The substitute tax is not deductible from any other tax or contribution.
   
   The preferential tax regime also applies to individuals for whom an extension of residency has been granted. Excluded from the application of the preferential tax regime are the tax-dependent children of the main applicant, as defined by Article 16, paragraph 2 of Law No. 166/2013 and subsequent amendments. It is understood that the main applicant, given their preferential tax regime, is not entitled to the tax deduction referred to in Article 16, paragraph 1 of the aforementioned Law No. 166/2013 and subsequent amendments. Children who cease to be tax dependents of the parent holding the atypical residency automatically accede to the preferential tax regime, starting from the tax period following the one in which the status of tax-dependent family member ceased, until consolidation.

The applicant for atypical residency must submit a specific application to the Department of Foreign Affairs and pay a practical processing fee, which absorbs all stamp duties and office fees, amounting to €1,000.00 to be collected under the relevant budget chapter managed by the Land Registry and Conservatory Office. In addition to the payment receipt, the following documents must be attached to the application:

1. a copy of a valid travel document for travel abroad, signed and declared authentic by the public official receiving the application;
2. a preliminary purchase contract or promise to purchase buildings, or a preliminary lease contract subject to the suspensive condition of the granting of residency;
3. a certificate of residency, general criminal record certificate, certificate of pending criminal charges or equivalent documents (for countries where such exist), and a tax compliance certificate or equivalent documents (for countries where such exist) issued by the country of last residency;
4. a substitute declaration of a notoriety act, made to the public official receiving the application, concerning the citizenships held, places of residence for the last 5 years, absence of criminal convictions, absence of pending criminal charges against the applicant, and regular compliance with tax obligations in any country;
5. documentation demonstrating that the applicant and any family members intending to transfer their residency to the Republic have sufficient resources for their own maintenance.

Upon receiving the application complete with all the documentation referred to in the preceding paragraph, the Department of Foreign Affairs submits it to the Congress of State, which decides on it within 60 days. The decision cannot be appealed under any circumstances. The purchase deed referred to in letter b) of the paragraph is not subject to prior authorization by the Council of XII and fulfills the current registration tax. The resolution of the Congress of State granting atypical residency is attached to the purchase deed for the purposes of transcription and property transfer.

The applicant for atypical residency has the right, according to the procedures provided for in the paragraph, to apply for the extension of the same limited to the individuals referred to in Article 16, paragraph 3-bis of Law No. 118 of 2010, who possess the requirements set forth by this law.

Until the consolidation of residency, the atypical residency holder and secondary applicants:

1. cannot access any type of employee employment relationship in the Expanded Public Sector and in entities, of public or private law, in which the Most Excellent Camera holds a stake;
2. are not entitled to receive welfare benefits, contributions, allowances, and public disbursements, under whatever name, linked to the possession of residency, nor to the contribution under Law No. 44 of March 31, 2015;
3. are required to assume at their own total expense the costs of healthcare assistance, through private insurance or with the Institute for Social Security, in the manner established by the Institute itself, covering all inherent risks.

The preferential tax regime referred to in this article is revocable and in any case ceases to produce effects fifteen years after 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 in the amount and within the terms established by current legal provisions. The effects produced in previous tax periods remain valid. Revocation or forfeiture of the regime precludes filing a new application for atypical residency.

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 omitted or partial payment of the substitute tax referring to them does not entail forfeiture of the preferential tax regime for natural persons.

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

1. in the hypothesis referred to in letter b), a certified copy of the public purchase deed or lease contract for the real estate unit;
2. a declaration concerning the place of residency 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 resident population registers and initiates, through the Gendarmerie, appropriate checks regarding the documentation produced; it also transmits the applicant’s data to the Tax Office for competent tax inspections, which reports annually to the Department of Foreign Affairs regarding the maintenance of requirements. 

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

In particular, in the event of omitted or partial payment, in whole or in part, of the substitute tax or in the event of failure to renew medical insurance, the beneficiary is granted ninety current days to restore compliance with the requirements demanded for the grant and maintenance of atypical residency, upon the fruitless expiry of which the office that ascertained the non-compliances shall report them to the Civil Status Office, Demographic and Electoral Services for the revocation of residency. The effects produced in previous tax periods remain valid. 

The Secretary of State for Foreign Affairs reports on a quarterly basis to the Permanent Standing Commission for Foreign Affairs, Emigration and Immigration, Security and Public Order, Information pursuant to Article 1 of Delegated Decree No. 75 of May 8, 2020.

A maximum number of residencies pursuant to this article may be granted, equal to 100 per year, not counting in this number the connected subjects who apply for an extension of residency and subjects with not-yet-consolidated residency who intend to join the preferential tax regime. This number may be modified annually by delegated decree.

Ten years after registration in the resident population register, atypical residency is considered consolidated and therefore the prohibitions, obligations, and restrictions provided for by this article cease, with the exclusion of the preferential tax regime, for the foreigner and connected subjects who apply for an extension of residency, and general rules on residency 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 restrictions provided for in this article also cease for the foreigner who renounces atypical residency.