Non-domicilized tax residence in San Marino

Non-domiciled tax residence is a temporary residence permit in San Marino territory for a minimum of thirty days and a maximum of one hundred and fifty days during the calendar year and can only be issued for the stay of natural persons in hotels that offer quality standards that can be included in the primary sector category classes for an ideal clientele of a 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, which offer quality standards that can be classified in the primary sector category classes for an ideal clientele of a 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 annual substitute General Income Tax;
3. do not have pending, in the Republic or abroad, criminal proceedings for misdeeds for which the application of the penalty of imprisonment or disqualification for more than one year or equivalent sentences abroad is foreseen or have not suffered, with a sentence which has become final in the Republic or abroad, conviction for the same crimes;
4. have not been fiscally resident in San Marino or in High Risk Countries, with the exception of jurisdictions subjected to careful monitoring by the GAFI-FATF, MONEYVAL and other FATF Associate Members and which are collaborating with the same bodies to quickly resolve the deficiencies identified within the agreed timescales, in the last seven years preceding the submission of the application;
5. have not been the recipients of an expulsion measure referred to in article 33 of Law no. 118 of 28 June 2010 and subsequent amendments or of an expulsion measure from the Republic of San Marino;
6. there are no important reasons of public order and safety or conditions preventing entry, transit or stay in countries belonging to the Schengen area, reported or known to the police.

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

1. copy of a document valid for travel abroad;
2. declaration, issued under one's own civil and criminal responsibility, before the Gendarmerie - Foreigners Office, regarding the citizenships held, the places of residence for the last seven years, the absence of criminal convictions, the absence of pending charges and regular compliance of tax obligations in any country;
3. documentation proving the booking 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 compliance with the provisions of this article and those of Law no. 118/2010 and subsequent amendments to the extent compatible.
Failure to comply with or violation of duties or the lack or loss of requirements entails the denial or immediate 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 proven to be false, without prejudice to the criminal sanctions in force, are subject to the immediate revocation of their non-domiciled tax residence.The revocation provision 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 due in any case, without any condition of reimbursement.

Holders of non-domiciled tax residence:

1. cannot access any type of employment relationship in the Administration and in the Broader Public Sector and in entities which, under public or private law, are owned by the Most Excellent Chamber;
2. do not have the right to receive benefits, contributions, allowances and public grants, however named, linked to the possession of residence or residence;
3. are not entitled to any free healthcare provided by the Social Security Institute;
4. do not have the right to access San Marino social security, do not have to pay any social security burden and must manage their own social security system independently;
5. do not have the right of access to any social safety net and protection tool.

Non-domiciled tax residents, who cannot be an unsuitable person pursuant to article 1 of Law no. 47/2006 and subsequent amendments, can obtain the issue from the Economic Activities Office of a specific temporary Economic Operator Code for the exercise of self-employment activities, not reserved by the regulations in force, or subject to authorization by the Congress of State nor in direct competition with business activities already present on the territory of San Marino, limited to the period of non-domiciled tax residence. Temporary self-employment activity is subject to the tax regime referred to in the previous paragraphs. No social security contributions are due nor are social security benefits recognized.
Administrative procedures for the granting and revocation of non-domiciled tax residences not already provided for in the previous paragraphs may be regulated with circulars from the Department of Foreign Affairs.
With respect to the provisions of this article, the provisions of the International Agreements in force in the Republic of San Marino against double taxation and on the exchange of information are reserved.
Non-domiciled tax residents are issued a personal SMaC Card upon admission to the hotel.
Within the first quarter of each year, specific information is provided by the competent offices to the Permanent Council Commission on Foreign Affairs, Emigration and Immigration in reference to non-domiciled tax residences granted during the previous year, highlighting the number of those who have requested activation. of the temporary economic operator code.

Special tax regime for non-domiciled tax residence

1. Each 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 issuing the authorization. of non-domiciled tax residence. With the exception of self-employment income and employee income produced in San Marino, the aforementioned tax replaces:
2. any taxes, duties, fees due for obtaining the temporary residence permit;
3. any taxes due to 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 it 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 is determined in accordance with the provisions of articles 27 and 28 of Chapter IV of Title II of Law no. 166/2013 and subsequent modifications and a fixed proportional rate of 5 percent must be applied according to the formalities and declaration procedures of Law no. 166/2013 and subsequent amendments.

Any employee income produced in San Marino by non-domiciled tax residents is subject to the taxation and formalities required by the ordinary San Marino tax legislation referred to in Law no. 166/2013 and subsequent amendments.
Without prejudice to the provisions for self-employment income and employee income produced in San Marino, holders of non-domiciled tax residence are not obliged to submit a tax return in the Republic of San Marino.
In any case, the production of income in the territory of San Marino 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-employment activities must carry out the related financial transactions on specific current accounts opened at San Marino banking institutions.
Administrative procedures relating to fiscal, administrative and authorization obligations can be regulated with circulars from the Department of Finance and Budget, the Tax Office or the Economic Activities Office.

Do you want more information?

Our studio is at your disposal to answer all your questions, clarify your doubts and support you in all the steps to realize your project.
Contact us now for an appointment!