Residence in San Marino for retired persons

Atypical residence subject to a reduced tax regime for retirees

Atypical residence for pensioners is granted to pensioners from countries of the European Union, Switzerland and those identified with a specific regulation of the State Congress, if, not incurring the cases referred to in Article 17, paragraphs 1 and 2 of Law no. 118 of 2010, the applicant:

1. has a demonstrable annual income of not less than 50,000.00 euros gross per year or a demonstrable movable assets of not less than 300,000.00 euros;
2. has never previously resided in San Marino or has not, at the date of entry into force of this article, still consolidated their registered residence in the San Marino territory.
   

With regard to pension income, a substitute tax of the general tax on personal income equal to 6% is due both in the case of a treaty against double taxation between the country of origin and San Marino, and in that for where the country of origin makes a withholding tax. The substitute tax is paid in a single solution by the date set for the payment of the balance of general income taxes. For the assessment, collection, litigation and penalties, the provisions envisaged for the general income tax for individuals apply, as far as compatible. The substitute tax is not deductible from any other tax or contribution.

Without prejudice to other conditions, if the applicant is a pensioner who has held the position of Manager or Official of an International Body and who has a demonstrable annual income of not less than 100,000.00 euros gross per year, the general income tax applied is equal to 3%.

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

1. copy of a document valid for expatriation, 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 suspensive condition of granting residence;
3. certificate of residence, general criminal certificate, certificate of pending criminal charges or equivalent documents (for countries where it exists);
4. declaration in lieu of an affidavit, made to the public official receiving the application, regarding the citizenships held, the places of residence for the last 5 years, the absence of criminal convictions, the absence of pending criminal charges against him and to regularly fulfill tax obligations in any country;
5. documentation demonstrating that the applicant and family members who intend to transfer their residence to the Republic have sufficient resources for their maintenance;
6. documentation demonstrating that the applicant has opened a current account relationship with a credit institution in the Republic of San Marino.
   

The Foreign Affairs Department, having received the application including all the documentation referred to in the preceding paragraph, submits it to the Permanent Council Commission for Foreign Affairs, Emigration and Immigration, which decides within sixty days on the same. The decision is not subject to review in any case.

The deed of purchase referred to in letter b) above is not subject to the prior authorization of the Council of XII and pays the current registration tax. The resolution of the Permanent Council Commission for Foreign Affairs, Emigration and Immigration with which the retired atypical residence is granted is attached to the purchase deed for registration and transfer purposes.

It is the faculty of the applicant for atypical retirement residence to apply for an extension thereof limited to the subjects referred to in Article 16 of Law 118 of 2010 paragraph 3 bis, in possession of the requisites provided for by this law.

Until the consolidation of the residence pursuant to paragraph 14 of Law 118 of 2010, the retired atypical residence holder and secondary applicants:

1. cannot access any type of employment relationship in the Extended Public Sector and in entities which, under public or private law, are owned by the Most Excellent Chamber;
2. are not entitled to receive benefits, contributions, checks and public funds, however denominated, linked to the possession of the residence, nor to the contribution referred to in Law no. 44 of 31 March 2015;
3. are required to bear the costs of health care at their own expense, through private insurance or with the Institute for Social Security, in the manner established by the Institute itself, to cover any inherent risk.
   

The subsidized tax regime is granted for a period of ten consecutive years and is renewable. The effects of the subsidized tax regime cease in the event of omitted or partial payment of the substitute tax. The effects produced in previous tax periods are reserved. Revocation or forfeiture of the tax regime precludes the exercise of a new request for atypical residence.

Upon granting retired atypical residence by the Permanent Council Commission for Foreign Affairs, Emigration and Immigration, the Foreign Affairs Department communicates the outcome of the application to the applicant and requests the production of the following documentation:

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

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

The violation of the duties referred to in this article entails the immediate revocation of the retired atypical residence of the atypical residence holder and of the secondary applicants to whom it has been extended. Retired atypical residence is revoked with immediate effect even in the cases provided for in Article 17 of Law 118 of 2010. Those who have expressly declared false or have produced deeds and documents that have proved to be false, without prejudice to the penal sanctions in force, are subject to immediate revocation of residence.

In particular, the omitted or partial payment of the substitute tax or in the event of non-renewal of the medical insurance, the beneficiary is granted ninety current days to restore the fulfillment of the requisites required for the granting and maintenance of the atypical residence pensioners, which have expired unsuccessfully which the office, which 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 reserved.

A maximum number of residences may be granted, pursuant to this article, equal to 500 per year, not counting in this number the subjects whose reunification has been requested and the subjects, with residency not yet consolidated, who intend to request the retired atypical residence. This number can be changed every year by delegated decree.

Ten years after registration in the register of the resident population, the retired atypical residence is considered consolidated and therefore the prohibitions, obligations and constraints provided for herein cease, for the foreigner and for the subjects whose reunification has been requested and the general rules on residence, as well as the provisions referred to in paragraphs 3 bis, 3 ter and 3 quater of article 16 of Law 118 of 2010.

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

Applicants for elective or atypical residence have the right to obtain a provisional residence permit, with a maximum duration of 6 months, pending completion of the procedure for registered residence. The Foreign Affairs Department, the office responsible for withdrawing the application, promptly transmits the documentation to the Gendarmerie Command - Office for Foreigners, the office responsible for issuing the temporary residence permit.

 

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!