Residence in San Marino with easy tax regime

Atypical residence subject to a reduced tax regime

Atypical residence subject to a reduced tax regime is granted to natural persons who, not incurring the cases referred to in Article 17, paragraphs 1 and 2 of Law 118 of 2010, meet 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, still consolidated their registered residence in the San Marino territory, inferable 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.

With regard to income produced abroad, a substitute tax of 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 and a maximum of € 100,000.00 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 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.
The applicant for atypical residence referred to in this article must file a specific application with the Foreign Affairs Department and pay a tax right of practical instruction, which absorbs all stamp duties and office fees, in the amount of € 1,000.00 to be collected. on the relevant chapter of the financial statements under the responsibility of 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 the countries in which it exists), certificate of fiscal regularity or equivalent documents (for the countries in which it exists) issued by the country of last residence;
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.
   

The Foreign Affairs Department, having received the application including all the documentation referred to in the preceding paragraph, submits it to the attention of the State Congress, which decides within 60 days on the same. The decision is not subject to review in any case.

The deed of purchase referred to in letter b) of paragraph 3 is not subject to the prior authorization of the Council of XII and pays the current registration tax. The resolution of the State Congress granting the atypical residence is attached to the purchase deed for registration and transfer purposes.
applicant for atypical residence is entitled, according to the procedures provided for in paragraph 3, to apply for extension of the same limited to the subjects referred to in Article 16 paragraph 3 bis of Law 118 of 2010, in possession of the requisites provided for by this law.

Until the consolidation of the 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 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 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 subsidized 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 to the extent and within the terms provided for by the current provisions of the law. The effects produced in previous tax periods are reserved. Revocation or forfeiture of the regime precludes the exercise of a new request for atypical residence.

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

Upon granting the atypical residence by the State Congress, 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) of paragraph 3 above, a 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 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 requirements.

The violation of the duties referred to in this article entails the immediate revocation of the atypical residence of the atypical residence holder and of the secondary applicants to whom it has been extended. The 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 to the immediate revocation of the residence.

In particular, the omitted or partial payment, in whole or in part, of the substitute tax or in the event of non-renewal of the medical insurance, the beneficiary is granted ninety running days to restore the fulfillment of the requisites required for the granting and maintenance. of atypical residence, after which the office, which ascertained the non-compliances, 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.

The Secretary of State for Foreign Affairs reports on a quarterly basis to the Permanent Council Commission for Foreign Affairs, Emigration and Immigration, Security and Public Order, Information pursuant to Article 1 of the Delegated Decree of 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 not yet consolidated residence, who intend to adhere to the facilitated tax regime. This number can be changed every year by delegated decree.

After ten years from the registration in the register of the resident population, the atypical residence is considered consolidated and therefore the prohibitions, obligations and restrictions provided for by 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 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 his atypical residence.

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