Question 1

How is income tax calculated in San Marino in 2026?

Accepted Answer

San Marino uses progressive income tax (IGR - Imposta Generale sui Redditi) with 8 brackets for individuals: 9% up to €10,000; 12% on €10,000-15,000; 17% on €15,000-20,000; 20% on €20,000-28,000; 23% on €28,000-40,000; 26% on €40,000-55,000; 30% on €55,000-80,000; 35% above €80,000. Companies pay flat 17% corporate tax. New businesses get 50% reduction (8.5% rate) for first 5 years. No VAT - instead 17% single-stage import tax (Monofase). Tax deduction available for purchases with SMaC Card.

Question 2

Do digital nomads pay tax in San Marino?

Accepted Answer

Yes, if you spend 183+ days in San Marino during any calendar year OR have registered residence there, you become tax resident and pay taxes on worldwide income at progressive rates (9-35%). Digital nomads working remotely for foreign companies are fully liable. San Marino doesn't have specific digital nomad visa - residency requires business investment (€150,000 minimum bank deposit plus business stake) or employment. Non-residents only pay tax on San Marino-source income. Tax treaties prevent double taxation.

Question 3

What is the social security rate in San Marino 2026?

Accepted Answer

Employees pay approximately 8.3% social security contributions (varies by age and contract type): pension insurance, health insurance, unemployment (0.5%), supplementary pension fund (Fondiss). Employers pay approximately 27.4% total: 16.1% pension, 5% sickness/maternity, 2.8% family allowances, 2% supplementary fund, plus work injury insurance. Self-employed pay 15-22% depending on income category. Contributions cover universal healthcare, pensions, unemployment benefits. Total employment cost burden approximately 35-36%.

Question 4

What deductions can I claim in San Marino?

Accepted Answer

SMaC Card deduction: purchases in San Marino with special card are deductible from tax. Work-related expenses for self-employed and business owners. Startup investment deductions: 80% deduction years 1-3, 60% years 4-7, 20% years 8-12 for qualifying startup investments. Pension contributions deductible. Interest on business loans deductible. Capital goods investments: reduction of taxable income for fixed assets/real estate held 5+ years. Foreign taxes paid can be deducted (up to Norwegian tax equivalent). No mortgage interest deduction for personal residence.

Question 5

When do I need to file a tax return in San Marino?

Accepted Answer

Filing deadline April 30 for previous tax year (e.g., April 2026 for 2025 income). All residents with income must file annual tax return with Ufficio Tributario (Tax Office). Employers withhold income tax monthly through PAYE system. Annual return reconciles additional income and provides credit for withholdings. Non-residents file only if San Marino-source income. Self-employed and business owners must file regardless of income level. Electronic filing available. Late filing subject to penalties and interest.

Question 6

How does San Marino tax cryptocurrency in 2026?

Accepted Answer

Cryptocurrency gains taxed under standard income tax rules. Short-term gains (held under 6 months): taxed as ordinary income at progressive rates 9-35%. Long-term gains (held 6+ months): tax-exempt, no capital gains tax applied. Mining and trading income taxed as business/self-employment income. Professional crypto traders: up to 35% on profits. Companies: 17% corporate tax on crypto gains. No specific crypto reporting requirements beyond income declaration. San Marino has comprehensive crypto legislation (Delegated Decree 138/2024) - crypto-friendly jurisdiction actively promoting blockchain innovation.

Question 7

Are there tax incentives for businesses in San Marino?

Accepted Answer

New businesses: 50% corporate tax reduction (8.5% effective rate) for first 5 years. Startups exemption: highly innovative startups pay 0-8% progressive tax. Reinvestment incentives: profits allocated to fixed assets/capital goods over 5 years tax-exempt when used for technological upgrades. Intellectual property: portions of IP income exempt under 'nexus ratio'. Capital gains reinvestment: 90% capital gains reinvested in IP within 2 years become tax-exempt. No annual authorization fees for 3 years for new businesses. Loss carryforward: offset up to 80% of losses against taxable income for 3 years.

Question 8

What is San Marino's dividend tax rate in 2026?

Accepted Answer

Individual shareholders: 5% withholding tax on dividends received. One of lowest in Europe. Corporate shareholders: 0% (dividends received by companies are tax-exempt). Holding companies: if shares held 12+ months, pay tax on only 5% of dividends from Double Tax Agreement countries after foreign WHT. Combined company+shareholder effective tax: approximately 21.15% (17% corporate + 4.15% dividend on remainder). Companies distribute from after-tax profits. No additional dividend tax for reinvested profits in qualifying investments.

San Marino Tax Calculator 2026