You would be forgiven if you said you didn’t know where San Marino is. It is in fact a tiny European country (42 square miles) surrounded by Italy with a population of approximately 32,000 people. The official language is Italian and the currency is the Euro. It is one of the oldest republics in the world with well-established government and political systems. It is famous as having one of the highest per capita GDP’s in Europe and claims to have no national debt and very little unemployment. Its other claim to fame is that it has more vehicles than people!
There are a few advantages that make San Marino a good place to invest and/or start up your company:
Corporate Tax & VAT
San Marino has a corporate tax rate of 17%, one of the lowest when compared to surrounding countries of Italy, Belgium, France and Germany. There is no VAT on goods / services sourced in San Marino but there is a single phase tax of 17% on imported goods and services.
Business Set –Up
Business set up is relatively straight forward though it can take up to 6 weeks to set up a company and open a bank account. There is a requirement for just 1 director and 1 shareholder and a paid up capital of €12,750. San Marino is not ideal for any type of business that will require larger numbers of staff such as manufacturing or trading due its tiny affluent population. However it is ideal for any type of business involving technological innovation, non-tangible assets, energy–saving and anti-pollution processes as the government provides generous tax reliefs on profits reinvested in these area’s.
Ease Of Doing Business
The World Bank has ranked San Mario as 78/189 countries at ease of doing business in its 2016 report. (Regional average is ranked 69). It has improved marginally since last year in the area of business startup by introducing an online system to obtain the company operator code and the business license. All business is conducted through Italian so a translator will be required to make communication smooth.
Location, location, location
San Marino is ideally located for access to Italy and for surrounding markets of France, Belgium, Germany and even London. There is easy access to all major European capitals which ties in strategically with tourism industry in San Marino, which is reported to get approximately 2 million visitors each year.
Healy Consultants Group PLC has many years of experience in setting up in San Marino and other European Countries. For advice on most tax efficient and strategic solution for company set-up in San Marino, please contact us at