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European microstate with no VAT and competitive tax rates
Region
WESTERN EUROPE
Corporate Tax
17%
Setup Time
3 weeks
Currency
EUR
San Marino, one of the world's oldest republics and smallest countries, offers unique European microstate positioning. The landlocked enclave within Italy provides specific company registration opportunities.
With a population of 34,000, San Marino offers compact European living with Italian cultural surroundings. Italian is the official language. The climate is Mediterranean influenced.
Healthcare is provided through the state system with Italian integration. Safety is excellent. The cost of living is moderate.
The historic character and unique sovereignty create distinctive microstate appeal.
Corporate tax rate stands at 17%. Personal income tax reaches 50% on highest bracket. No VAT applies (replaced by import duty system given customs union with Italy).
San Marino uses the Euro through agreement with Italy. The economy depends on tourism, banking, and ceramics manufacturing.
Company registration through the Office of Industry, Handicraft, and Trade is established. SRL (limited liability company) and SPA (stock company) are available. Foreign ownership is permitted.
Company formation takes approximately 2-4 weeks. Minimum capital varies by structure. Annual compliance follows San Marino corporate law.
San Marino has shown interest in blockchain technology but comprehensive crypto license frameworks are still developing. The regulatory approach continues evolving.
San Marino regulates gaming but has not developed extensive online gambling licensing. The microstate market is very small.
The microstate's extremely small size limits certain operations. Integration with Italy provides practical connectivity. The unique sovereignty creates specific opportunities.
Banking access is available through San Marino banks. Professional services exist for corporate formation.
San Marino suits businesses interested in microstate positioning and those with specific Italian market strategies for their business setup.
Local: SRL
Local: SpA
| Corporate Tax Rate | 17% |
| Personal Income Tax Rate | 12% |
| VAT / Sales Tax | 0% |
| Capital Gains Tax | 5% |
| Withholding Tax | 0% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | Yes |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | HIGH |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $25,500 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule compliance required |
| Business Plan Required | Detailed business plan and information leaflet required for token offerings |
| Personnel Required | Directors with fit and proper requirements, technical personnel for blockchain operations |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | San Marino Innovation maintains registry of certified blockchain entities |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | No |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | San Marino Innovation S.p.A. (blockchain registry), Central Bank of San Marino (financial oversight) |
| Licensing Fee | $5,000 |
| Licensing Fee Details | Registration fees with San Marino Innovation approximately €5,000-10,000 plus company incorporation costs |
| Permitted Business Models | Token issuance (utility and security tokens), blockchain technology companies, high-tech enterprises |
| Permitted Activities | ICO/ITO issuance, blockchain development, DLT applications, fintech services |
| Restricted Activities | Payment tokens (cryptocurrencies) remain outside specific regulatory framework; full exchange/custody services may require additional Central Bank authorization |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Comprehensive business plan required for Congress of State authorization |
| Personnel Required | Qualified management personnel |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | National authorities |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Congress of State, National Authorities |
| Licensing Fee Details | Gambling activities are restricted under 1939 Convention with Italy; limited land-based casinos exist but online gambling licensing framework is very limited |
| Permitted Business Models | Land-based casino operations only (severely restricted) |
| Permitted Activities | Limited casino games |
| Restricted Activities | Online gambling, sports betting, and most gambling activities restricted under Italy-San Marino conventions |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $77,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Comprehensive multi-year business plan with financial projections required |
| Personnel Required | Qualified directors, compliance officer, AML officer, statutory auditor (if capital exceeds €77,000) |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required for regulated financial activities |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Central Bank of San Marino maintains public register of authorized financial institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Banca Centrale della Repubblica di San Marino (Central Bank of San Marino - CBSM) |
| Licensing Fee | $10,000 |
| Licensing Fee Details | Application fees approximately €10,000-25,000 depending on license type; annual supervision fees apply |
| Permitted Business Models | Banking, investment services, insurance, fiduciary/trust services |
| Permitted Activities | Deposit-taking, lending, payment services, investment management, insurance mediation |
| Restricted Activities | All banking, financial, and insurance activities require prior Central Bank authorization |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |