On December 23, 2020, the government approved a program that allows non-residents – individuals to obtain a residence permit in the Republic of San Marino in case of payment of a fixed (lump-sum) tax on foreign income.
Benefits of the program:
- Residence permit in Europe
- Preferential tax rate for offshore income – 7%
- The maximum tax amount is 100 thousand euros per year
- Obtaining a permanent residence permit (permanent residence) in San Marino after 10 years
Grounds for obtaining: Article 69 of Law No. 223 of December 23, 2020.
Eligibility criteria for the San Marino tax benefit program:
- No past tax residency of San Marino
- Absence of a registered place of residence in the territory of the Republic at the time of filing an application
- Earning income outside of San Marino
- No criminal record
The tax rate on income earned abroad is 7%. In this case, the minimum amount to be paid is 10,000 euros, and the maximum is 100,000 euros for each financial year of the tax residency without limiting the amount of income.
A mandatory requirement for participation in the program is the presence of real estate in San Marino, owned or leased (at the rate of at least 30 m2 for each family member). The applicant must provide documents confirming that the applicant and family members have sufficient funds to live in the Republic of San Marino.
The Foreign Office accepts the request and submits it to the Congress of State. The term for making a decision is 60 days.
The duration of the residence permit program in San Marino
The maximum duration of the preferential tax regime is fifteen years. At the end of ten years of participation in the program, the applicant receives a permanent residence permit in San Marino and can withdraw from the preferential tax program while maintaining the status of a resident.
The preferential tax regime is terminated if the lump-sum tax is not paid. This does not affect previous tax periods, but will preclude a new request to participate in the program.
If you want to obtain a residence permit in San Marino and optimize taxation of offshore income, please contact us and we will be happy to answer additional questions.
Yours sincerely, Vadim Orishak
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