San Marino (SM)
A compact, high-income microstate entirely surrounded by Italy, known for low taxes, strong public administration, hilltop heritage, cross-border dependence on Italy and a small but rules-heavy residence system.
Capital: San Marino City
Region: Europe
Language: Italian
Currency: EUR (€)
Cost of living: Moderate (index 65)
Emergency: 112
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Business Setup
Start a business or go freelance in San Marino.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Confirm your residency or stay permit allows self-employment in San Marino — non-Sammarinese nationals require an appropriate work or residence authorisation
- 2 Consult a Sammarinese commercialista (accountant) to choose the right structure: sole proprietor (ditta individuale) or S.r.l. for limited liability
- 3 Register economic activity and obtain your tax identification with Ufficio Tributario and the Segreteria di Stato per le Finanze
- 4 Register with ISS (Istituto per la Sicurezza Sociale) for social insurance contributions — both employer and employee portions apply to the self-employed
- 5 Open a San Marino bank account (Cassa di Risparmio della Repubblica di San Marino, Banca CIS, or Banca Agricola Commerciale) — bring identity documents and source-of-funds evidence
- 6 Set up compliant invoicing: San Marino uses a monofase indirect tax system on goods; cross-border services with Italy and EU require specialist treatment
- 7 Review Italian cross-border rules: San Marino is surrounded by Italy and transactions with Italian clients trigger specific VAT-equivalent, monofase and permanent-establishment considerations
Tax registration
San Marino has no VAT in the EU sense — it operates a monofase tax system (commonly 17% on goods entering San Marino). Self-employed individuals pay IGR (Imposta Generale sui Redditi — general income tax) at progressive rates. Register with Ufficio Tributario before commencing activity. Annual tax return required; a commercialista handles filing in practice.
VAT threshold
No EU VAT. Goods transactions are subject to monofase import tax (typically 17% applied at import). Service invoices to Italian and EU clients require careful cross-border analysis — Italian reverse-charge and permanent-establishment rules may apply. Seek specialist San Marino/Italy cross-border tax advice.
Invoicing
Invoices must include: your name/company name and address, tax registration number (codice fiscale or partita IGR), client details, sequential invoice number, date, description of services or goods, net amount, applicable tax references (monofase where relevant), and total. Italian clients typically require electronic invoice (SDI) via Italy's e-invoicing system for B2B supplies — confirm with a commercialista whether this applies to your specific arrangement.
Social security
Self-employed persons (lavoratori autonomi) in San Marino contribute to ISS (Istituto per la Sicurezza Sociale). The combined employee and employer social contribution rate is approximately 35.7% of declared earnings (employee 8.3% + employer 27.4%). Self-employed pay both portions — approximately 35.7% total on their contribution base. ISS contributions provide access to sickness, maternity, pension, and unemployment coverage.
💡 San Marino's unique position — an enclave within Italy — creates significant cross-border complexity. Remote work from San Marino can trigger Italian tax residence if the worker is physically present in Italy more than 183 days per year. Banking due-diligence requirements are thorough given San Marino's past FATF grey-listing (removed 2024). Always engage a Sammarinese commercialista and, if relevant, an Italian tax consultant for cross-border situations.
🏢 Business Structures
Ditta individuale · Impresa individuale
Sole proprietorship
None
Min. capital
1–3 weeks
Setup time
Liability: Unlimited personal liability
Setup cost: EUR 200–800 (Ufficio Industria registration + local business licence)
Best for: Small local services where residence and work status allows self-employment. Simplest structure but exposes personal assets to business risk.
S.r.l. · Società a responsabilità limitata
Limited liability company
EUR 25,500
Min. capital
2–6 weeks
Setup time
Liability: Limited to company assets, with director duties
Setup cost: EUR 1,000–4,000 (notary deed, Ufficio Industria registration, professional advice)
Best for: Most small and medium operating businesses in San Marino. Standard commercial vehicle for resident and foreign-owned enterprises.
S.p.A. · Società per azioni
Joint-stock company
EUR 77,000
Min. capital
4–12 weeks
Setup time
Liability: Limited shareholder liability
Setup cost: EUR 5,000–20,000+ (notary, registration, governance documents)
Best for: Larger, regulated or investment-heavy structures requiring share capital. Complex governance with board of directors and supervisory board.
Società cooperativa · Società cooperativa
Cooperative
No fixed minimum; member contributions per statute
Min. capital
2–6 weeks
Setup time
Liability: Depends on cooperative structure
Setup cost: EUR 1,000–3,000 (notary, Ufficio Industria registration, statute drafting)
Best for: Member-owned social, agricultural or service ventures. Common in San Marino for community and worker-owned enterprises.
Branch / Representative presence · Sede secondaria o stabile organizzazione
Foreign branch / permanent establishment
Parent-company dependent
Min. capital
3–8 weeks
Setup time
Liability: Foreign parent company fully liable
Setup cost: EUR 1,500–5,000 (registration, legalised documents, local representative)
Best for: Foreign companies testing or operating in San Marino without a separate legal entity. Requires registration with Ufficio Industria and appointment of a local representative.
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