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.
Buying Property in San Marino
The full buying process, transaction costs, mortgage, and legal requirements.
San Marino is one of the world's smallest republics, and its property market is correspondingly tiny — supply is scarce, prices are driven by local demand, and transactions can take months. Foreigners of any nationality may buy residential property under Law 24 December 2018 n.173, without prior Council of XII authorisation, subject to a cap of 2 residential units per foreign natural person. Agricultural land and historic-centre properties face additional planning and heritage restrictions. The homeownership rate is high among residents, but foreign buyers are a small minority. A clean criminal record certificate (no convictions carrying 2+ years custodial sentence in the past 15 years) must be attached to every notarial deed.
Rent vs. Buy
Rent for at least 6–12 months before committing to purchase. San Marino's market is illiquid — the country has fewer than 34,000 inhabitants and resale can take years. Buying makes sense primarily for those pursuing elective residence, family roots, or long-term business ties. Transaction costs (transfer taxes, notary, registration) and supply constraints mean the break-even horizon is long.
Buying Process — Step by Step
Assess eligibility and restrictions
Before searchConfirm the property type (residential, agricultural, commercial) and your status as a foreign buyer under Law 173/2018. Agricultural and forest land carries additional restrictions. Verify you have not already used your 2-unit inter-vivos allowance. Non-residents must also consider how ownership interacts with any residence application.
Engage local lawyer and agent
1–3 weeksAppoint a San Marino-registered lawyer for independent due diligence. Agents operate but the market is small — some properties are sold privately. A geometra (land surveyor) should verify cadastral data, boundaries and building compliance.
Due diligence on title, planning and encumbrances
2–4 weeksCheck title at the Ufficio del Registro, cadastral records at the Ufficio del Catasto, planning status, condominium debts, mortgages, habitability certificates and any heritage constraints. Historic centres and hillside slopes carry special planning rules.
Secure financing and source-of-funds documentation
2–6 weeksIf using a mortgage, obtain conditional approval from a San Marino bank. Banks require strong KYC, documented source of funds, and typically expect 30–40 % deposits from foreign buyers. Cash buyers must still document fund origins for anti-money-laundering compliance.
Preliminary contract (compromesso)
1–2 weeks negotiationA preliminary agreement fixes price, conditions, and deposit (typically 10–20 %). Have your lawyer review before signing — it is legally binding. Include conditions for clear title, planning compliance, and finance approval.
Notarial deed (rogito) and payment of taxes
Completion dayThe Notaio drafts and reads the deed aloud in the presence of both parties. The buyer must attach a clean criminal-record certificate. Transfer taxes are paid at deed execution: the ordinary rate is approximately 6.40 % of the cadastral/declared value (comprising approximately 5 % registration tax, 1 % transcription fee, and 0.40 % cadastre fee). Notary fees are set by the Order of Lawyers and Notaries of San Marino.
Registration at Ufficio del Registro and Catasto update
1–2 weeks post-signingThe Notaio submits the executed deed to the Ufficio del Registro. The Catasto is updated within approximately 3 days of registration. Obtain certified copies of the registered deed. Update utility contracts, condominium records and municipal residency records as applicable.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Property transfer taxes | Approx. 6.40 % of declared/cadastral value | Breakdown: ~5 % registration tax + 1 % transcription + 0.40 % cadastre fee. Paid at notarial deed. Rate may vary by property category — confirm current rates with a local notary or accountant before offer. |
| Notary fees (Notaio) | Variable; typically EUR 1,500–5,000+ depending on transaction value | Set under the San Marino Order of Lawyers and Notaries tariff (last formally updated 01.06.2012 but applied by notaries to current transactions). Obtain a written estimate before appointment. |
| Independent lawyer fees | EUR 1,500–4,000+ for full due diligence | Essential for foreign buyers. Covers title search, planning check, contract review and registration coordination. |
| Geometra / surveyor fees | EUR 500–2,500+ | Verifies cadastral boundaries, building compliance, habitability certificate and any unauthorized works. |
| Estate agent commission | Typically 2–4 % of purchase price, sometimes split buyer/seller | Clarify in writing who pays and whether VAT (San Marino has its own IGR tax regime) applies. |
| Mortgage arrangement costs | EUR 500–3,000+ (valuation, bank fees, insurance) | If financed. Banks may require life/property insurance linked to the loan. |
| Total transaction cost estimate | Approx. 9–12 % of purchase price for foreign buyers | Includes transfer taxes (~6.4 %), notary, lawyer, surveyor and agent. Budget in EUR as San Marino uses the euro (EUR). |
The Notary — Mandatory for All Purchases
In San Marino's civil-law system, a licensed Notaio (notary) is mandatory for property transfers. The notary drafts the deed, verifies identities and documents (including the buyer's criminal record certificate), reads the deed aloud to both parties, collects transfer taxes, and submits the deed for registration at the Ufficio del Registro. The notary acts as a neutral public officer — not as the buyer's advocate. Engage an independent lawyer separately to protect your interests.
Mortgage
Mortgages are available through San Marino's domestic banks but are conservative. Lenders require strong KYC documentation, verifiable income or assets, local collateral, and typically 30–40 % deposit from foreign buyers. Loan products are similar to Italian-market mortgages but governed by San Marino banking law under the Central Bank (BCSM).
30–40 % for foreign buyers; first-home subsidised products exist for San Marino residents/citizens only
Non-resident foreign buyers must document source of funds carefully. Banks apply AML/KYC rules strictly given San Marino's MONEYVAL commitments. Italian banks do not operate in San Marino (different jurisdiction) — you must use a San Marino-licensed institution. Mortgage registration requires additional notarial deed and fees.
Land Registry
Property ownership in San Marino is recorded at the Ufficio del Registro (registration) and the Ufficio del Catasto (cadastre). The cadastre maintains property maps, boundaries, categories and fiscal values. Always request certified cadastral extracts and confirm ownership, encumbrances, mortgage registrations, and cadastral category before making an offer. The Catasto is updated within approximately 3 days of deed registration.
Taxes
Transfer taxes at deed: approximately 6.40 % of declared/cadastral value (5 % registration + 1 % transcription + 0.40 % cadastre). Annual property/ownership taxes apply under San Marino's IGR (Imposta Generale sui Redditi) regime. Rental income is subject to IGR. Capital gains on property sales may be taxable — consult a local commercialista or tax advisor for the current rates. San Marino has tax treaties with Italy but is a separate fiscal jurisdiction.
New Build vs. Existing Property
New builds and renovation projects require planning permits from San Marino's Ufficio per le Attività Territoriali. Historic centres and hillside areas have strict heritage and seismic constraints. Existing properties need title, planning-compliance, habitability and condition checks. Developer risk and completion delays on new builds require contractual protections reviewed by your lawyer.
Selling Property
The market is small and liquidity is low — plan a sale timeline of 12–24+ months. Sellers should retain all purchase documents, improvement invoices, tax receipts and correspondence. Non-resident sellers may need to obtain San Marino tax clearance and document any capital gain. Proceeds may need to be reported on repatriation depending on the seller's home country rules.
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