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

Tax & Payslip Guide

Understanding your taxes in San Marino — tax year Calendar year.

📅

Tax Year

Calendar year

⏰

Filing Deadline

Confirm annually with Ufficio Tributario; payroll withholding applies to employees, while self-employed/company filings have separate deadlines.

🧾

VAT (Standard)

No VAT

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	10,000	9%	IGR first bracket.
10,000.01	18,000	13%	IGR second bracket.
18,000.01	28,000	17%	IGR third bracket.
28,000.01	38,000	21%	IGR fourth bracket.
38,000.01	50,000	25%	IGR fifth bracket.
50,000.01	65,000	28%	IGR sixth bracket.
65,000.01	80,000	31%	IGR seventh bracket.
80,000.01	∞	35%	Top IGR bracket.

🏛️ Social Contributions

ISS employee social security (excl. Fondiss)

Employee: ~6.3% (ISS pension + health + unemployment components only — does NOT include Fondiss complementary pension listed separately below)

Employer: 27.4%

ISS (Istituto per la Sicurezza Sociale) covers pension, sickness, unemployment, and work injury. Employee ISS rate is approximately 6.3–6.4%; combined with the mandatory Fondiss 2% below, total employee social contribution is approximately 8.3–8.4%. The 27.4% employer rate covers the full ISS employer contribution.

Fondiss complementary pension

Employee: 2%

Employer: 2%

Mandatory complementary pension component for many workers.

Separate management

Employee: Around 15% for covered directors/administrators

Employer: N/A or case-specific

Separate ISS management for directors/chairpersons and certain self-employed roles.

🛒 VAT Rates

No VAT

Standard

Monofase reduced rates for selected goods/assets

Reduced

0% on qualifying VAT-exempt purchases/import contexts

Super reduced

San Marino does not run a standard VAT system. It uses a single-stage monofase import tax, commonly 17% on goods imported into the Republic, with special rates such as 1% operating assets and vehicle rates.

🧾 Sample Payslip Decoder

Gross Salary EUR 2,500/month

Gross salary + EUR 2,500.00

Employee social security 8.3% (ISS) - -EUR 207.50

IGR income tax withholding (estimated) - -EUR 260.00

Net Salary (Take-home) EUR 2,032.50/month

Illustrative for 2026. IGR (Imposta Generale sui Redditi) is San Marino's progressive income tax; the EUR 260 estimate reflects a moderate effective rate on EUR 2,500 gross. Employer additionally pays ISS employer contribution of 27.4% (EUR 685/month) — not deducted from employee. Actual net depends on personal deductions, family allowances, and collective-agreement provisions. Engage a Sammarinese commercialista for accurate payroll calculations.

🌍 Special Expat Tax Rules

Elective, atypical and pensioner atypical residence can involve special tax planning, but eligibility, health insurance and work/public-benefit restrictions are strict.

📋 Double Tax Treaties

San Marino has treaty and exchange-of-information arrangements; cross-border Italy issues need specialist advice.

Ufficio Tributario della Repubblica di San Marino

https://www.gov.sm/

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