Economy in San Marino
An economic system refined by time
Trade in San Marino
How is the San Marino economy organized?
About 5000 companies are active in the Republic of San Marino.
Of these, more than 33% are represented by manufacturing companies, followed by insurance and service companies and public administration bodies and even farms, which represent the smallest percentage.
Even though the agricultural sector does not play a role of primary importance, it is very well known for its production of typical, organic Sammarinese products. The tendency is, in fact, to offer only quality fruit and vegetables with particular attention to the absence of chemical elements.
Do you know that in the historical centre of San Marino it is still possible to come across artisan shops and buy products made according to the local traditions? It is in fact quite possible to stumble upon shops that abound in local products with hand-painted ceramics, gold items, wrought-iron tools, precious materials.
In addition, shopping centres, which house all kinds of shops, restaurants and bank facilities, have been built within the territory, such as San Marino Outlet Experience.
What do you need to start a business in San Marino?
Opening a new business in the Republic of San Marino certainly has its advantages for the entrepreneur. The licence for newly established firms is, from the first to the fourth year, completely free of charge.
In addition, the following measures are applied to all business activities:
- reduction of taxable income from 40 to 90% up to an amount equal to investments in capital goods or real estate
- deduction of tax losses from taxable income up to 80%
- personal dividends taxed at 5%
- royalties to non-residents taxed at 20%
Costs are fully deductible with the exception of:
- advertising and sponsorship costs deductible up to 8% of operating income;
- processing of market research data deductible up to 10% of operating income
- entertainment expenses deductible up to 5% of operating income
These limitations may be removed if it is shown that the operations are in the economic interest of the enterprise and have actually been put into practice.
What is the cost of labour?
The costs to be incurred for every company employee are:
- company liability: 26.6% of the gross salary of each employee (for illness, pregnancy, family allowances, social security benefits)
- employee liability: 6.7% of the gross salary