Editing San Marino (section)

== Economy ==
{{Main|Economy of San Marino|Sammarinese euro coins|Postage stamps and postal history of San Marino|List of banks in San Marino}}
[[File:Via Basilicus din San Marino2.jpg|right|upright=1.15|thumb|Tourism and banking are the country's main sources of revenue.]]
San Marino is a [[developed country]],<ref>{{cite web|url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies|title=World Economic Outlook Database, April 2019|publisher=[[International Monetary Fund]]|website=IMF.org|access-date=29 September 2019}}</ref> and although it is not an [[European Union]] member it is allowed to use the [[euro]] as its currency by arrangement with the [[Council of the European Union]]; it is also granted the right to use its own designs on the national side of the [[euro coins]]. Before the euro, the [[Sammarinese lira]] was pegged to, and exchangeable with, the [[Italian lira]]. The small number of [[Sammarinese euro coins]], as was the case with the lira before it, are primarily of interest to [[coin collecting|coin collectors]].

San Marino's GPD per capita and [[standard of living]] are comparable to that of Italy. Key industries include [[bank]]ing, [[electronics]], and [[ceramic]]s.{{citation needed|date=December 2023}} The main [[agriculture|agricultural]] products are wine and cheese. San Marino imports mainly staple goods from Italy.{{citation needed|date=December 2023}}

San Marino's [[postage stamp]]s, which are valid for mail posted in the country, are mostly sold to [[philately|philatelists]] and are a significant source of income.<ref>{{cite web|url=https://www.venditafrancobolli.com/san-marino/|title=Vendita Francobolii - San Marino|language=it|access-date=22 January 2022}}</ref> San Marino is no longer a member of the [[Small European Postal Administration Cooperation]].<ref>{{cite web|url=https://www.sepacstamps.eu/|title=SEPAC Stamps {{!}} Small European Postal Administration Cooperations|access-date=7 March 2020}}</ref>

It has the world's third highest rate of car ownership, being one [[List of countries by vehicles per capita|of only a handful of countries with more vehicles than people]].<ref>{{Cite web|last=Putzer|first=Mark|date=2023-06-07|title=This Tiny Country Is the Only 1 With More Cars Than People|url=https://www.motorbiscuit.com/tiny-country-only-1-more-cars-than-people/|access-date=2023-10-12|website=MotorBiscuit}}</ref> As of October 3rd 2023, [[Gibraltar]] had the highest rate of car ownership per capita, and [[Guernsey]] was in the number two spot.<ref>{{Cite web|title=How Many Cars Are There In The World in 2023? – Hedges & Company.|url=https://hedgescompany.com/blog/2021/06/how-many-cars-are-there-in-the-world/|access-date=2023-10-12|website=hedgescompany.com|date=24 June 2021 }}</ref>

=== Taxation ===
San Marino offers a competitive tax environment designed to attract investment and support economic development. The standard corporate income tax (Imposta Generale sui Redditi, IGR) rate is 17%. However, new businesses benefit from a reduced rate of 8.5% for the first five years of operation, provided they meet specific employment criteria, such as hiring at least one employee within six months and a second within 24 months of starting operations.<ref name=worldbank>{{cite report|url=https://openknowledge.worldbank.org/server/api/core/bitstreams/6c9669ee-03b8-524f-bfe7-e991a96ac092/content|title=Economy Profile San Marino|publisher=World Bank Group|access-date=9 October 2023|format=pdf|page=37|series=Doing Business|date=2019}}</ref><ref name=":6">{{Cite web |last=Coletto |first=Valentino |date=2024-12-09 |title=The 2024 Guide to San Marino Tax |url=https://www.imidaily.com/europe/the-2024-guide-to-san-marino-tax/ |access-date=2025-04-30 |website=IMI Daily |language=en-US}}</ref><ref>{{Cite web |title=No tax and incentives to corporate profits |url=https://www.startup.sm/en/incentives/corporate-profits/ |access-date=2025-04-30 |website=Startup.sm |language=en-US}}</ref><ref>{{Cite web |title=Corporation tax and deductions for companies of San Marino |url=https://www.startup.sm/en/taxation/corporation-tax/ |access-date=2025-04-30 |website=Startup.sm |language=en-US}}</ref>

Innovative startups participating in San Marino's innovation programmes are eligible for further tax incentives:<ref name=":14">{{Cite web |title=Taxation in San Marino – San Marino Setup |url=https://smsetup.sm/en/blog/taxation-in-san-marino/ |access-date=2025-04-30 |language=en}}</ref>

* 0% corporate tax for the first three years.<ref name=":14" />
* 4% for the subsequent four years.<ref name=":6" />
* 8% for the following five years.<ref name=":6" />

==== Income tax ====
San Marino employs a progressive personal income tax system, with rates ranging from 9% to 35%:

* 9% for income up to €10,000.
* 13% for income between €10,001 and €25,000.
* 35% for income above €25,000.<ref name=":15">{{Cite web |title=San Marino - Tobias Nielsen |url=https://tobias-nielsen.com/2024/09/18/san-marino/}}</ref>

The personal income tax was introduced in 1984 and underwent significant reforms in 2013 to enhance fiscal revenue. San Marino imposes withholding taxes on various forms of income:

* 5% on dividends paid to individuals.<ref name=":15" />
* 13% on interest payments.
* 20% on royalties paid to non-residents.<ref>{{Cite web |title=Favourable taxation |url=https://www.camcom.sm/en/doing-business-in-san-marino-2/favourable-taxation/ |access-date=2025-04-30 |website=Chamber of commerce |language=en-US}}</ref><ref name=":15" />

==== Import tax ====
San Marino does not implement a traditional value-added tax (VAT) system. Instead, it applies a single-stage import tax known as "imposta monofase," levied at a standard rate of 17% on the importation cost of goods. This tax is applied only once at the point of importation and does not extend to services. Under the customs union agreement with the European Union, this import tax is considered equivalent to the EU's VAT system.<ref>{{Cite web |title=EU-San Marino Customs Union {{!}} Access2Markets |url=https://trade.ec.europa.eu/access-to-markets/en/content/eu-san-marino-customs-union |access-date=2025-04-30 |website=trade.ec.europa.eu}}</ref>

==== Tax incentives ====
To encourage investment, San Marino offers several tax incentives:

* Dividends received by non-resident companies are 95% exempt from taxation, provided the participation has been held continuously for at least twelve months.
* Investments in capital goods or real estate can lead to a reduction in taxable income by up to 90%.<ref name=":14" />


Because San Marino's tax rate is lower than surrounding [[Taxation in Italy|Italy]]'s, many businesses choose to be based in San Marino to avoid the higher rates. San Marino boasts a corporate rate 14.5% lower than Italy (23%) and 12.5% lower than the EU average (21.3%). This has made San Marino the [[tax haven]] of choice for many wealthy Italians and businesses.<ref>{{cite news|title=San Marino plans to ask for IMF bailout to bolster banks|url=https://www.theguardian.com/business/2018/oct/03/san-marino-plans-ask-imf-bailout-banks|website=The Guardian|date=3 October 2018|access-date=15 May 2024|last1=Giuffrida|first1=Angela }}</ref><ref>{{Cite web |title=Italy corporate tax rate |url=https://d3fy651gv2fhd3.cloudfront.net/charts/italy-corporate-tax-rate@2x.png?s=itacorptax&v=201804031046a1&d1=20000428&d2=20190428&mean=1&url2=/european-union/corporate-tax-rate}}</ref>

=== Tourism ===
{{Main|Tourism in San Marino}}
The [[tourism]] sector contributes over 22% of San Marino's [[Gross domestic product|GDP]],<ref name="rtv">{{cite web|url=http://www.sanmarinortv.sm/economia/default.asp?id=33&id_n=39203|title=Turismo: San Marino fa i conti con la recessione economica, l'Italia guarda con fiducia al 2010|date=11 January 2010|publisher=San Marino RTV|language=it|access-date=13 March 2010|archive-date=11 May 2011|archive-url=https://web.archive.org/web/20110511135215/http://www.sanmarinortv.sm/economia/default.asp?id=33&id_n=39203|url-status=dead}}</ref> with approximately 2 million tourists having visited in 2014.<ref>{{cite web|title=Tourists flows|url=http://www.statistica.sm/contents/instance15/files/document/14079659Tav_Afflusso_tur.pdf|website=statistica.sm|publisher=Statistical Office of San Marino|access-date=16 December 2015|url-status=dead|archive-url=https://web.archive.org/web/20151222082104/http://www.statistica.sm/contents/instance15/files/document/14079659Tav_Afflusso_tur.pdf|archive-date=22 December 2015}}</ref> On average tourists spend about 2 nights in the republic<ref>{{cite web| url=https://hub.wtm.com/exhibitor-news/exhibitor-news-2023/san-marino-sees-33-increase-in-visitors-in-autumn-winter-shoulder-seasons/| title=San Marino Sees 33% Increase in Visitors in Autumn/Winter Shoulder Seasons &#124; WTM Global Hub| date=20 October 2023 }}</ref> making on average a tourist present per 3 residents at any given time.{{Cn|date=May 2024}}

=== Conventions with Italy ===
San Marino and Italy have engaged in conventions since 1862,<ref>{{cite web|url=http://www.esteri.sm/on-line/home/trattati-internazionali/convenzioni-bilaterali/convenzioni-bilaterali---accordi-bilaterali-con-litalia.html|title=Convenzioni Bilaterali – Accordi bilaterali con l'Italia|publisher=Segreteria di stato per gli affari esteri e politici|language=it|access-date=28 December 2012|url-status=dead|archive-url=https://web.archive.org/web/20130104183908/http://www.esteri.sm/on-line/home/trattati-internazionali/convenzioni-bilaterali/convenzioni-bilaterali---accordi-bilaterali-con-litalia.html|archive-date=4 January 2013}}</ref> dictating some economic activities in San Marino's territory.

Cultivation of tobacco and production of goods which are subject to Italy's [[government monopoly]] are forbidden in San Marino. Direct import is forbidden; all goods coming from a third party have to travel through Italy before reaching the country. Although it is allowed to print its own postal stamps, San Marino is not allowed to coin its own currency and is obliged to use [[Istituto Poligrafico e Zecca dello Stato|Italy's mint]]; the agreement does not affect the right of the Republic of San Marino to continue to issue gold coins denominated in [[Italian scudo|Scudi]]<ref>{{cite web|title=Convenzione monetaria tra la Repubblica Italiana, per conto della Comunità europea, e la Repubblica di San Marino|url=https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:22001A0727(01):IT:HTML}}</ref> (the legal value of 1 gold Scudo is 37.50 euros). Gambling is legal and regulated; however, casinos were outlawed prior to 2007. There is one legally operating casino.{{Cn|date=May 2024}}

In exchange for these limitations, Italy provides San Marino with an annual stipend, provided at cost, of sea salt (not more than 250 tonnes per year), tobacco (40 tonnes), cigarettes (20 tonnes) and matches (unlimited amount).<ref name="esteri1980">{{cite web|url=http://www.esteri.it/MAE/normative/Normativa_Consolare/ServiziConsolari/Servizio_Militare/san_marino_1980.pdf|title=Convenzione di amicizia e buon vicinato 1939 (1980 transcript)|year=1980|language=it|access-date=28 December 2012}}</ref>

At the border there are no formalities with Italy. However, at the tourist office visitors can purchase officially cancelled souvenir stamps for their [[passport]]s.{{Cn|date=May 2024}}