Key takeaways
- Contrary to a common belief, San Marino does tax capital gains of resident individuals. Under the IGR law (Law No. 166/2013), gains on shares and other shareholdings, financial instruments, crypto-assets and real estate held for five years or less are "miscellaneous income" (redditi diversi).
- These capital gains are taxed separately at a flat rate, raised from 8% to 10% by Law No. 141 of 12 November 2025. The main home and inherited property are excluded from the five-year real estate rule.
- Business gains are taxed as business income: companies pay IGR at 17% (8.5% for new businesses during their first years). Dividends paid to individuals bear a 5% withholding tax.
Last reviewed: October 2026
San Marino is a small independent republic inside Italy, with its own tax system and a low flat corporate rate. Its reputation for "no capital gains tax" is out of date: since the 2013 IGR reform, private gains are taxable, though at a low flat rate. This guide explains what is taxed for individuals in 2026, how residence works and what it means for people moving from Italy.
San Marino capital gains – key points (2026)
| Item | Rule |
|---|---|
| Gains on shares, holdings and financial instruments (individuals) | Miscellaneous income, separate flat tax of 10% (8% before Law 141/2025) |
| Gains on crypto-assets | Miscellaneous income; flat substitute tax (8% withheld by operators before the 2025 reform – check whether 10% now applies) |
| Real estate held ≤ 5 years | Taxable gain, unless it was your main home for most of the holding period or was inherited |
| Real estate held > 5 years | Gain not taxed for individuals |
| Gains in a business or profession | Business income; corporate IGR 17% (8.5% for new companies' first years) |
| Dividends to individuals | 5% withholding tax |
| Personal IGR on other income | Progressive, 9% to 35% |
Which gains are taxable?
Article 41 of Law No. 166/2013 lists the capital gains that count as miscellaneous income for individuals. They include gains from:
- the sale of shares and other shareholdings in companies, and of rights to acquire them;
- the sale of financial instruments (bonds, funds, ETFs, derivatives);
- the sale of crypto-assets;
- the sale of land and buildings held for five years or less (except the main home and inherited property);
- the sale or liquidation of a business or professional activity, including goodwill;
- land re-zoned within the previous five years.
Instead of joining the progressive scale, these gains are taxed separately at a flat rate. Law No. 141/2025 raised that rate from 8% to 10%. Gains realised through San Marino intermediaries can be subject to withholding at source.
Example: A resident retiree sells an ETF portfolio with a EUR 80,000 gain in 2026. Under the separate regime, the San Marino tax is about EUR 8,000 (10%). The same gain realised by a San Marino trading company would instead be part of its business income, taxed at 17%.
Real estate
An individual selling a building held for more than five years, or their main home, is not taxed on the gain. A sale within five years is taxable at the flat rate. Purchases bear registration and transfer taxes, and buying property as a non-resident foreigner generally requires authorisation.
Tax residence in San Marino
Residence for tax purposes follows registration in the population register (anagrafe) and actual presence in San Marino for most of the year. Foreigners first need a residence permit, for example through employment, a business, or an "elective residence" tied to an investment or company. Residents are taxed on worldwide income, with a credit for foreign taxes under article 18 of the IGR law.
Moving from Italy to San Marino
San Marino was removed from Italy's tax-haven "black list" in February 2014 (ministerial decree published on 24 February 2014). The presumption that Italians moving there remain Italian residents therefore no longer applies. Italy's general residence tests, and the Italy–San Marino double tax treaty in force since 2013, still decide any dual-residence case. You need a genuine move: home, family and economic interests in San Marino.
Frequently asked questions
Does San Marino tax capital gains?
Yes. Since the 2013 IGR reform, individuals' gains on shares, financial instruments, crypto-assets and real estate held five years or less are taxable, at a flat separate rate of 10% (8% before the 2025 reform).
What is the corporate tax rate in San Marino?
17%, with a reduced 8.5% rate for new businesses during their first years.
How are dividends taxed in San Marino?
Dividends paid to individuals bear a 5% withholding tax.
Do Italians moving to San Marino still pay tax in Italy?
Not automatically. San Marino left Italy's tax-haven list in 2014, so the presumption of continued Italian residence no longer applies. Italy's normal residence tests and the bilateral treaty apply.
Related guides
Sources
- San Marino Law No. 166/2013 on general income tax (IGR), art. 41 – summary by Sfera Professionisti Associati (sferastp.com)
- Law No. 141 of 12 November 2025 amending the IGR (HLB San Marino; Sfera, April 2026)
- Italian Ministry of Economy and Finance – removal of San Marino from the black list (February 2014)
- Ufficio Tributario della Repubblica di San Marino
This guide is general information, not personalised tax advice.
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