Personal Income Tax in San Marino
San Marino operates a progressive personal income tax (PIT) system known as the Imposta sui Redditi. It features four tax brackets with rates ranging from 0% to 35%, with a personal allowance of €10,000.
Tax Residency
An individual is considered a tax resident of San Marino if they meet any of the following criteria:
- Spend more than 183 days in San Marino in a calendar year
- Have their primary place of abode in San Marino
- Have their center of vital interests (economic and personal) in San Marino
Resident individuals are taxed on their worldwide income. Non-residents are taxed only on San Marino-source income.
Personal Income Tax Rates (2026)
San Marino uses a progressive tax rate structure for personal income. The rates are applied to annual taxable income after the personal allowance:
| Annual Taxable Income (EUR) | Tax Rate |
|---|---|
| 0 – 10,000 | 0% |
| 10,001 – 28,000 | 12% |
| 28,001 – 50,000 | 23% |
| Above 50,000 | 35% |
Personal Allowance
All resident individuals are entitled to a personal allowance of €10,000 per year. This means the first €10,000 of annual income is tax-free. The allowance is applied automatically by employers through the PAYE system.
Deductions and Allowances
Standard Deductions
- Social Security Contributions: Employee contributions to SSD (Istituto per la Sicurezza Sociale) are fully deductible
- Health Insurance: Premiums for approved health insurance plans
- Charitable Donations: To approved organizations, up to a percentage of taxable income
- Education Expenses: School and university fees for dependents
Family Allowances
- Married Couple: Joint filing is available for married couples
- Child Allowance: Allowance per dependent child
- Dependent Relatives: Allowance for caring for elderly or disabled relatives
Employment Income
Employment income includes salaries, wages, bonuses, commissions, and benefits in kind. Employers are required to withhold PIT from employee salaries and remit it to the tax authorities monthly.
Self-Employment and Business Income
Self-employed individuals and sole proprietors are taxed on their net business income at progressive PIT rates. Expenses directly related to the business activity are deductible.
Filing Requirements
- Annual Tax Return: Due by June 30 of the following year
- PAYE Returns: Monthly, by the 15th of the following month
- Estimated Tax Payments: For self-employed individuals, quarterly installments
Penalties
- Late filing: 10% of tax due, plus interest per month of delay
- Late payment: 0.5% per month of delay
- Understatement: 25% of understated tax
- Fraud: Up to 100% of tax evaded, plus criminal prosecution