Inheritance and Gift Tax in San Marino

San Marino has abolished inheritance and gift taxes. Transfers of wealth between individuals, whether during life or upon death, are generally not subject to tax in San Marino.

No Inheritance Tax

There is no inheritance tax in San Marino. The Imposta sulle Successioni e Donazioni (inheritance and gift tax) was abolished. Beneficiaries who inherit assets are not subject to any tax on the value of the inheritance. This applies to all types of inherited assets, including cash, real estate, and securities.

No Estate Tax

San Marino does not levy an estate tax on the estate of a deceased person. The estate is not required to file an estate tax return or pay any tax upon death.

No Gift Tax

There is no gift tax in San Marino. Gifts made during a person's lifetime are not subject to tax, regardless of the amount or the relationship between the donor and recipient.

Property Registration on Inheritance

While there is no inheritance tax, the transfer of property (especially real estate) through inheritance or gift may trigger registration duties. These are typically:

• Registration duty: Approximately 1% of property value
• Transfer tax: Approximately 3-5% of property value
• Notarial fees: Vary

Capital Gains on Inherited Assets

When the beneficiary later sells an inherited asset, capital gains tax may apply if the sale occurs within 5 years. The cost basis is generally the market value at the time of inheritance (step-up in basis).

International Considerations

For individuals with assets in multiple jurisdictions:

• San Marino residents inheriting foreign assets: No San Marino tax on inheritance
• Non-residents inheriting San Marino assets: No San Marino tax on inheritance
• Double tax treaties: Limited coverage for inheritance taxes