Tax on Investment Income in San Marino

Investment income in San Marino is subject to various tax treatments depending on the type of income and the taxpayer's status. This guide covers the taxation of dividends, interest, rental income, and other investment returns.

Dividend Income

Individual Taxation

Dividends received by resident individuals are generally not subject to withholding tax (0% rate). Non-residents are subject to a withholding tax of 10% on dividends received from San Marino sources.

Corporate Taxation

Dividends received by a resident company from another resident company may qualify for participation exemption. Foreign-source dividends are taxable at the standard CIT rate of 17%, with a foreign tax credit available.

Interest Income

Individual Taxation

Interest income earned by individuals is not subject to withholding tax (0% rate):

Corporate Taxation

Interest income received by corporations is included in taxable income and taxed at the standard CIT rate of 17%. Interest expense is generally deductible.

Rental Income

Rental income from immovable property is taxed as follows:

Landlords may deduct expenses including maintenance, property management fees, insurance, and interest on mortgages.

Capital Gains

San Marino does not have a separate capital gains tax. Gains from the sale of assets by individuals are generally not taxed unless the asset is sold within 5 years of acquisition and the taxpayer is considered a professional trader.

Foreign Investment Income

San Marino taxes residents on their worldwide income. Foreign investment income is generally taxable in San Marino, with a foreign tax credit available for taxes paid abroad.

Reporting Requirements

Investment income may need to be reported in the annual tax return depending on the type and source. Taxpayers should consult with a tax advisor to ensure compliance.