Property Tax in San Marino

Property taxation in San Marino includes annual property tax (IMI), transfer taxes on acquisition, and registration duties. This guide covers the various property-related taxes that property owners and investors need to understand.

Annual Property Tax (IMI)

Imposta Municipale sugli Immobili

San Marino levies an annual municipal property tax known as IMI (Imposta Municipale sugli Immobili). The tax is calculated based on the cadastral value of the property:

• Standard Rate: 0.3% to 0.7% of cadastral value
• Owner-Occupied: Lower end of the range (approximately 0.3%)
• Second Homes: Higher end of the range (approximately 0.7%)
• Commercial Properties: 0.5-0.7% depending on type

Property Acquisition Taxes

Transfer Tax

When purchasing property in San Marino, buyers are required to pay a transfer tax (Imposta sulle Successioni e Donazioni for transfers):

• Standard Rate: Approximately 3-5% of property value
• Primary Residence: Reduced rate may apply
• Agricultural Land: Lower rate applicable

Registration Duty

A registration duty of approximately 1% is payable upon property registration.

Property Disposal Taxes

Capital Gains on Property

Gains from the sale of property may be subject to tax if sold within 5 years of acquisition. After 5 years, gains are generally exempt:

• Individuals: Gain taxed at progressive PIT rates (0-35%) if sold within 5 years
• Primary Residence: Exempt from capital gains
• Corporations: Gains taxed at CIT rate of 17%

Rental Income Taxation

Rental income from property is taxable as follows:

• Individuals: Net rental income taxed at progressive PIT rates (0-35%)
• Corporations: Included in business income, taxed at 17%
• Non-Residents: Withholding tax may apply

Tax Planning for Property Investors

• Hold Property Long-Term: Avoid capital gains tax by holding for more than 5 years
• Depreciation Deduction: Buildings can be depreciated for tax purposes
• Mortgage Interest Deduction: Interest on property loans is deductible against rental income
• Joint Ownership: Consider ownership structure to optimize tax outcomes