Atypical residence for pensioners in San Marino: an advantageous fiscal opportunity

The Republic of San Marino offers an interesting opportunity for pensioners from European Union countries, Switzerland, and other countries identified by the Congress of State: atypical residence subject to a favorable tax regime. This option is ideal for those who wish to move to San Marino and enjoy significant tax benefits, without incurring the cases provided for by Article 17, paragraphs 1 and 2 of Law No. 118 of 2010.

Requirements

To obtain atypical residence for pensioners, the applicant must meet two fundamental requirements:

Have a demonstrable annual income of no less than 50,000 euros gross or demonstrable movable assets of no less than 300,000 euros. Have never previously resided in San Marino or have not yet consolidated their registry residence in the San Marino territory on the date of entry into force of the article governing atypical residence for pensioners.

Taxation

Pension income is subject to a substitute tax of the general personal income tax equal to 6%, both in the case where there is a treaty against double taxation between the country of origin and San Marino, and in the case where the country of origin operates a withholding tax. The substitute tax is paid in a single installment by the date set for the payment of the balance of the general income taxes and is not deductible from any other tax or contribution.

For pensioners who have held the role of Manager or Official of an International Organization and who have a demonstrable annual income of no less than 100,000 euros gross, the general income tax applied is reduced to 3%, without prejudice to the other conditions.

Application process

The application process for atypical residence for pensioners involves submitting an application to the Department of Foreign Affairs, accompanied by various documents, including:

Copy of a valid document for expatriation, signed and declared authentic by the public official who receives the application. Preliminary contract or promise to purchase buildings or preliminary lease contract subject to the suspensive condition of the granting of residence. Certificate of residence, general criminal record, certificate of pending criminal charges or equivalent documents (if existing in the country of origin). Self-certification regarding citizenship held, places of residence for the last 5 years, absence of criminal convictions and pending charges, and regular fulfillment of tax obligations in any country. Documentation demonstrating the availability of sufficient resources for the maintenance of the applicant and family members who intend to transfer their residence to San Marino. Documentation attesting to the opening of a current account with a San Marino credit institution.

In addition, the applicant must pay a treasury fee of 1,000 euros for the processing of the application, which absorbs all stamp duties and office fees.

The application is submitted to the attention of the Permanent Council Commission for Foreign Affairs, Emigration and Immigration, which deliberates within 60 days on the matter. The decision is not subject to review in any case.

What happens after the granting of atypical residence

Once atypical residence for pensioners is granted, the holder and secondary applicants are subject to specific prohibitions and obligations, including:

The impossibility of accessing employment relationships in the enlarged public sector and in entities participated by the Excellent Chamber. Exclusion from the right to receive public benefits, contributions, allowances and disbursements linked to the possession of residence, including the contribution provided for by Law No. 44 of March 31, 2015. The obligation to bear the costs of health care, through private insurance or with the Institute for Social Security, covering all inherent risks.

The advantageous tax regime is granted for a period of 10 consecutive years and is renewable. The effects of the regime cease in the event of failure to pay or partial payment of the substitute tax, without prejudice to the effects produced in previous tax periods. Revocation or forfeiture of the tax regime precludes the exercise of a new request for atypical residence.

Upon granting atypical residence for pensioners, the Department of Foreign Affairs requires the applicant to produce additional documentation, such as a certified copy of the public deed of sale or lease agreement for the property unit and a declaration of the place of residence in the Republic. The Department then proceeds with the registration of the applicant in the registers of the resident population, initiates checks through the Gendarmerie and transmits the data to the Tax Office for the relevant tax checks.

Violation of the prescribed duties results in immediate revocation of atypical residence for pensioners, as well as the declaration of falsehood or the production of false acts and documents, without prejudice to the criminal sanctions in force.

A limit of 500 atypical residences per year

San Marino grants a maximum number of 500 atypical residences for pensioners per year, a limit that can be modified annually by delegated decree. Applicants also have the possibility of obtaining a provisional residence permit for a maximum duration of 6 months while completing the process for registry residence.

After 10 years from registration in the register of the resident population, atypical residence for pensioners is considered consolidated and the specific prohibitions, obligations and constraints cease to apply, with the general rules on residence being applied.

Atypical residence for pensioners in San Marino represents an advantageous fiscal opportunity for those who wish to move to this fascinating State, enjoying a favorable tax regime and a peaceful and safe living environment. The application procedure, although articulated, offers the possibility of accessing significant benefits for a period of 10 years, with the prospect of consolidating one's residence in the long term.

https://www.millionaire.it/residenza-atipica-per-pensionati-a-san-marino-unopportunita-fiscale-vantaggiosa/ Francesco Mussoni Agenzia per lo Sviluppo Economico - Camera di Commercio di San Marino