The State of San Marino attracts investors with residences inside hotels. The advantage offered is a substitute tax of 10,000 euros per year, without the need to file a tax return, except for those generated through companies incorporated in the Republic, on which profits would be taxed at 5 percent. According to the budget law for 2023, which is currently being discussed, a temporary permit to stay in San Marino territory will be granted for a minimum period of 30 days and a maximum of 150 days per year, but only for the stay of individuals in hotels offering high quality standards. Non-domiciled tax residence is issued for each individual year and expires on December 31, regardless of the date of application. Each person authorized for tax residence will be required to pay an annual tax of 10,000 euros, to be paid within 30 days of the issuance of tax residence authorization. According to the government, this will be an important tool for increasing tax revenues.
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