Breakdown of GDP
The Sammarinese economy is based on a diversified fabric, in which industry weighs about a third of gross domestic product. It is followed by the credit and insurance sector, then services, public administration and commerce. Agriculture has a marginal weight but maintains an identity function thanks to the typical and organic productions protected by the Consorzio Terra di San Marino.
| Sector | GDP share |
|---|---|
| Industry | 33.3% |
| Credit and insurance | 17.6% |
| Commerce | 13.5% |
| Services | 13.6% |
| Public administration | 12.9% |
| Construction | 5.9% |
| Transport and communications | 2.4% |
| Tourism and hospitality | 0.6% |
| Agriculture | 0.1% |
Historical breakdown of Sammarinese GDP by sector. Updated series are published by the Office of Information Technology, Data and Statistics of the Republic (statistica.sm).
«San Marino has long set aside the myth of the simple tax haven. The real economy is industrial, export-oriented and integrated with Romagna.»
The new General Income Tax
Law 166 of 16 December 2013 superseded the previous proportional taxation regime, introducing a bracketed tax for individuals. The minimum rate is 9 percent for income up to 10,000 euros; the maximum is 35 percent for income above 80,000 euros. Every two years the brackets can be updated in relation to the cost of living.
| Income bracket | IGR rate |
|---|---|
| Up to 10,000 € | 9% |
| From 10,001 to 18,000 € | 13% |
| From 18,001 to 28,000 € | 17% |
| From 28,001 to 38,000 € | 21% |
| From 38,001 to 50,000 € | 25% |
| From 50,001 to 65,000 € | 28% |
| From 65,001 to 80,000 € | 31% |
| Above 80,000 € | 35% |
Rates as introduced by Law 16 December 2013 no. 166. For any subsequent amendments, refer to the Official Gazette and the Secretariat of State for Finance and Budget (finanze.sm).
Detaxation of reinvested profits
For companies, a detaxation of reinvested profits is provided when the investment project meets certain requirements: at least five permanent employees (of whom at least three resident or citizens of the Republic), investments in technological advancement, real estate expansion and increased employment. Article 75 sets the benefit at a maximum of 80 percent of taxable income.
Taxpayers carrying out self-employed activities pay a special annual tax differentiated by legal form and turnover. Exempt are self-employed workers and companies in the first six years of activity, companies in liquidation or with suspended activity, cooperatives and consortia, foundations and non-profit associations. Income assessment is entrusted to the Tax Office (Article 108); tax evasion is criminally sanctioned by Article 146.
For those starting a new activity, the incentives for new companies include exemption from the licence tax in the first three years and reduced rates on profits in the first six.