Officially the Republic of San Marino, also known as the Most Serene Republic of San Marino, is an enclaved microstate surrounded by Italy. Its size is just over 61 km2 (24 sq mi), with a population of 33,562. San Marino has the smallest population of all the members of the Council of Europe. With Italian being the official language, along with strong financial and ethno-cultural connections, San Marino maintains close ties to its much larger neighbour.
San Marino is one of the only three countries in the world to be completely surrounded by a single other country (the others being Vatican City, also surrounded by Italy, and Lesotho). It is the third smallest country in Europe, with only Vatican City and Monaco being smaller. It is also the fifth smallest country in the world.
It is among one of the wealthiest countries in the world in terms of GDP (per capita), with a figure comparable to the most developed European regions. San Marino is considered to have a highly stable economy, with one of the lowest unemployment rates in Europe, no national debt and a budget surplus, and has the world's highest rate of car ownership, being the only country with more vehicles than people.
San Marino's per capita GDP and standard of living are comparable to that of Italy. Key industries include banking, electronics, and ceramics. The main agricultural products are wine and cheese. San Marino imports mainly staple goods from Italy.
In 1972, a value-added tax (VAT) system was introduced in Italy, and was applied in San Marino, in accordance with the 1939 friendship treaty. In addition, a tax on imported goods, to be levied by San Marino, was established. Such taxes, however, were not, and are not, applied to national products. Until 1996, goods manufactured and sold in San Marino were not subject to indirect taxation.
MISCELLANEOUS INVESTMENT FACTS
The corporate profits tax rate in San Marino is 19%.
Capital gains are subject to a five per cent tax; interest is subject to a 13% withholding tax.
The tourism sector contributes over 22% of San Marino's GDP, with approximately 2 million tourists having visited in 2014.
Legal & Political
San Marino lays claim to be the oldest extant sovereign state as well as the oldest constitutional republic.
San Marino is governed by the Constitution of San Marino (Leges Statutae Republicae Sancti Marini), a series of six books written in Latin in the late 16th century, that dictate the country's political system, among other matters. The country is considered to have the earliest written governing documents, or constitution, still in effect.
Although San Marino is not a European Union member, it is allowed to use the euro as its currency by arrangement with the Council of the European Union
Treaties & Agreements
San Marino and the United States belong to a number of the same international organizations, including the United Nations, Organization for Security and Cooperation in Europe, International Monetary Fund, and World Bank.
Under the European Union customs agreement, San Marino continues to levy taxes, the equivalent of an import duty, on imported goods. Also, a general VAT was introduced, in replacement of the Italian VAT.
Overview of Opportunities in San Marino
Relevant Industries to Focus On
Machinery and Mechanical Appliances