San Marino
Chamber of Commerce Country Factsheet Last update: 09.08.2017
Your advisors at the Chamber of Commerce
Edith Stein+352423939482
Daniel Sahr+352423939313
Introduction
The third smallest state in Europe (after the Holy See and Monaco), San Marino also claims to be the world's oldest republic. According to tradition, it was founded by a Christian stonemason named Marinus in A.D. 301. San Marino's foreign policy is aligned with that of the European Union, although it is not a member; social and political trends in the republic track closely with those of its larger neighbor, Italy.
Source: The CIA World Factbook - San Marino
Macroeconomic indicators
San Marino's economy relies heavily on tourism, banking, and the manufacture and export of ceramics, clothing, fabrics, furniture, paints, spirits, tiles, and wine. The manufacturing and financial sectors account for more than half of San Marino's GDP. The per capita level of output and standard of living are comparable to those of the most prosperous regions of Italy.
San Marino's economy has been contracting since 2008, largely due to weakened demand from Italy - which accounts for nearly 90% of its export market - and financial sector consolidation. Difficulties in the banking sector, the recent global economic downturn, and the sizable decline in tax revenues have contributed to negative real GDP growth. The government has adopted measures to counter the downturn, including subsidized credit to businesses and is seeking to shift its growth model away from a reliance on bank and tax secrecy. San Marino does not issue public debt securities; when necessary, it finances deficits by drawing down central bank deposits.
The economy benefits from foreign investment due to its relatively low corporate taxes and low taxes on interest earnings. The income tax rate is also very low, about one-third the average EU level. San Marino continues to work towards harmonizing its fiscal laws with EU and international standards. In September 2009, the OECD removed San Marino from its list of tax havens that have yet to fully adopt global tax standards, and in 2010 San Marino signed Tax Information Exchange Agreements with most major countries. In 2013, the San Marino Government signed a Double Taxation Agreement with Italy, but a referendum on EU membership failed to reach the quorum needed to bring it to a vote.
Source: The CIA World Factbook - Economic Overview
IMF Statistics:
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices -0.982 0.500 1.000 1.200 1.300 Gross domestic product, current prices 1.848 1.558 1.556 1.603 1.650 Gross domestic product per capita, current prices 58,793.886 49,615.148 49,579.446 51,109.218 52,622.057 Inflation, average consumer prices 1.100 0.140 0.600 0.700 0.800 Unemployment rate 8.739 8.439 7.939 7.339 6.739
Source: IMF Statistics - San Marino
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 27.03.2006 (Memorial 2006, A, no. 229, p. 4086)
- protocol
- Effective as of 12.29.2006 (Memorial 2007, A, p. 1786)
- Protocol amendment and Exchange of letters from 18.09.2009
- Law from 16.07.2011 (Memorial 2011, A, no. 146, p. And 2024 ff.)
- Effective as of 08.05.2011 (Memorial 2011, A, no. 184, p. 3254)
Air Services agreement
None
Source: Administration des contributions directes
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in San Marino
Embassy of the Grand Duchy of Luxembourg in San Marino
Ambassador with residence in Rome: Mr Paul DÜHR
Secretary of Legation: André Flammang
90, Via di Sante Croce in Gerusalemme
I-00185 ROME
Tel: +39 06 77 20 11 77/78
Fax: +39 06 77 20 10 55
Email: rome.amb@mae.etat.lu
Economic and Commercial Attaché (AWEX):
Cecile FLAGOTHIER
Regione del Vallone Belgio
Via Orefici, 2
40124 Bologna
Tel: +39 051 233 209
Fax: +39 051 279 866
E-mail: bologne(at)awex-wallonia.com
Source: www.mae.lu
Source: www.awex.be
Country risk as defined by Office du Ducroire for San Marino
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for San Marino
The Chamber of Commerce and the country