Economy and Banking Sector of San Marino

Location Southcentral Europe
Population (2016)33 005 ↑ (+0.01%)
EU Status not a member
Economy
National Currency EUR (Euro)
GDP 
    Nominal GDP (2014)1.4 bln EUR ↓ (-0.01%)
    Nominal GDP per Capita (2014)44 244 EUR ↓ (-0.01%)
    Real GDP Growth (2014)-1.0 % ↑ (2013: -3.0 %)
Inflation Rate 
    CPI, Year Average (2015)0.4 % ↓ (2014: 1.1 %)
Unemployment Rate (2014)8.7 % ↑ (2013: 8.1 %)
Credit Ratings (as of Sep 2016)
    FitchBBB good credit quality, outlook negative
    Moody's-
    S&P-
Taxation
Withholding Tax 0.0 - 11.0%
Double Taxation Agreements 19 signed agreements
Information Exchange 
    Exchange on Request 29 signed agreements
    Automatic Exchange starts in September 2017
FATCA IGA agreed on 30 June 2014, Model 2
Banking Sector
Deposit Guarantee Scheme 
    Maximum Protected Amount 50 000 EUR
Country Ceiling for Deposits 
    Foreign CurrencyAaa prime
Banking Sector Structure 
    Number of Banks11
    Recent Changes (2015) new banks: 0, closed banks: 0
Major Banks
 Banca di San Marino  Asset Banca
 Cassa di Risparmio della Repubblica di San Marino  Euro Commercial Bank
 Banca CIS - Credito Industriale Sammarinese  Banca Partner
 List of Banks in San Marino

San Marino's Economy

National Currency

San Marino uses the Euro on the basis of a formal arrangement with the European Community.

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GDP

According to , nominal GDP of San Marino in 2014 was 1.4 bln EUR.

San Marino underperforms the European Union in terms of real GDP growth with the average annual differential coming to -1.6% over the past 10 years (2004 - 2014). In 2014 real GDP growth was -1.0% which was below the Euro Area average (0.9%) and below the European Union average (1.3%). Real GDP growth in 2015 - 2021 are IMF's estimates.

Real GDP Growth in San Marino.
Chart 1. Real GDP Growth in San Marino. Source: International Monetary Fund.

In 2014, nominal GDP per capita in San Marino was 44 244 EUR.

San Marino has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 83.7% over the past 10 years (2004 - 2014). GDP per capita at PPP in 2015 - 2021 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  San Marino; European Union = 100.
Chart 2. GDP Per Capita at Purchasing Power Parity in San Marino; European Union = 100.
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Inflation Rate

According to , inflation rate in San Marino in 2015 expressed as annual percentages of average consumer prices was 0.4% which was above the Euro Area average (0.0%) and above the European Union average (0.0%). Inflation rates in 2016 - 2021 are IMF's estimates.

Inflation Rate in San Marino.
Chart 3. Inflation Rate in San Marino. Source: International Monetary Fund.
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Taxation in San Marino

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding tax rates applied on payments of interest and dividends in San Marino are shown in Table 1.

Dividends Interest
Natural person, resident 0.011.0
Natural person, non-resident 0.011.0
Table 1. Withholding tax rates in San Marino.
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Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

San Marino signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Austria
 Barbados (Aug 2013)
 Belgium
 Cyprus
 Georgia (Apr 2013)
 Greece (Apr 2014)
 Hungary
 Italy (Oct 2013)
 Liechtenstein
 Luxembourg
 Malaysia
 Malta
 Romania
 Saint Kitts and Nevis (Feb 2014)
 Seychelles (May 2013)

There are also several agreements between San Marino and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):

 Portugal
 Qatar (Mar 2013)
 Singapore (Dec 2013)
 Vietnam (Feb 2013)
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Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

San Marino signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Andorra
 Argentina
 Australia
 Bahamas
 Canada
 China (Apr 2013)
 Czech Republic
 Denmark
 Faroe Islands
 Finland
 France
 Germany
 Guernsey
 Iceland
 India (Aug 2014)
 Ireland (May 2013)
 Monaco
 Netherlands
 Norway
 Poland (Feb 2013)
 Samoa
 South Africa
 Spain
 Sweden
 United Kingdom

There are also several agreements between San Marino and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):

 Greenland
 Indonesia (Sep 2013)
 Switzerland (May 2014)
 Vanuatu

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

San Marino signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Further Information:
Automatic Exchange of Information on Financial Accounts
Countries Which Will Not Automatically Exchange Account Information

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FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

San Marino agreed in substance to use FATCA on 30 June 2014 (Intergovernmental Agreement Model 2): the text of the IGA has not been released and financial institutions operating in San Marino are allowed to register on the FATCA website consistent with the treatment of having an IGA in effect provided that San Marino continues to demonstrate firm resolve to sign the IGA as soon as possible.

Further Information:
FATCA and European countries

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San Marino's Banking Sector

Deposit Guarantee Scheme

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in San Marino are summarised in Table 2.

Scheme Participantsall credit institutions operating in San Marino (including branches of foreign banks), branches of San Marino's banks abroad
Eligible Depositorsnatural persons, legal entities
Maximum Protected Amount50 000 EUR
Paid In CurrencyEUR

Table 2. Deposit guarantee scheme in San Marino.

Further Information:
Deposit Guarantee Schemes in Europe

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Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Foreign currency deposit ceiling for San Marino] is Aaa (prime).

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Banking Sector Structure

Currently there are 11 credit institutions operating in San Marino.

Recent structural changes (2013 - 2015) of the banking sector of San Marino are summarised in Table 3.

201320142015
Number of Opened Banks000
Number of Closed Banks000

Table 3. Recent structural changes in the banking sector of San Marino.

All the credit institutions operating in San Marino can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Banks10
Central banks1

Table 4. Number of banks by category in San Marino.

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