San Marino, officially the Republic of San Marino, also known as the Most Serene Republic of San Marino, is an enclaved microstate surrounded by Italy, situated on the Italian Peninsula on the north-eastern side of the Apennine Mountains. Its size is just over 61 km2 (24 sq mi) and has an estimated population of about 32,000. Its capital is the City of San Marino and its largest city is Dogana. San Marino has the smallest population of all the members of the Council of Europe.
San Marino is governed by the Constitution of San Marino, 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 (constitution) still in effect.
The country's economy mainly relies on finance, industry, services and tourism. Despite having an extremely small economy for a nation state, it is 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. It is the only country with more vehicles than people.
The corporate profits tax rate in San Marino is 19 percent. Capital gains are subject to a five percent tax; interest is subject to a 13 percent withholding tax.
In 1972, a value added taxation (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.
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.
Country: San Marino
Region: Europe
Currency: Euro
Languages: Italian
Time Zone:
Phone Code:
Communications: Excellent
