Hire in San Marino through our Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity, effectively expanding their global reach without the need to establish a local subsidiary or branch office.

For a small country like San Marino, nestled within Italy and boasting a rich history dating back to 301 AD, an EOR can play a crucial role in attracting international businesses and fostering economic growth. By leveraging an EOR, companies from around the world can tap into San Marino's skilled workforce and unique economic landscape without navigating the complexities of setting up a local entity.

How Does EOR Work?

The EOR model operates through a straightforward process:

1. The client company identifies a candidate they wish to hire in San Marino.
2. The EOR becomes the legal employer of the worker, handling all employment-related tasks.
3. The client company maintains day-to-day management and work direction of the employee.
4. The EOR manages payroll, benefits, taxes, and compliance with local labor laws.
5. The client company reimburses the EOR for the employee's salary and associated costs, plus a service fee.

This arrangement allows businesses to quickly and efficiently expand their operations into San Marino, taking advantage of the country's strategic location, prosperous economy, and high standard of living.

Benefits of Using an EOR

Employing an EOR in San Marino offers numerous advantages for international companies:

1. Rapid Market Entry: Companies can start operations in San Marino without the time-consuming process of establishing a legal entity.

2. Compliance Assurance: EORs are well-versed in San Marino's labor laws, ensuring full compliance with local regulations and reducing legal risks.

3. Cost-Effective: Utilizing an EOR eliminates the need for substantial upfront investments in setting up a local office or subsidiary.

4. Flexibility: Companies can easily scale their operations up or down without the commitments associated with maintaining a permanent establishment.

5. Local Expertise: EORs provide valuable insights into San Marino's business culture, helping companies navigate the local landscape more effectively.

6. Risk Mitigation: By taking on employer liabilities, EORs shield client companies from many of the legal and financial risks associated with international employment.

7. Focus on Core Business: With the EOR handling administrative tasks, companies can concentrate on their primary business activities and growth strategies.

8. Access to Benefits: EORs can often provide competitive benefits packages, helping companies attract top talent in San Marino.

For businesses looking to tap into San Marino's unique economic environment, rich history, and strategic location within Europe, partnering with an EOR can provide a streamlined, cost-effective, and compliant solution for international expansion.

San Marino's employment landscape is characterized by a highly skilled and educated workforce, with a significant portion consisting of cross-border commuters from Italy. The country's economy is primarily driven by the service sector, particularly tourism, along with manufacturing and financial services. Despite its small size, San Marino boasts a diverse job market that caters to various industries and skill sets.

Overview of Labor Laws

San Marino's labor laws are designed to protect both employees and employers, ensuring fair working conditions and promoting a balanced work environment. Some key aspects of the labor laws include:

• Standard working hours: Generally set at 40 hours per week
• Minimum wage: Established and regularly reviewed to maintain fair compensation
• Paid leave: Employees are entitled to annual paid vacation and public holidays
• Social security: Comprehensive system covering health insurance, pension, and unemployment benefits
• Termination procedures: Clear guidelines for both employers and employees regarding contract termination

Cultural Considerations

When working in San Marino, it's essential to understand and respect the local cultural norms:

• Work-life balance: San Marinoese culture values family life and personal relationships, often prioritizing them alongside work commitments
• Communication style: Direct yet courteous, with an emphasis on building strong interpersonal relationships in the workplace
• Hierarchy: Respect for authority is important, but decision-making often involves consultation and collaboration
• Influence of Italian culture: Due to close ties with Italy, some workplace norms may be similar, but San Marino maintains its distinct identity

Challenges of Direct Hiring

Employers considering direct hiring in San Marino may face several challenges:

1. Limited local talent pool: Due to the country's small population, finding specialized skills within San Marino can be difficult
2. Cross-border employment complexities: Hiring workers from neighboring countries, particularly Italy, may involve navigating different legal and tax systems
3. Language barriers: While Italian is widely spoken, communication with international clients or partners may require additional language skills
4. Adapting to local labor laws: Understanding and complying with San Marino's specific employment regulations can be complex for foreign companies
5. Cultural integration: Ensuring smooth integration of international employees into the local work culture may require additional effort and resources

By understanding these aspects of San Marino's employment landscape, businesses can better navigate the challenges and opportunities presented by this unique market.

San Marino's payroll and tax system is unique, blending social security contributions with a simplified income tax structure. Unlike many other countries, San Marino doesn't have a traditional payroll tax system where employers withhold income tax from employees' salaries. Instead, the focus is primarily on social security contributions, which fund various social programs including pensions, healthcare, and unemployment benefits.

For employers and employees in San Marino, understanding the intricacies of this system is crucial for compliance and financial planning. The system is designed to provide comprehensive social protection while maintaining a relatively straightforward tax structure.

Employer Contributions

Employers in San Marino bear significant responsibilities when it comes to social security contributions. These contributions cover a wide range of social benefits and are a crucial part of the country's welfare system.

1. Social Security Contributions: Employers are required to contribute to various social security programs, including:

   • Pensions (Old Age, Invalidity, Survivors)
   • Healthcare
   • Family allowances
   • Unemployment insurance
   • Work-related injury insurance

   The rates for these contributions vary depending on the specific category and are typically paid on a monthly basis.

2. Employee Severance Fund (TFR): Employers must contribute to this fund, which provides financial support to employees at the end of their employment. The contribution rate varies based on the sector and the size of the company.

3. General Training Fund (FondISS): A small contribution is required towards this fund, which supports employee training and development.

4. Foreign Worker Tax: For certain foreign workers without a residency permit in San Marino, employers are required to withhold a 13% tax from their salaries.

It's important to note that while there isn't a traditional payroll tax system, employers still have the responsibility of managing these various contributions and ensuring they are paid accurately and on time.

Employee Contributions

The employee tax system in San Marino is primarily based on social security contributions rather than traditional income tax deductions. This system simplifies the process for employees while still ensuring their participation in the country's social welfare programs.

1. Social Security Contributions: Employees contribute 8.3% of their salary towards social security. This amount is withheld directly by the employer from the employee's salary.

2. Income Tax: Unlike many other countries, San Marino doesn't have a system of regular income tax withholding from salaries. Instead, income tax for individuals is calculated on an annual basis.

3. Additional Deductions: Depending on specific circumstances, employees might have additional deductions, but these are not as common or standardized as the social security contribution.

It's worth noting that the social security contributions made by employees fund various social programs, including pensions, unemployment benefits, and healthcare. These contribution rates are subject to change, so it's advisable for both employers and employees to stay informed about the latest rates and regulations.

In conclusion, while San Marino's payroll and tax system may seem unusual compared to other countries, it's designed to provide comprehensive social protection while maintaining a relatively straightforward structure. Both employers and employees should familiarize themselves with these requirements to ensure compliance and proper financial planning.

San Marino offers a comprehensive set of employee benefits that contribute to the overall well-being and financial security of its workforce. As an Employer of Record (EOR), Rivermate plays a crucial role in managing these benefits for companies operating in San Marino. By partnering with an EOR, businesses can ensure compliance with local regulations while providing their employees with the necessary benefits and additional perks. Let's explore the mandatory and optional benefits available in San Marino.

Mandatory Benefits

• Social Security contributions covering pension, unemployment, sickness, and maternity benefits
• Employer contribution of 16.1% and employee contribution of 8.62% towards the National Social Security Institute
• Unemployment benefit funded by a 0.5% employee contribution
• Sickness benefits replacing up to 100% of earnings for the first six months
• Maternity leave lasting up to 5 months, typically covered by social security
• Free medical care for all residents through the National Health System

Optional Benefits

• Private health insurance covering dental care, vision care, or additional treatments
• Wellness programs including on-site fitness facilities or gym membership contributions
• Life insurance plans for financial protection of employees' families
• Disability insurance offering support beyond social security coverage
• Flexible working arrangements such as remote work options or compressed workweeks
• Childcare assistance through vouchers or on-site facilities
• Professional development opportunities and tuition reimbursement
• Employee discounts on company products or partner services

By offering a mix of mandatory and optional benefits, employers in San Marino can create attractive compensation packages that support employee well-being and job satisfaction. As an EOR, Rivermate ensures that companies comply with local regulations while helping them implement and manage these benefits effectively.

San Marino's termination and offboarding process is a structured affair, designed to protect both employers and employees. Let's dive into the key aspects of this process in a clear and concise manner.

In San Marino, employers must have valid reasons for dismissing an employee. These reasons fall into two categories: "just cause" or "justified subjective reason." Just cause involves serious misconduct, such as theft, fraud, or repeated unjustified absences. Justified subjective reason covers company-related factors like economic reasons or technological changes.

When it comes to termination, communication is crucial. Employers must provide a written explanation detailing the specific grounds for termination. This ensures transparency and helps prevent potential misunderstandings or disputes.

Notice Requirements

Both parties are required to give notice before ending an employment contract. The notice periods vary based on the employee's classification and length of service. Generally, employees have shorter notice periods compared to employers. These timeframes are typically outlined in the employment contract or relevant collective bargaining agreements.

Severance Pay

Severance pay, also known as end-of-service indemnity or "TFR," is an important aspect of the termination process in San Marino. Employees may be eligible for this payment unless they're dismissed for just cause. The calculation of severance pay can be complex, as it's governed by specific labor laws and collective bargaining agreements.

Several factors influence severance pay:

1. Length of service
2. Reason for termination
3. Applicable collective bargaining agreements

Typically, employees need to have worked for at least a year to be eligible. The amount increases with years of service. Severance pay is usually required when termination is due to factors outside the employee's control, such as redundancy or restructuring.

In conclusion, the termination and offboarding process in San Marino is designed to be fair and transparent. It balances the needs of businesses with the rights of employees, ensuring a structured approach to ending employment relationships. By understanding these key elements, both employers and employees can navigate this process more effectively.

San Marino, a microstate nestled within Italy, has unique visa and work permit requirements for foreign workers. While the country's small size and close ties to Italy influence its immigration policies, it's essential for foreign nationals to understand the specific procedures for working in San Marino.

Visa Requirements

Most foreign nationals need a visa to enter San Marino. However, citizens of European Union (EU) and European Economic Area (EEA) countries, as well as Swiss nationals, can enter and stay in San Marino for up to 90 days without a visa. For longer stays or work purposes, even EU/EEA citizens need to obtain proper authorization.

Work Permit Process

To work in San Marino, foreign nationals typically need to secure a work permit. The process involves several steps:

1. Job Offer: First, you must have a job offer from a San Marino-based employer.

2. Employer Application: Your employer needs to apply for your work permit with the San Marino Labor Office.

3. Documentation: You'll need to provide various documents, including your passport, proof of qualifications, and a clean criminal record.

4. Approval: The Labor Office reviews the application and, if approved, issues the work permit.

5. Residence Permit: Once you have a work permit, you must apply for a residence permit at the Gendarmerie - Foreigners Office.

Important Considerations

• Quotas: San Marino may have quotas for foreign workers in certain sectors.
• Duration: Work permits are usually issued for a specific period and may be renewable.
• Family Members: Separate procedures may apply for bringing family members to San Marino.

It's crucial to start the application process well in advance of your intended start date, as processing times can vary. Additionally, working closely with your employer and potentially seeking legal advice can help navigate the process more smoothly.

Remember, while San Marino has close ties with Italy, it has its own distinct immigration laws and procedures. Always verify the most current requirements with official San Marino government sources or through a reputable immigration specialist.