In San Marino, the nature of the working relationship is the basis for differentiating between employees and independent contractors. This distinction is drawn from various legal principles, including the Civil Code (Codice Civile) and Legislative Decrees (Decreto Legislativo).

Control and Integration

Employees are subordinate to the employer's control regarding work schedules, methods, and tools used. They are integrated into the company's organization and work under the employer's direction. On the other hand, independent contractors are autonomous in their work methods and organization. They are not subject to the employer's control over their daily activities and have more freedom in how they complete the work.

Remuneration and Social Security

Employees receive a fixed salary or wage, typically paid at regular intervals. They benefit from statutory deductions for social security contributions made by both the employer and employee. Conversely, independent contractors are paid a fee for a specific service or project, not a fixed salary. They are responsible for their own social security contributions.

Dependence and Risk

Employees are economically dependent on the employer for their livelihood. They have limited risk as the employer provides the tools and equipment for the work. Independent contractors, however, are not economically dependent on a single client and can work for multiple entities. They bear the financial risk associated with their work, including providing their own tools and equipment.

The distinction between an employee and an independent contractor can be complex. In cases of doubt, the San Marino Ministry of Labour or the courts may intervene to determine the worker's status based on the specific circumstances of the work relationship. Some additional factors that courts might consider include the level of skill required for the work, the provision of benefits, and the length of the working relationship.

Independent contracting in San Marino offers a flexible work arrangement for businesses and skilled individuals. However, understanding the specific context is crucial for navigating this path.

Contract Structures

Written agreements are essential in independent contracting. A contract should outline the scope of work, deliverables, and payment terms. While there isn't a standardized format, it's advisable to reference templates from local legal associations or chambers of commerce.

The contract should be tailored to the specific project, with clear language regarding expectations and deadlines. It should also specify the dispute resolution mechanisms and whether Sammarinese law or another jurisdiction governs the agreement.

Negotiation Practices

Independent contractors should highlight their skills and experience, demonstrating the value they bring to the project. Researching prevailing rates for similar services in the region can establish a strong negotiation baseline.

Transparent communication with the client regarding project scope, revisions, and potential changes in fees is key. Establishing a trusting relationship fosters a successful working partnership.

Common Industries for Independent Contractors

Independent contractors are common in several industries. These include Information Technology and Creative Services, where web developers, graphic designers, writers, and translators frequently work on a freelance basis.

Consulting and Professional Services is another common industry, with lawyers, accountants, and other professionals offering their services on a contract basis.

The Tourism and Hospitality industry also sees a lot of independent contractors, with freelance tour guides, event planners, and short-term rental property managers.

Construction and Renovation is another industry where skilled tradespeople like electricians, plumbers, and carpenters often operate independently.

Additional Notes

Depending on the nature and duration of the work, independent contractors may need to register a business with the Camera di Commercio di San Marino.

Registering with the Istituto per la Sicurezza Sociale (ISS) ensures access to social security benefits.

Freelancers and independent contractors in San Marino often generate valuable intellectual property (IP) during their work. Understanding the nuances of ownership and exploitation rights is crucial. This article will provide a breakdown of key considerations based on the Sammarinese Civil Code and relevant legal principles.

Ownership of IP

The general rule is that the creator of the intellectual property initially owns the rights. This applies to freelancers and independent contractors unless otherwise stipulated in a contract. If the contract specifies the work as "made for hire," ownership may transfer to the client. However, this requires clear and unambiguous language in the contract specifying ownership transfer.

Contractual Agreements

A written contract is essential to determine ownership and exploitation rights of any IP created during the project. The contract should explicitly state who owns the copyright, trademarks, patents, or other IP generated. It can also grant the client specific rights to use the IP, such as a license for a defined period.

Moral Rights

Even if the client owns the IP, the freelancer retains certain moral rights. These rights include the right to be identified as the author and to object to any distortion or modification that could damage the freelancer's reputation.

Recommendations for Freelancers

Freelancers should maintain clear records to document the creation process and ownership of their work, such as through dated files and timestamps. Consulting a lawyer experienced in intellectual property law is recommended, especially for complex projects with valuable IP.

Freelancing in San Marino offers flexibility, but it also comes with specific tax and insurance considerations.

Tax Obligations

As a freelancer or independent contractor, you need to register as a self-employed person with the Office of Tributary and Economic Affairs. You are required to declare your professional income on an annual tax return filed with the same office. San Marino uses a progressive tax system, and deductions are available for legitimate business expenses.

You are also responsible for making social security contributions on your income. These contributions cover benefits like pensions and healthcare.

Insurance Options

While there are no mandatory insurance requirements for independent contractors in San Marino, considering various insurance options provides peace of mind and financial protection.

General Liability Insurance covers claims arising from property damage or bodily injury caused by your work activities. Professional Indemnity Insurance protects against financial losses if a client sues you for negligence or breach of contract.

San Marino offers public healthcare through the Institute for Social Security, but you may want to consider private health insurance for more comprehensive coverage. Income Protection Insurance provides income replacement if you become unable to work due to illness or injury.

It's highly recommended to consult a tax advisor familiar with San Marino's tax regime for freelancers. They can assist with registration, tax filing, maximizing deductions, and ensuring compliance with regulations.

Depending on your industry and income level, you may be subject to additional taxes like Value Added Tax (VAT). It's advisable to research San Marino's tax laws or consult a tax advisor.