Subsidised credit to support businesses

Delegated Decree no. 72 of 25 June 2018 rearranges the legislation on loans granted at a subsidised rate to start new economic activities and for the qualification, diversification and consolidation of existing businesses.

Economic operators carrying out business activities in the industrial sector, services, handicraft and trade, in any legal form, are entitled to the benefits provided for in the above Decree.
The loans granted cannot be cumulated unless they are part of a single investment project and, with reference to the same investment, cannot be cumulated with other forms of subsidised credit with interest contribution from the State. The amount of the loan cannot in any case exceed the amount of the costs related to the implementation of the project.
The benefits cannot be cumulated with forms of subsidised credit provided for under other rules or with tax benefits related to direct taxation. The economic activity can access subsidised credit even if it is already benefiting from tax incentives, provided that the investment refers to goods or projects other than those for which tax incentives have already been granted.
Business projects are eligible for subsidised credit in case of new investments aimed at developing the repositioning it on the market, preserving its competitive capacity and maintaining (unless there are specific derogations) or increasing the number of employees.

Industrial activities must have at least two permanent employees in case of a company, or one permanent employee in case of a single undertaking. Anyone who has applied for a licence and commits to hire at least one employee coming from the public unemployment list, for an indefinite period of time within 6 months of the issue of the licence, may also apply for the subsidised credit, under penalty of revocation of the subsidised credit granted and without prejudice to the obligation to return what has already been paid out.
Within 6 months of obtaining the loan, any major additional employment requirements to be met for obtaining the relevant type of benefit enjoyed must also be fulfilled.

The subsidised credit may be requested over a period of 2 years for a maximum of 2 projects, for a maximum amount of 1 million Euro for economic operators carrying out industrial activities and 500 thousand Euro for services, handicraft or commercial activities. The maximum duration of the loan is 5 years and the interest contribution from the State is equal to 70% of the rate agreed with the banks.

Business projects may consist of: acquisitions of tangible capital goods; plant, equipment and machinery; acquisitions of real estate or their extension, restructuring or modernisation aimed at improving production processes, safety at work or energy efficiency; acquisitions of intangible capital goods of industrial patent right, rights to use intellectual property; investments related to the typologies indicated above for projects, including partial ones, involving repositioning, requalification and/or change of the corporate purpose.

The Decree provides for the possibility of signing a specific agreement with the Government to obtain subsidised credit by way of derogation from the limits and conditions stated above, in the case of investment projects in property, land, plant, machinery, tangible or intangible capital goods or other investments with the aim of developing the business and/or reposition it on the market and/or promoting and improving its competitive capacity.

Innovation and eureka projects

San Marino has always considered research and development as fundamental values for its economic growth. Therefore, in 2005 it became a member of EUREKA and in 2006 it passed the first law for the promotion of industrial research activities (Law No 19 of 27 January 2006) and the implementing delegated decrees for EUREKA research projects and national projects, (Respectively, D.D. No 126 of 1 December 2006 and D.D. No 44 of 10 March 2008).

For more information visit the Trademarks and Patents Office of the Republic of San Marino