San Marino Grapples with IGR Reform Amidst Public Protests and Union Opposition

Widespread Protests Mark IGR Reform Debate

San Marino has been the scene of widespread public debate and significant protests surrounding the proposed reform of its IGR (General Income Tax). The most recent demonstration, a second general strike, took place on October 7, 2025, following an initial strike on September 23, 2025. Thousands of citizens, workers, and pensioners gathered in Piazza della Libertà to voice their opposition to the fiscal reform bill, which continues its legislative process in the Finance Commission.

The general strikes were organized by major trade unions, including CSdL, CDLS, and USL. Union leaders declared the protests a 'full success' and emphasized that such a high level of participation cannot be ignored by the political establishment.

Unions and Industry Raise Concerns Over Fiscal Justice

The core of the opposition from trade unions centers on concerns about fiscal justice and potential discrimination. Unions argue that the proposed reform would disproportionately benefit individual businesses and self-employed workers, while failing to adequately protect medium-low incomes and creating disparities among different categories of workers.

The Associazione Nazionale Industria Sammarinese (ANIS), representing the industrial sector, has also called for the IGR reform project to be revised with a focus on equity. ANIS acknowledges the necessity of the reform to address public debt but insists on a balanced approach that introduces incentives for investments and attracts new businesses, alongside measures to contain current public spending. Furthermore, ANIS has suggested that the introduction of a VAT (IVA) system might be a more effective and coherent solution, aligning San Marino with European Union standards and simplifying commercial exchanges.

Another group, A.F.I.S. (Associazione Frontalieri Italiani San Marino), representing Italian cross-border workers in San Marino, held a public meeting on September 22, 2025, in Domagnano to discuss the IGR reform and its implications for their category, including issues of double taxation and treatment disparities.

Understanding San Marino's General Income Tax

The IGR, or Imposta Generale sui Redditi, is San Marino's unified general income tax system, applicable to both individuals and businesses. San Marino's current tax framework includes a corporate tax rate of 17%, with various incentives such as reduced rates for new companies and startups. The ongoing reform aims to generate resources to manage the country's public debt, but the methods and their equitable impact remain subjects of intense public and political debate.

Path Forward for Fiscal Reform

As the IGR reform bill progresses through the Finance Commission, the government and majority parties have indicated a willingness to consider 'correctives and adjustments.' However, unions and other stakeholders continue to press for substantial changes to ensure the reform is balanced, equitable, and truly serves the principle of fiscal justice for all citizens and economic actors in San Marino. The debate highlights the complex challenge of balancing public financial needs with the demand for fair and non-discriminatory taxation.