Travellers to San Marino Face New EU Quota Limits Under 2026 Deal

San Marino and Andorra signed association agreements with the European Union in Brussels on 19 October 2026, giving both microstates access to the EU single market without joining the EU or the Schengen area. Citizens of the two countries gain the right to live and work across the EU, while EU nationals gain residence rights in San Marino and Andorra that are capped by tight annual quotas.

Key facts

• Signed: 19 October 2026 in Brussels
• What is gained: access to the EU single market without EU or Schengen membership
• San Marinese and Andorran citizens: the right to live and work across the EU
• EU nationals: residence rights in both microstates, limited by tight annual quotas
• Unchanged: non-EU residence routes and both countries' tax regimes
• Monaco: suspended its own talks in 2023 over the free-movement terms

What do San Marinese and Andorran citizens gain?

Under the agreements, citizens of San Marino and Andorra gain the right to live and work across the European Union. The announcement does not state when these rights take effect, and it gives no figures for the annual quotas that apply to movement in the other direction.

What do EU nationals get?

EU nationals gain residence rights in both microstates, but the announcement describes the quotas attached to those rights as tight and gives no numbers. Monaco, which negotiated alongside Andorra and San Marino from 2015, suspended its talks in 2023 over the free-movement terms.

What happens to non-EU residence routes?

Residence for non-EU nationals remains governed by national law, because the agreement explicitly excludes immigration policy. The announcement states that Andorra's and San Marino's non-EU residence routes are left untouched by the deals.

Do tax rules change?

No. Andorra taxes personal income at no more than 10%, exempts the first €24,000, levies no wealth or inheritance tax, taxes corporate profits at 10% and applies a general indirect tax, its equivalent of VAT, of 4.5%. A declaration annexed to the agreement states that "taxation does not fall within the scope of this Agreement".

San Marino's standard income tax runs from 9% to 35%, with a 17% corporate rate. Its residence-linked regimes also stay in place: a 7% substitute tax on foreign income for atypical residents, with an annual floor of €10,000 (approximately $11,200), and a 6% rate on pensions for qualifying retirees. San Marino's regimes for new residents likewise remain under national control.

Both microstates do commit to good governance in tax matters, covering transparency and information exchange. Within four years, they must also agree on mutual assistance in recovering tax claims, which would let EU tax authorities seek help collecting debts from people who have moved there.

What this means for travellers

San Marinese and Andorran citizens planning to live or work in an EU country should watch for the implementation details that will govern the new rights. EU nationals considering a move to either microstate face annual quotas, for which no figures are given. Non-EU investors and residents see no change to the existing residence routes, and anyone weighing a tax residence move should note that the current regimes are unchanged.

Enis Sljivo of Ancova Capital called the deal "a positive strategic development for both countries", while cautioning that its real impact will depend on implementation and on the balance between the benefits of integration and the additional regulatory obligations.