The Republic of San Marino, third smallest state in Europe (after the Holy See and Monaco) is located in the north-centre of Italy.

The establishment of official relations between the Republic of San Marino and the European Community dates back to February 1983. The current policy of San Marino in respect to the EU, along with a description of the current framework of cooperation is outlined in the Aide Memoire [226 KB] .

In 1991 a Co-operation and Customs Union Agreement between the Community and San Marino was negotiated.

In view of the introduction of the Euro, Italy negotiated on behalf of the Community an Agreement on monetary relations between the European Community and San Marino which was signed in 2000. It entitles San Marino, inter alia to use the Euro as its official currency, to grant legal status to Euro banknotes and coins and to issue a limited quantity of Euro coins with its own national sides.

Furthermore, the Commission has concluded with San Marino an Agreement on savings taxation .