Serravalle

Serravalle is San Marino's largest castello by population and its commercial-industrial center, demonstrating how micro-states develop spatial differentiation despite tiny territories. While the historic capital concentrates tourism and governance on Mount Titano's summit, Serravalle's lower elevation and Italian border access enable the manufacturing (ceramics, tiles, furniture, clothing) that diversified the economy after banking collapsed. The castello's name ('close the valley') references its defensive position guarding access routes—strategic value now expressed through logistics rather than military advantage. Serravalle hosts the republic's main shopping centers, serving not only residents but Italian cross-border shoppers attracted by San Marino's tax differentials. The 2024 economic growth of 1% reflects service sector strength, with Serravalle's retail contributing to the tourism boom and robust domestic consumption. By 2026, EU association agreement implementation could transform Serravalle's competitive position: better market access for manufacturing, but reduced tax advantages that currently attract Italian customers.