Reasons to invest 

1.International rankings

• #48 out of 190 in “Doing Business 2020” World Bank’s report
• #13 in starting a business – 1 day and 3 procedures only
• “Stable economy” according to Moody’s International Agency 2018

2.Investment Platforms

• 7 Free Economic Zones
• 8 Industrial Parks
• 16 Multifuntional Industrial Platforms
• Moldova IT Park

3.Advanced ICT infrastructure

• 6th for lowest fixed broadband costs globally
• 100% mobile penetration and 98.2% Fiber Optic backbone network
• 4th place in the world based on % of population covered with Gigabit Internet

4.Competitive operational costs

• Highly-skilled multilingual worforce
• Feasible utility costs
• Advantageous rental prices (2-4EUR/m3 and 0.8EUR/m3 in FEZs)

5.Strategic position

• Where East meets West
• Fast shipping (2 truck days to EU and CIS countries)
• Time zone compatibility
• Proximity & culture

6.Friendly fiscal system

• Corporate income tax – 12% (7% for farmers enterprises, 6% within Free Economic Zones, 3% within Free Port)
• VAT – 20% (6% for natural gases, 8% for agri-food and pharmaceutical, 0% international transportation)
• Social insurance contributions – 23%
• Unique 7% tax for residents of Moldova IT Park

7.43 Free Trade Agreements

• Free Trade agreements with EU, CIS, CEFTA, GUAM, Turkey
• Negotiations of Free Trade agreement width China and EFTA Member State
• Member of World Trade Organization

8.Excellence in E-Raporting, E-Government and E-Documents

• One-Stop Shop – 131 documents available online
• E-public services: fiscal declarations system, biometric passport, automated border crossing system based on electronic passports, digital map, mobile digital signature and online services

9.Incentives & Taxes

By its nature, the fiscal system of the Republic of Moldova is progressive. There are two types of taxes and duties levied in this country according to the institutions in charge with their collection and management: general state (central) taxes and duties, and local taxes and duties.

These are the main central payments:

• income tax is 12% for legal entities and 12% for individuals; however in the case of legal entities this tax may be lower if we consider a farmer – 7%, a resident of the Free Economic Zone – 6%, or a resident of the Giurgiulești International Port – 3%;
• value-added tax is different: the standard rate is 20%, but for HORECA it is 15%, for pharmaceuticals and agrifood it is 8%, for natural gases 6%, and for international transportation 0%; 
• excises vary between 0.5% and 5%, depending on the tariff position of a given product; 
• customs duty may be as high as 30%, although there are plenty of exemptions and preferences; 
• road duty, which depends on the engine’s capacity or the vehicle’s weight; 
• wealth tax, which includes the land and real estate payments – up to 50% of profit; 
• dividends amount to 6%. 
• social security contributions: 18% for legal entities and 6% for individuals, and 
• health insurance – 4.5% for legal entities and 4.5% for individuals. 

10.Support to Exporters

The Moldovan Investment Agency takes part in providing financial support for the associative environment that is directly involved in export operations via the instruments stipulated by the country’s laws. Its financial contribution comes from the state budget, in the format of partial or full funding for activities:

• Participation in international exhibitions and thematic fairs;
• Participation in domestic and foreign study tours; 
• Reimbursement of expenses related to the drafting of feasibility studies; 
• Participation in international forums;
• Organization of B2B meetings; 
• Organization of public awareness campaigns and events designed to promote exports; 
• Drafting the catalogs with sectoral investment profiles

SOURCES OF FUNDING

The Government of the Republic of Moldova has at its disposal a number of sources for business finance including export operations, with resources coming the the state budget and/or donations from the country’s development partners, via various instruments and partnerships. Also the funding program covers the associative environment with an export potential. 

Main areas to benefit:

• Agriculture
• Light industry
• Information and communication
• Automotive
• Electronics
• Technology and research 
• Energy

Sector opportunities

1.Agrifood

The Republic of Moldova has been literally blessed to have a fertile soil, moderate climate, an a convenient geographic position, which overall ensure a generous bio-diversity and a high degree of adaptability of the flora and fauna to life in this country. Agriculture and processing industry are among the main pillars of Moldovan economy. 

2.Automotive

Although the Republic of Moldova is not a car manufacturing country, yet it plays an important role in the world automotive industry. The country hosts internationally known companies that operate production lines for electric wires and cables for motor vehicles, wire harnesses, electric and electronic components, luxury interiors, seat and car covers, injection mechanisms and wheel driving systems, and many others. These are well known companies in the car world: Lear Corporation, Dräxlmaier Automotive, Gebauer & Griller, Sammy Cablaggi / Kablem, Elektromanufacturing / SUMIDA, Confezioni Andrea Carcover, SEBN Sumitomo Electric Bordnetze, Fujikura Automotive, Coroplast Fritz Mueller, APM Automotive, Blacksea EMS, Dräxlmaier DSM , Arobs Software, Whetec/ MG2C, Multico / Quality Hub and Equip-Test.

The automotive items made in Moldova are shipped to the largest producers of cars and trucks including such giants as Ford, Renault, BMW, Mercedes, Volvo.

3.Electronics

The tradition of manufacturing electronic equipment in Moldova is stretching over decades,being coined as the third largest supplier of electronic equipment in the Ex-Soviet Union.Today, with over 170 companies and 16 000 employees, the electronics industry is one of the most promising industrial sectors in the country in terms of GDP contribution, employment generation and FDI attraction. The success of the sector is attributed to a strong technical and engineering foundation,covering dual VET, colleges and the Technical University. The curricula of vocational schools and universities is under continuous scrutiny of the entire industry in order to ensure compliance with the sector’s needs and standards. Moreover, the availability of a fully-fledged Dual VET system allows companies to harness highly skilled workforce at an affordable cost.

4.TAFL manufacturing is an industry with long-standing traditions in Moldova, which started successfully developing after World War II and remains one of the most important industries in the country. Since 1990, it has been restructured, upgraded and re-equipped, in order to meet market economy demands. The industry has recorded a continuous growth since 2000, significantly outperforming the overall development of Moldova’s industry. Nowadays, the sector is vibrant and it is represented by approximately 450 enterprises.

5.ICT 

The ICT industry is, beyond any doubt, the most dynamic branch of economy in the Republic of Moldova. Two major factors have played well for the unprecedented development of this sector: the fact that local specialists belong to relatively young generations and are very active from the economic point of view, on the one hand, and the advantageous conditions for experimenting with the new technologies in Moldova, including the single tax rate of 7%, on the other hand.

6.Renewable Energy

The Republic of Moldova’s renewable energy potential is one of the region’s largest. Primary energy supply figures for 2016 reveal that natural gas and petroleum products account for most of the total primary energy supply, with 29.9% and 32.0% respectively. In the same year, biofuels and wastes (including firewood and agricultural residuals) accounted for 25.0% of the primary energy sources supplied in the Republic of Moldova, which is the only local significant primary source of energy. Around 10.4% of energy is supplied directly as electricity (mainly from the Transnistrian region), while coal accounted for only 2.7% of primary energy sources supplied.

7.Machine Building

The industry for machine-building and various appliance has strong roots in Moldova’s Soviet past, a time when the pre-independence country concentrated major plants that used to manufacture installations and equipment for both civilian and military purposes. After the dissolution of the USSR, some industrial enterprises converted for alternative manufacturing while others shut down. 

8.Creative industries

Moldova has an attractive and healthy ecosystem for creative industries, with a favorable environment for collaboration, learning, and development, which enables participants to compete domestically and internationally, with the country growing to become a regional center of creativity and innovation.

The Moldovan Investment Promotion Agency

 Tel: +373 22 27 36 54

 Fax: +373 22 22 43 10 

E-mail: office@invest.gov.md