Immigration Investor Informations

Moldova - a country full of contrasts

Immigration Investor Informations for Moldovan Citizenship - GCI. The Republic of Moldova, also known as Moldavia, lies on the doorstep of the European Union and is still relatively unknown. Get to know a country full of contrasts.

Moldova (in the national language: Moldova) or the Republic of Moldova is an agricultural country on the threshold of the industrialized nation. Free market economy in a post-Soviet society with an economic growth rate of 6%.

The opportunities this small country offers in terms of investment and construction are almost limitless. Due to the steady economic growth of recent years, Moldova proves that there is more to it than one might suspect at first glance.

Moldova - it´s time for business

For years, the economy has been growing steadily. Investment opportunities are abundant and are encouraged by the Moldovan government with tax incentives. Germany has traditionally good relations with Moldova. Germany was the first western country to open a consulate in Chisinau in 1992. Moldova offers many incentives for entrepreneurs. Some German companies have already dared to make the leap to Moldova and have done so successfully.

Should I invest as an entrepreneur in Moldova?

In our opinion, the answer would be answered with a clear "yes" and is not simply said. The Republic of Moldova continues its economic recovery. Rising investments will stimulate the economy in 2017 and 2018. Consumption, supported by remittances from guest workers, also boosts growth. The industry is increasing in 2017. Foreign automotive suppliers invest again. International Monetary Fund (IMF) and EU give fresh money.

After years of political and economic turmoil, the Republic of Moldova has embarked on a recovery course. Economic growth provided a stable basis for continuation in 2017 with a plus of 4.1% in 2017. It is helpful to reach an agreement with the IMF on $ 178.7 million under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF ). Added to this is a supplementary EU grant of € 100 million to support economic stabilization and structural reforms in the country. The measures provide the basis for improved access to external sources of public investment and strengthen the confidence of foreign investors.

Free economic zones

For industrial investment there is a network of seven free economic zones plus one free (air) port each. They enjoy a number of advantages, including those of a tax and administrative nature. The developing sectors include the automotive supply industry, textiles / clothing and electrical engineering.
A free economic zone ("FWZ") is a certain part of the territory of Moldova, where Moldovan and foreign investors can carry out certain types of activity with certain tax benefits. Goods and services that are imported into the FWZ from abroad or from the rest of the Republic of Moldova or exported outside of Moldova from the FWZ or are delivered within the FWZ are taxed with the sales tax at the rate of 0 percent.

Value added tax (VAT)

The standard tax rate is 20 percent. The reduced tax rate of 8 percent, 6 percent and the zero tax rate apply to the delivery and import of certain categories of goods. The reduced rate of eight percent applies mostly to baked goods, dairy, medicines, sugar, plants and garden products. The reduced rate of 6 percent applies to the import and delivery of natural and LPG. The zero rate is intended primarily for export goods and services. Certain businesses are exempt from VAT. An exemption means that the sales tax is not to be withheld for such transactions and that the input tax is not deductible in respect of such transactions. A company is required to register as a VAT payer if it has delivered goods or services worth more than 600,000 MDL (approximately EUR 35,502) within twelve consecutive months. An enterprise is entitled to register as a VAT payer if it has delivered goods or services worth more than 100,000 MDL (approximately EUR 5,917) within twelve consecutive months.

Income tax

The income of resident and non-resident natural persons in Moldova is subject to progressive income tax:

  • 7 percent of the annual income, which does not exceed 25,200 MDL (about 1,573 euros)
  • 18 percent of the annual income over 25,200 MDL.
Income tax on earnings is deducted from an employee's gross income, including base salary, overtime pay, bonuses, premiums and bonuses, severance pay for unused vacations, and other cash or in-kind benefits or other benefits gratuitously received by the employer. Income tax is paid by the employer to the treasury at the same time as payment of the salary.

Current economic situation of Moldova

The foundation for further growth has thus been laid. If we have aroused your interest and are seriously considering investing in Moldova, we are happy to advise you.

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