Moldova secures tax cap of 7% for technology companies until 2035

Moldova offers 20 years of support for tech growth with a rolling 7%-Steuer until 2035. How does this affect global technology investment?

The Parliament of the Republic of Moldova has passed the Law on Information Technology Parks (No. 77/2016) to extend the operational life of the Moldova Innovation Technology Park (MITP.md) from 10 to 20 years. The single tax of 7% will remain in place until 2035, reaffirming the country's commitment to promoting the IT sector.

5% GDP through tech industry

The MITP has been a driver for the growth of the tech industry in Moldova since its inception, which currently accounts for 5% of the country's GDP. In 2023, over 400 new companies were founded in the MITP and 1,900 jobs were created, making a major contribution to the national economy. The IT sector pays the highest salaries in the country and accordingly makes an important contribution to society.

The extension of the MITP aims to attract new investments and further promote technological innovation. George Teodorescu, Global Head of Risk and Compliance and Regional Director of Mixbook, emphasized that this extension is a sign of Moldova's commitment to the technology sector and provides stability for investments.

1600 IT companies

Currently, the MITP hosts over 1,600 IT companies, including more than 230 with foreign capital. This facility has helped position Moldova as an attractive technology center. Investments come mainly from the United States, Romania and Germany, but also from other countries.

Natalia Donțu, Administrator of MITP, emphasized that this extension is a strategic step to strengthen Moldova as a destination for the production of high value-added products and services.

Alternative offer in the European environment

In an economic environment that is becoming increasingly digitalized, Moldova, although not part of the EU, is about to present a highly competitive offer in close proximity to its European neighbors. A stable tax rate and the offer of straightforward IT visas via the website could mobilize additional skilled personnel. The importance of physical location for businesses is diminishing in an interconnected world, while access to talent, minimal bureaucracy and strong global connectivity are becoming more important. Moldova meets at least some of the key requirements of the modern high-tech industry and is positioning itself as a promising player in this field.