Verified Facts
The tax rates in Moldova range from 7% to 20% for personal income tax, with a corporate tax rate of 12%, a value-added tax (VAT) rate of 20%, and a capital gains tax rate that is included in the income tax rate.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Moldova has a territorial taxation system, meaning that only income earned within the country is subject to taxation, with some exceptions for certain types of income. Residency rules for tax purposes are based on the number of days spent in the country, with individuals considered residents if they spend more than 183 days in a calendar year in Moldova. Non-residents are subject to taxation only on income earned from sources within Moldova.
The tax system in Moldova is relatively straightforward, with a focus on simplicity and ease of compliance. The country has a well-developed tax administration system, with a strong emphasis on electronic filing and payment of taxes. This makes it relatively easy for individuals and businesses to comply with tax laws and regulations. However, it is still important for taxpayers to seek professional advice to ensure they are meeting all their tax obligations.
Personal Income Tax
| Income Bracket (MDL) | Tax Rate |
|---|---|
| 0 - 25,200 | 7% |
| 25,201 - 64,800 | 12% |
| 64,801 - 133,800 | 15% |
| 133,801 - 225,000 | 18% |
| 225,001 and above | 20% |
| Personal income tax in Moldova is subject to a progressive tax rate, with higher income earners paying a higher rate of tax. Taxpayers are also entitled to various deductions and allowances, including a personal allowance and deductions for mortgage interest, charitable donations, and education expenses. Tax returns must be filed electronically by May 31st of each year, and taxpayers are required to pay any tax due by this date to avoid penalties and interest. |
Corporate & Business Tax
- The corporate tax rate in Moldova is 12%, which is one of the lowest in Europe.
- Small businesses with annual turnover of less than MDL 3 million are eligible for a reduced corporate tax rate of 6%.
- Moldova has several free zones and industrial parks that offer tax incentives and other benefits to businesses that locate there.
- Businesses are required to register with the State Tax Inspectorate and obtain a tax identification number before commencing operations.
- Companies are also required to file annual tax returns and pay any tax due by March 31st of each year.
VAT / Sales Tax
- The standard VAT rate in Moldova is 20%, which applies to most goods and services.
- A reduced VAT rate of 10% applies to certain goods and services, including food, medicine, and hotel accommodation.
- Certain goods and services, including financial services and education, are exempt from VAT.
- Moldova has a tourist refund scheme that allows foreign visitors to claim a refund of VAT paid on certain goods and services.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers are based on the number of days spent in Moldova, with individuals considered residents if they spend more than 183 days in a calendar year in the country.
- Moldova has double taxation treaties with 46 countries, which can help to reduce the risk of double taxation for expats and foreign workers.
- Expats and foreign workers are required to register with the State Tax Inspectorate and obtain a tax identification number before commencing work in Moldova.
- Expats and foreign workers may be eligible for social security benefits, including pension and healthcare benefits.
- Remittance rules in Moldova allow expats and foreign workers to remit funds abroad, subject to certain restrictions and requirements.
- Expats and foreign workers are required to file tax returns and pay any tax due by May 31st of each year.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to income tax in Moldova.
- Cryptocurrency is considered a form of investment income and is subject to income tax, with gains taxed at the standard income tax rate.
- Dividends received from Moldovan companies are subject to a withholding tax of 6%, which can be reduced or eliminated under certain double taxation treaties.
- Capital gains from the sale of securities and other investments are subject to income tax, with a tax exemption available for gains from the sale of securities held for more than 3 years.