Business in Moldova
Promoting an open economy policy, Moldova offers access to a market of about 1 billion consumers, ensured by 43 free trade agreements, including those with the EU, CIS, CEFTA, Turkey and GUAM.
Moldova is an important gateway between East and West. Due to its geostrategic location, most EU and CIS destinations can be reached by truck within 2 days. This is a major advantage for many industries, such as the fashion and the automotive industry.
Chisinau – Moldova’s capital city won the ” EEA Emerging City of the Year” award at one of the most important conferences in business process outsourcing and shared services center – “CEE Business Services Summit and Awards 2020”
Moldova ranks 48th out of 190 economies analyzed in the World Bank’s “The Ease of Doing Business 2020” report; Business registration in Moldova takes 3 procedures and 1 day.
According to the International Walnut and Dried Fruit Council, Moldova accounts for 6% of global walnut exports (2018 data). A local company owns the largest walnut plant in Eastern Europe; they grow walnuts on 700 hectares.
It ranks 79th out of 193 countries on the e-government development index. Moldova has made significant progress in e-government by enhancing innovative e-government services, such as online tax declaration system, biometric passport, automatic border crossing system based on e-passports, digital card, mobile digital signature and online services.
Moldova is the 20th largest wine producer in the world.
Two of the largest wineries and wine collections in the world are located in Moldova.
More than 1.5 million bottles of wine are stored in the cellars of Milestii Mici winery in Moldova. The bottles are stored in 55 km of underground galleries dug during the extraction of lime. The first bottle was stored in 1968, and new harvests are added every year. In 2005, Milestii Mici was listed in the Guinness Book of World Records as the largest wine collection in the world.
Cricova wineries are the second largest in Moldova after Milestii Mici (the largest in the world), with 120 kilometers of tangled roads compared to MM’s 200 kilometers (120 miles). There are 15th century tunnels under Cricova. This “wine city” has warehouses, tasting rooms and other underground facilities. Located 100 meters underground, it contains 1.25 million bottles of rare wine. The oldest wine dates back to 1902. Legend has it that cosmonaut Yuri Gagarin entered the cellar in 1966 and reappeared two days later. Russian President Vladimir Putin celebrated his 50th birthday here
Moldova ranks first in the world by vineyard density and 6th in Europe by vineyard area.
Castel Mimi, the first wine castle in Moldova, was founded in 1893 and is one of the top 15 architectural masterpieces in the world of wine.
One in four active Moldovans is involved in winemaking (52,000 winemakers).
Purcari wines have been in royal demand for years and have been ordered on the tables of such historical figures as Russian Emperor Nicholas II, King George V and Queen Victoria. Since 2015, the winery received a patent confirming its status as an official supplier of the Royal House of Romania.
In 2018, the Republic of Moldova hosted the third UNWTO Global Wine Tourism Conference.
ICT, BPO and R&D.
The Republic of Moldova has 98% fiber optic backbone network (PoP) point of presence and 98% cell phone network (4G) coverage.
Moldova is among the top 5 world leaders in gigabit Internet availability (after Singapore, South Korea, Malta and Monaco).
The longest nanowire produced by a local Moldovan company will be entered in the Guinness Book of Records.
Moldova IT Park was awarded the “Best Practice of the International Technological Union Ecosystem” award (2019). Moldova IT Park introduced a flat tax of 7% of sales income, which simplified the documentation of immigration of foreigners, reduced bureaucratic barriers and, of course, virtual presence.
The Center for Nanotechnology and Nanosensors in Moldova is one of the regions in Eastern Europe that can develop and produce nanosensors on selected nanowires.
Reasons to invest in Moldova
- No. 48 of 190 “Doing Business 2020”
- No.13 for starting a business
- “Stable Economy.”
- 7 free economic zones
- 8 industrial parks
- 16 multifunctional industrial platforms
- Moldova IT Park
Developed communications infrastructure:
- 6th most expensive fixed-line telephony in the world
- 100% penetration of mobile communications
- 98.2% fiber optic backbone network
- 4th place in the world in terms of Gigabit Internet
- Qualified, multilingual staff
- Affordable utility bills
- Favorable rental prices (2-4 euro/m3 and 0.8 euro/m3 in the BMS)
- Where East meets West
- Fast delivery (within 2 days to CIS and EU countries)
- Time zone compatibility
- Proximity and common cultural heritage
Favorable fiscal system:
- Income tax – 12% (7% for farmers, 6% for BMS, 3% for businesses)
- VAT – 20% (6% for natural gas, 8% for agri-food, pharmaceuticals, 0% for international transport)
- Social security contributions – 23%
- 7% single tax for Moldova IT Park
43 free trade agreements:
- FTA – EU, CIS, CEFTA, GUAM, Turkey
- FTA negotiation – with China and EFTA
- WTO member
E-Reporting, E-Government and E-Documents:
- 131 documents available online
- E-Services: fiscal declarations, biometric passport, digital card, digital signature
Moldova’s strategic industries
880 million duty free customers.
The country has an advantageous geographical position at the crossroads of trade routes, as well as access to maritime transport through the port of Giurgiulesti.
Below is what Moldova’s most competitive industries have to offer:
- organic farming
- automotive industry
- light industry
- renewable energy
- BPO and SSC
- creative industries