Moldova, a small Eastern European nation, is on a mission to clean up its image and attract foreign investors. Once synonymous with political instability and bureaucratic challenges, Moldova is transforming into a promising destination for international businesses, thanks to progressive reforms and low corporate taxes.
Dutch entrepreneur Luc Vocks recalls his early days in Moldova. “I arrived with just a backpack,” he says, remembering how he set up DevelopmentAid, a company that now employs 180 people in Chisinau. Vocks notes that Moldova was once a “cliché of Eastern Europe,” but today, his company thrives in a much-improved environment.
At the heart of this transformation is the Moldova IT Park (MITP), a virtual tax initiative launched in 2018 to boost the tech sector. The MITP offers companies a corporation tax rate of just 7%—a significant draw compared to the UK’s 25% rate or the Netherlands’ 25.8%. It’s part of a broader push by President Maia Sandu’s administration to modernize Moldova’s economy as the country eyes EU membership by 2030.
The MITP has quickly gained traction. With over 2,000 registered companies, including 300 international firms from the U.S., UK, and Germany, MITP businesses now generate significant revenue, contributing around 6% of Moldova’s GDP and employing 22,000 people. The scheme has also streamlined immigration and social security processes, making it easier for foreign talent to work in Moldova’s growing tech sector.
Moldova’s improvements go beyond tax incentives. Dumitru Alaiba, Deputy Prime Minister, highlights the nation’s dramatic climb on Transparency International’s Corruption Perceptions Index, moving from 91st to 76th place in just one year. “Entrepreneurs can now breathe freely,” he states, citing a new era of transparency and reduced corruption.
However, challenges remain. Some local companies are finding it tough to compete with rising tech salaries driven by the MITP’s success, and Moldova’s close proximity to Ukraine’s conflict may deter some investors. Despite this, MITP administrator Marina Bzovii believes that Moldova is emerging as a critical business hub, bridging Europe and Central Asia.
In a country that once struggled with corruption and economic stagnation, Moldova’s transformation into a business-friendly tech destination is gathering momentum. With the government’s continued pro-EU stance and a supportive international community, Moldova is poised to reshape its role in the global economy.
