compensation also includes salaries received by daily/temporary workers, fees and compensation paid to directors and managers of private commercial corporations and fees received by professionals (lawyers, doctors and experts).
The Moldovan tax law does not provide any special rules regarding the taxation of education allowances provided by employers to their employees’ children under 18 years old. Such allowances are included in taxable income.
Self-employment and business income. Income earned by individuals authorized to carry out independent activities (traders, craftsmen and family associations) and income earned from selfemployment and business activities are subject to income tax.
Directors’ fees. Fees paid to directors or members of boards are taxed similarly to salaries at the standard income tax rate indicated in Rates.
Investment income. Interest earned by resident individuals on deposits with Moldovan banks is subject to a 6% withholding tax.
Taxation of employer-provided stock options. A stock-option plan is a long-term incentive program initiated within the legal entity or within its related legal entities, granting employees and/or administrators of the legal entity the right to purchase at a preferential price or to receive free of charge a certain number of participation shares issued by the respective legal entity. In general, a stock-option plan has the following main characteristics:
• Participants in the program may acquire or receive free of charge no more than 25% of the share capital, in relation to all participants in the program.
• The program must include a minimum period of three years between the moment the right is granted and the moment it is exercised (the acquisition or receipt of the shares or participation shares).
• The rights granted under the stock-option plan, at the granting moment, is considered nontaxable income.
Capital gains and losses. Capital assets for tax purposes include the following:
• Shares, debentures, bonds and other titles of ownership in entrepreneurial activities
• Private property not used for business purposes
• Land
• Options on buying and selling of capital assets
The capital gains tax base for any fiscal year equals 50% of any amount of capital gains earned during that fiscal year.
Capital gains are deductible only against capital losses.
Deductions
Deductible expenses. Individuals may deduct the following expenses:
• Expenses related to entrepreneurial activities (business deductions)
• Capital losses to the extent of capital gains
• Payments made for compulsory health insurance premiums
• Payments made for compulsory social insurance contributions
• Expenses incurred with respect to voluntary health insurance premiums or with respect to contracting medical services in the amount of one average monthly salary forecasted per economy and approved by the government for the respective year, subject to certain conditions and rules provided in the legislation
• Life insurance, health insurance, fire insurance and other natural disaster insurance premiums paid by individuals in the amount of one average monthly salary forecasted per economy and approved by the government for the respective year, for all types of contracts cumulatively
• Interest paid by individuals on loans for procurement of the first home, in the amount of one average monthly salary forecasted per economy and approved by the government for the respective year, subject to certain conditions and rules provided in the legislation
• Expenses paid during the fiscal year for the education of dependent children provided by the educational institutions listed in the Moldovan Education Code in the amount of one average monthly salary forecasted per economy and approved by the government for the respective year, applicable cumulatively for all children and all types of education
Personal deductions and allowances. The amount of income from all sources is reduced by personal deductions and allowances. Each taxpayer whose annual taxable income does not exceed MDL360,000 is granted a personal deduction of MDL29,700 per year against taxable income. Certain listed individuals are entitled to a personal deduction amounting to MDL34,620 per year. These individuals include disabled veterans, parents and spouses of war veterans, and individuals disabled in childhood.
An individual may also benefit from an additional deduction of MDL21,780 per year if the spouse is a disabled war veteran, has a certain disability due to war or has a disability since childhood and if the individual’s spouse does not benefit from the individual’s personal deduction. A deduction of MDL9,900 per year is granted for each dependent, and a deduction of MDL21,780 per year is granted to support individuals with a permanent disability.
Business deductions. Expenses incurred in business activities may be deducted from revenue earned, excluding personal and family related expenses.
Rates. The standard personal income tax rate in Moldova is 12%. For farms, the income tax rate is 7%.
Relief for losses. Income received for substitution of property for similar property lost under a force majeure event is not taxable.
Tax losses generated by carrying out a business activity may be carried forward for five years.
B. Other taxes
Wealth tax. A wealth tax of 0.8% is imposed on residential immovable property located in Moldova (except for land) that is owned by individuals if both of the following conditions are met:
• The total estimated value of the property is equal to or greater than at least 200 average monthly salaries forecasted and approved by the government for the respective year.
managerial position within a Moldovan company and if the foreign citizen has created the following workplaces or made any of the following investments in the company:
• Made investments exceeding 4,000 average monthly forecasted salaries or created at least 50 workplaces with the average monthly forecasted salary: the residence permit may be issued or extended for up to eight years (for 2024, the average monthly forecasted salary is MDL13,700; no average monthly forecasted salary for 2025 has been approved yet).
• Made investments from 2,000 to 4,000 average monthly forecasted salaries or created at least 25 workplaces with the average monthly forecasted salary: the residence permit may be issued or extended for up to five years.
• Made investments from 600 to 2,000 average monthly forecasted salaries or created at least 15 workplaces with the average monthly forecasted salary: the residence permit may be issued or extended for up to four years.
• Made investments from 200 to 600 average monthly forecasted salaries or created at least eight workplaces with the average monthly forecasted salary: the residence permit may be issued or extended for up to three years.
• Made investments from 30 to 200 average monthly forecasted salaries or created at least one workplace with the average monthly forecasted salary: the residence permit may be issued or extended for up to two years.
I. Family and personal considerations
Family members. Priority for migration is given to minors who are joining their parents, as well as to the elderly or parents who need assistance if they have no children or guardian abroad.
Children and parents under the immigrant individual’s care may also apply for migration to Moldova.
Marital property regime. All assets acquired by spouses during a marriage are subject to the marital regime of joint ownership. The legal regime of the assets of spouses may be modified by a marriage settlement, which may be concluded before the marriage is registered or anytime during the marriage. In this case, the regime will apply only to the extent it does not contradict the marriage settlement.
Forced heirship. There are five categories of legal heirs to whom the property left by deceased persons can be allocated based on some complex and specific rules provided by the Moldovan Civil Code.
Driver’s permits. Foreign nationals may drive international vehicles in Moldova only if they hold national and international driver’s licenses that adhere to the requirements of the United Nations (UN) Convention on Road Traffic.
Foreign individuals entering Moldova for a six-month stay may use their home countries’ driver’s licenses in Moldova. Foreign individuals who live in Moldova or stay in the country for more than six months should exchange their home countries’ driver’s licenses for a Moldovan license.
National and international driver’s licenses from countries that are signatories to the UN convention may be exchanged. In such circumstances, the drivers are exempt from statutory exams. Driver’s licenses issued by other countries may be exchanged for a Moldovan license after passing the required exams.