Taxes

Taxes in Moldova

Moldova operates a flat tax system with relatively simple structure compared to progressive Western tax systems.

Personal Income Tax

Rate: 12% flat rate (since 2022)

• Applies to all income levels
• No progressive brackets
• Among lowest in Europe

Tax Residency

Tax Resident: 183+ days in Moldova during calendar year

Consequences:

• Taxed on worldwide income at 12%
• Entitled to personal deductions
• Must file annual tax return

Non-Resident:

• Taxed only on Moldova-source income at 12%
• No personal deductions (except Moldova medical insurance)
• Withholding tax applied

Personal Deductions (Residents Only)

Standard Personal Deduction: 27,000 MDL per year (~€1,350)

Eligibility: Annual income must be less than 360,000 MDL (~€18,000)

Effect: Reduces taxable income

No Deductions For:

• Non-residents (except Moldova medical insurance)
• High earners (over 360,000 MDL annually)

Social Security Contributions

Employed:

• Employee: 6% of gross salary
• Employer: 23% of gross salary
• Total: 29% (employee + employer combined)

Self-Employed: ~21.4% of 70% of income

• Complex calculation
• Consult tax advisor

Digital Nomad Visa Holders: No mandatory social/health contributions

Health Insurance Contributions (2026)

Mandatory Rates: 9% of salary

Fixed Options:

• Lower bracket: 2,527 MDL
• Higher bracket: 5,686 MDL

Digital Nomad Visa: Not required to pay

Other Taxes

Rental Income:

• Residents: 10%
• Non-residents: 12%

Capital Gains: Generally 12%

Property Tax: Varies by location and property value (typically low)

VAT: 20% (standard rate)

Tax Year and Filing

Tax Year: Calendar year (January 1 - December 31)

Filing Deadline: March 31 following tax year

Payment: Can be monthly or annually depending on situation

Tax Treaties

Moldova has tax treaties with many countries to avoid double taxation:

• EU members
• USA
• CIS countries
• Others

Benefit: May reduce or eliminate double taxation on same income

For Digital Nomads

Digital Nomad Visa Benefits:

• 12% flat income tax
• No mandatory social security
• No mandatory health insurance contributions
• Simplified tax structure

Requirements:

• Report foreign income
• File tax return if resident
• Keep records of income sources

For Employees

Withholding: Employer withholds taxes

Payslip Items:

• Gross salary
• Income tax (12%)
• Social security (6%)
• Net salary

Annual Reconciliation: May be required

For Self-Employed

Registration: Must register as self-employed

Obligations:

• Quarterly tax payments
• Social security contributions
• Annual tax return
• Keep accounting records

Complexity: Consult local accountant (affordable, €50-150/month)

Tax Compliance

Penalties: Late filing/payment penalties apply

Enforcement: Improving but less stringent than Western Europe

Recommendation: File on time to avoid issues

Comparison with Other Countries

Moldova's 12% flat tax is:

• Lower than: Most EU countries (20-50%+)
• Lower than: USA (10-37% federal + state)
• Similar to: Other Eastern European flat tax countries (Bulgaria 10%, Romania 10%)

Tax Planning Tips

1. Understand residency: 183-day rule determines worldwide vs. source taxation
2. Keep records: Document income sources and tax payments
3. Use treaties: Check if your home country has tax treaty
4. Hire accountant: Very affordable (€50-150/month), worth it
5. Digital nomads: Understand your specific obligations under DN visa
6. File on time: March 31 deadline

Where to Get Help

Tax Authorities: Serviciul Fiscal de Stat (State Tax Service)

Accountants: Widely available, affordable

Online Resources: Limited in English

Expat Forums: Share experiences and recommendations

Tax ID Number

Personal Number (IDNP): Required for all tax matters

Obtaining: Through local authorities when registering residence

Importance: Needed for banking, employment, taxes