Moldova: Taxes and Costs
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Low income tax
INDIVIDUAL TAXATION
Non-residents in Moldova are taxed only on their income from Moldovan sources. Married couples are taxed separately. Non-residents are not entitled to personal allowances.
INCOME TAX
Business and employment income earned by non-residents is subject to progressive rates. Investment income and all other items of income are mostly subject to a 10% flat rate. The calculation of the taxable base depends on which type of income is being taxed.
INCOME TAX RATES 2007 |
||
| TAXABLE INCOME, MDL (€) | RATE | |
| Up to 16,200 (€979) | 7% | |
| 16,201 (€979) – 21,000 (€1,269) | 10% | |
| Over 21,000 (€1,269) | 20% | |
| Source: Global Property Guide | ||
Rental Income
Non-residents earning rental income in Moldova are liable to pay tax at a flat rate of 5%, if the tenant is an individual. The applicable tax rate is 10% if the tenant is a legal entity. The tax is levied on the gross amount, and withheld by the tenant.
Capital Gains
Capital gains realized from sales of real estate properties are no longer taxable.
PROPERTY TAXATION
Property Tax
Property tax is levied on the estimated value of properties in villages, and the estimated market value of properties located in cities and municipalities. The actual tax rates are set annually by the local authorities and may vary between 0.05% to 0.1% for villages, and between 0.02% and 0.25% for municipalities and cities. A specified value of the property is exempt, in Chisinau it is MDL 380,000 (€22,855). The rate is increased by a particular multiplier, for the excess of the size of the property over 100 square meters. The rate is 0.02% in Chisinau.
Land Tax
Land tax is also levied by local authorities annually. Land owners are liable to pay this tax and determination of the tax liability depends on the land location, fertility and purpose. The government levies MDL 2.17 (€0.131) per grade – hectare if land is cadastre–evaluated; otherwise, the levy is set at MDL 154.20 (€9) per hectare.
CORPORATE TAXATION
Income Tax
Corporate income in Moldova is taxed at a flat rate of 15%. Allowable deductions include amortization and depreciation charges.
Capital Gains
Corporate capital gains are taxed as ordinary corporate income at 15%.
Moldova - more data and information
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