Guide to Property Taxes in Moldova

Non-resident individuals are generally subject to Moldovan tax on income derived from Moldovan sources, including income from real estate situated in Moldova. Married individuals are generally taxed separately.

Income Tax

The standard personal income tax rate in Moldova is 12%. However, the taxation of non-residents depends on the nature and source of the income and whether tax is collected through withholding.

Rental Income Tax

Rental income derived by a non-resident individual from real estate situated in Moldova is generally subject to Moldovan income tax.

For a qualifying non-resident individual, rental income from Moldovan immovable property may be subject to tax at 12% of the monthly contractual rental amount, depending on the status of the payer and the applicable withholding rules.

This should be distinguished from Moldova's 7% special rental tax, which applies to individuals who are not carrying on entrepreneurial activity and rent immovable property under the specific domestic rental regime.

Accordingly, for a standardized non-resident foreign property investor, the 12% gross-rental rate is the more appropriate tax rate.

Capital Gains

Moldova does not impose a separate capital gains tax on individuals.

For private individuals, the taxable capital gain is generally equal to 50% of the difference between the property's disposal proceeds and its qualifying tax basis, including eligible acquisition-related costs.

The resulting taxable amount is included in the individual's taxable income and generally subject to the applicable 12% income tax rate.

Consequently, where the full 50% inclusion rule applies, the effective tax can broadly equal 6% of the qualifying economic capital gain.

Corporate Income Tax

Income and capital gains earned by companies are taxed at a flat rate of 12% on profits

Taxable income is calculated by deducting income-generating expense from gross income. 

Property Buying Costs and Taxes in Moldova

Property Tax

Owners of Moldovan real estate are generally subject to annual Real Estate Tax, regardless of whether they are resident or non-resident.

For residential real estate assessed for tax purposes, the statutory framework establishes a minimum rate of 0.05% of the taxable assessed value, with the precise rate determined by the relevant local authority.

For agricultural land with buildings, the minimum rate is 0.1%, while qualifying non-residential and non-agricultural real estate is generally subject to a 0.3% rate.

Since 2023, the previous statutory maximum rate for certain assessed residential properties has been removed.