Moldova cleans up IT Act to attract foreign businesses

In 2018 the Moldovan government launched an initiative to grow the country's IT sector - the Moldova IT Park (MITP).

This isn't a physical business park. Instead it is virtual scheme open to all IT firms in the country - and those that wish to move there from overseas. Firms that sign up only have to pay a corporation tax rate of 7%.

The MITP is part of a wider effort by the Moldovan government to modernise and expand its economy ahead of a bid to join the European Union in 2030.

This drive is being led by Moldova's pro-EU President Maia Sandu, who this week was re-elected for a second term. And last month Moldovans voted "yes" on pro-EU constitutional changes.

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Dumitru Alaiba, Moldova's deputy prime minister and minister for economic development and digitalisation, is positive about where Moldova is heading.

"Moldova in the past 10 to 15 years has really proven that it's a country that can change very fast," he tells the BBC.

"This used to be a highly corrupt country, a country where, exactly 10 years ago, a billion dollars from our central banks just disappeared."

"We are moving very fast towards joining the EU, and we are reforming our economy at top speed. Of course, we have a long way to go."

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Member companies of the MITP don't just benefit from the 7% corporation tax rate. They also don't need to make employer social security contributions, and staff don't have to pay income tax. [...]

The MITP has also simplified immigration procedures through the IT Visa program.

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