Residence permit in Moldova

Why opt for this jurisdiction?

Moldova, an Eastern European nation with a burgeoning economy, offers a welcoming environment for foreign investment in various industries. Numerous compelling reasons drive investors to seek a residence permit in Moldova.

1. Favorable business climate. Moldova's attractiveness to investors stems from its economic reforms and simplified business registration processes. The country consistently scores well in international business environment assessments.
2. Tax system. Moldova presents an enticing tax regime for businesses, with low tax rates and incentives designed to benefit foreign investors.
3. EU accessibility. A Moldovan residence permit provides the advantage of seamless travel within the Schengen Area, eliminating the need for additional visas.
4. Economic programs. Moldova's investment programs that grant residence permits in exchange for investments in specific sectors of the economy make it a compelling choice for investors planning to launch and expand their business ventures.
5. Prospects. Obtaining a Moldovan residence permit serves as the initial step towards eventual naturalization and Moldovan citizenship. After residing in Moldova on a residence permit for ten years or more, individuals become eligible for Moldovan citizenship.

These factors collectively position Moldova as an attractive destination for foreign investment, motivating individuals from abroad to seek the necessary permits for work and business operations in the country.

Eligible categories for Moldovan residence permits

1. Foreign investors: these individuals can secure a Moldovan residence permit by investing in the country's economy, whether through establishing a new company, investing in existing businesses, or Moldovan real estate.
2. International organization employees: those working for international organizations and their families can also apply for residence permits.
3. Highly skilled specialists: highly qualified foreign professionals possessing specialized skills in demand in the local job market are eligible.
4. Persons of special interest: individuals who can bring cultural, scientific, or sporting benefits to Moldova are among the eligible categories for residence permits.

Investment potential for Moldovan residence permits

Moldova offers a residence permit program targeting foreign investors willing to inject capital into the nation's economy. To qualify for this program, applicants must meet specific requirements.

• Invest a minimum of 100,000 euros in a Moldovan business.
• Create at least ten new jobs for Moldovan citizens.
• Register and operate a business in Moldova for a minimum of three years.

Alternatively, applicants can opt to invest in government bonds for a minimum of five years, with a minimum investment requirement of €250,000. The validity of the residence permit varies based on the investment amount and the number of jobs created, with a minimum of two years and a maximum of eight years.

It's crucial to note that the specific region where an individual plans to establish a Moldovan business may have unique investment requirements. A comprehensive business plan justifying the potential economic benefits of the investment project in Moldova is essential for success.

Benefits for foreign investors participating in the residence permit program

Participation in Moldova's residence permit program via investments brings several advantages, including:

• access to the Schengen Area via a type D visa;
• the ability to hire foreign staff;
• favorable tax conditions.

Promising investment avenues in Moldova for 2024

Investment prospects in Moldova for the year 2023 are particularly promising in sectors such as

• IT development, startups, technology parks, software development, and outsourcing services.
• Energy and renewable energy sources.
• Fintech, including digital payment platforms, e-wallets, and online banking services.
• Tourism and hospitality.
• Logistics and transportation, with ongoing infrastructure developments, including road modernization, railway and aviation facility construction, and international logistics centers.
• International trade, backed by a favorable economic climate, government support for businesses, and free trade agreements with multiple countries.

These sectors present a range of investment opportunities for those seeking residency through business investments in Moldova.

Types of Visas and residence permits

Moldova offers various visa and residence permit options, catering to different purposes and durations of stay. The primary types include:

1. C Visa
   • Purpose: designed for individuals visiting Moldova for up to 90 days within a 180-day period.
   • Allowed activities: typically used for business purposes, attending scientific events, and official business trips.
   • Validity: allows multiple entries during its validity period, with a maximum total stay of 90 days within any 180-day period.
2. D Visa
   • Purpose: issued to individuals intending to apply for a residence permit in Moldova.
   • Validity: granted for a maximum of 12 months.
   • Stay period: within the 12-month validity, holders of a long-term visa can stay in Moldova for up to 90 days within a 6-month period from their first entry.
   • Multiple-entry: similar to the short-term visa, the long-term visa permits multiple entries during its validity.

These visa and residence permit options cater to diverse objectives, whether it's for business-related activities (type C) or establishing residency in Moldova (type D).

Step-by-Step guide to applying for a Moldovan residence permit in 2024

Moldova is increasingly becoming an attractive destination for foreign nationals seeking to live, work, and conduct business. The country offers numerous advantages, including a favorable business climate, cost-effective living, and convenient access to the European Union. To secure a residence permit in Moldova, foreign nationals need to meet specific eligibility criteria, which vary depending on the type of permit sought, such as those based on:

• employment
• business ownership
• family reunification
• other grounds

For instance, individuals seeking a residence permit based on employment in Moldova must secure a valid job offer from a local company, while those applying based on business ownership must have a registered business in the Republic.

Once the eligibility criteria are met, foreign nationals should commence the application process. This process can be complex and time-consuming, making it advisable to seek professional guidance and support for the immigration process to Moldova.

Here's a general outline of the steps involved in obtaining a Moldovan residence permit:

1. Identify the legal basis for your stay: determine the specific reason for your residence permit, whether it's related to employment, business ownership, family reunification, or another qualifying ground.
2. Gather necessary documents: collect the required documents based on the type of residence permit you're applying for. These commonly include
   • Passport with sufficient validity
   • Medical certificate
   • Criminal background check
   • Proof of employment or business ownership (e.g., work contract, business registration)
   • Marriage certificate (if applicable, for family reunification)
   • Proof of financial means (requirements vary by permit type)
   • Lease agreement or proof of accommodation
   • Health insurance (if required)
   • Any other specific documents relevant to your category
3. The residence permit application can be found on the Moldovan Ministry of Internal Affairs website or at the Moldovan embassy or consulate.
4. You are required to pay the required fees, which vary depending on the type of residence permit and its duration. You can find fee details on the Ministry of Internal Affairs' website or from the embassy/consulate.
5. Submit your application: present your application and supporting documents to the Moldovan embassy or consulate in your country of residence or registration, adhering to their specific submission requirements.

Possible grounds for refusal of a Moldovan residence permit

Refusal of a residence permit in Moldova may occur for various reasons, and it's crucial for applicants to be aware of these potential grounds for denial. These can include

• Failure to meet requirements: if the applicant does not fulfill the requirements and criteria established by Moldovan law to obtain a residence permit, authorities may reject the application.
• Insufficient financial resources: Moldovan law necessitates applicants to demonstrate their financial capability to support themselves and their immediate family (if residing in Moldova). Failure to provide adequate proof of income or assets, or their evaluation as insufficient, can result in refusal.
• Inadequate grounds for residence: applicants must provide compelling reasons and evidence for their desire to obtain a residence permit in Moldova, such as employment, business endeavors, or other legitimate purposes. If the grounds are deemed unsatisfactory or unconvincing, the application may be declined.
• Violations of the law: applicants with previous law violations in Moldova or other countries, particularly those involving dishonest activities, may face refusal.
• False or incomplete information: knowingly providing false or incomplete information during the application process is considered a serious violation. If it's determined that the applicant furnished false information, refusal may follow.

In the event of refusal, applicants often have the opportunity to seek an explanation and appeal the decision. It is recommended to consult an attorney specializing in immigration and residency issues for personalized guidance.

Taxation and special regimes

Moldova has entered into 48 agreements to prevent double taxation. Key tax-related details include:

• standard VAT rate in Moldova is 12%, with a reduced rate of 7%
• property tax is calculated at 0.8% of the tax base

For those interested in obtaining a temporary residence permit in Moldova, the country offers attractive incentives through its free economic zones, such as:

• a 50% reduction in corporate income tax for companies operating within these zones
• income tax exemption for three or five years when investing either $1 million or $5 million, respectively
• exemption from VAT and excise tax for companies in free economic zones

Regulation of foreign investments in Moldova

Foreign investments in Moldova are regulated through various mechanisms and legislative acts. It's important to understand the key aspects of this regulation:

• Foreign Investment Law: the Foreign Investment Law establishes the legal framework for foreign investors, ensuring that they have rights and obligations equal to those of local investors. This legal framework protects foreign investments and obligates the state to uphold the rights of foreign investors.

• National Investment Council: this advisory body is established to foster the investment environment and coordinate interactions between authorities and businesses regarding investments. The council's primary objective is to attract and develop foreign capital while providing recommendations to enhance the investment environment.
• Guarantees and incentives: Moldova offers various guarantees and incentives to attract foreign direct investment. These measures may encompass tax benefits, property rights protection, investment treaties with the government, and other actions aimed at ensuring the safety and stability of investments. These incentives collectively make Moldova an appealing destination for foreign investors.
• Registration procedures: for investors looking to invest in Moldova, simplified registration and licensing procedures exist. Questions concerning registration, licensing, and other administrative matters can be addressed with the Moldovan Investment Agency (MIA).

In summary, Moldova has put in place a legal framework and institutions to encourage and safeguard foreign investments. This regulatory environment is designed to make Moldova an enticing destination for foreign investors and to nurture a stable and flourishing investment climate within the country.

Investors can employ various methods, such as business registration and real estate investment, to secure a residence permit in Moldova, with the possibility of acquiring Moldovan citizenship after a decade of residence in the country.

For more comprehensive information on the practical aspects of obtaining a residence permit in Moldova, consider scheduling a consultation with YB Case specialists. They offer comprehensive support for obtaining residence permits in European countries.