“The new tax reform in the Republic of Moldova happened in 2018 and represents a stimulus for the local business environment development and has a positive impact especially on the real estate field in Chisinau.” – this is Vlad Musteata’s statement, the director of the real estate company ProImobil, a leader on Moldovan market.
According to him, after the new legislative package was approved, Moldova became much more attractive for real estate investors. “Taxes for investors have been considerably diminished. If so far, the capital gains due to the sale of the real estate was 9%, now it has changed to 2.2%. This is a very low tax, both for local and foreign investors.”
Another advantage accentuated by the director of ProImobil, Vlad Musteata, is the fact that lower taxes on estate purchase have favored an increase in credit sales, including the First-Time Home Buyer Program, which has contributed in Romania to the rise of the prices for estate.
Vlad Musteata added that the reform has brought lots of transparency in the field of house sales, so that lower taxes encourage owners to declare the real price of dwellings, without doubts.
The fiscal reform opens the country’s doors to both internal and foreign investment funds. As the taxes diminish, the profit promises to grow. The difference of 6,8% can make a big difference, when applied to large amounts of money – and the real estate field operates exactly at this magnitude.
A new Fiscal Paradis in Moldova?
The new fiscal reform approved in the Republic of Moldova consists of the followings:
– Lowering income taxes for physical persons from 18% to 12%;
– Lowering employer’s social contributions from 23% to 18%;
– Increasing personal exemption from 23% to 18%;
– Reducing the social contributions from employers in agriculture field from 16% to 12%;
The real estate sector isn’t the only one in which positive impact is expected after this reform. The recent pro-business measures taken will have positive economic and social effects, they will lead to new jobs, increased exports and declining migration, concludes Vlad Musteata.
For Moldova, a state that has a pretty high rate of annual emigration rate and a continuous need of well-paid jobs, the latest measures are a great opportunity. The fiscal reform is an immense step forward to a better future for the whole country.