Moldova IT Park: The 7% Flat Tax Explained

The Most Competitive Tax Rate in Europe

When people first hear about Moldova’s IT Park regime, the reaction is usually skepticism. A 7% all-in tax on revenue? For real?

Yes, for real.

The Moldova IT Park (officially, the Moldovan IT Park, MITP) offers registered IT companies a single 7% tax on revenue that replaces nearly all other taxes. No separate corporate income tax, no VAT on services, no social contributions on top. Just 7% of what you earn.

For a developer or small IT company billing €100,000 in annual revenue, this means a tax bill of €7,000. Compare that to the typical 40–55% effective rate in Germany, France, or Belgium, and the difference is significant.

What the 7% Covers

The flat 7% replaces:

• Corporate income tax (normally 12% in Moldova)
• Income tax on dividends distributed to shareholders
• Social security contributions for employees (employer portion)
• Health insurance contributions
• VAT on services provided outside Moldova (the most common billing scenario for IT companies)

What it does NOT cover:

• VAT on goods (if you sell physical products, standard rules apply)
• Import duties
• Local fees (small, usually negligible)

Who Qualifies?

To access the IT Park regime, your company must:

1. Be incorporated in Moldova, typically as an SRL (equivalent to an LLC)
2. Be registered as an MITP member, this is a separate application process
3. Primarily conduct IT activities, the list of qualifying NACE codes includes software development, IT consulting, data processing, hosting, and related services

The qualifying activities cover the vast majority of what modern tech companies do: custom software development, SaaS products, IT outsourcing, QA, DevOps, data engineering, and more.

There is no minimum revenue requirement to join. There is also no maximum, large IT companies with millions in annual revenue operate under this regime.

The Employee Advantage

The 7% covers employer-side social contributions. For employees, Moldova also applies a simplified tax calculation.

Under standard Moldovan tax rules, an IT Park employee’s net take-home pay is significantly higher than equivalent gross compensation elsewhere in Europe. Combined with Moldova’s relatively lower cost of living, this makes Chisinau increasingly attractive for tech talent.

How the Registration Works

Joining the IT Park involves:

1. Incorporating a Moldovan SRL (if you don’t already have one)
2. Applying for MITP membership, submit documentation proving your activities qualify
3. Approval and registration, typically takes 2–4 weeks after complete documentation
4. Tax regime activation, starts from the first full month after approval

Ocnite handles the entire process: company formation, MITP registration, banking setup, and ongoing accounting under the 7% regime.

Common Questions

Can I access this as a foreign company?

The 7% regime is available to Moldovan entities only. However, non-Moldovan owners can own 100% of a Moldovan SRL. Many clients are EU-based individuals or companies who set up a Moldovan subsidiary specifically to access this regime.

Is this legal for EU clients?

Yes. Moldova has signed tax treaties with most EU countries. Proper structure design ensures compliance with both Moldovan law and the tax rules of where you’re resident. This is exactly what Ocnite’s tax planning service covers.

What about substance requirements?

Moldova IT Park requires that at least some real economic activity occurs in Moldova. This typically means having at least one local employee or a registered office with some operational presence. Ocnite can help you establish the required substance correctly.

Can I pay myself dividends?

Yes, and dividends from an IT Park company are included in the 7%, you don’t pay additional dividend tax on top.

The Numbers

Let’s run a quick comparison for an IT freelancer or small agency billing €150,000/year:

Jurisdiction	Effective Tax Rate	Annual Tax Bill
Germany (GmbH)	~42%	€63,000
France (SARL)	~46%	€69,000
Netherlands (BV)	~38%	€57,000
Romania (standard)	~30%	€45,000
Moldova IT Park	7%	€10,500

The difference is real, substantial, and entirely legal.

Next Steps

If you’re an IT professional or tech company looking to reduce your tax burden through the Moldova IT Park regime, Ocnite can guide you through the entire process, from initial assessment through ongoing compliance.

Book a consultation or read about our Moldova jurisdiction page to learn more.