Moldova’s IT sector emerges as Eastern Europe’s fastest-growing tech hub
CHIȘINĂU, MOLDOVA — The Republic of Moldova has solidified its position as one of the fastest-growing IT service exporters in Eastern Europe.
According to the National Bureau of Statistics, Moldova’s Information and Communication Technologies (ICT) sector contributed 8.3% to the national GDP in 2023, with the IT sector alone accounting for 5.3%.
This growth outpaces regional peers such as Ukraine, Romania, Estonia, Latvia, and Lithuania, positioning Moldova as a rising digital hub in the region.
Strategic tax incentives drive Moldova’s tech growth
Moldova’s government has identified the IT sector as a key driver of economic development, implementing policies that attract foreign investment. A cornerstone of this strategy is the Moldova Innovation Technology Park (MITP), launched in 2016.
MITP offers a highly competitive single tax rate of 7% on turnover, which will remain in place until 2035. This tax regime has drawn significant interest from international tech companies and startups.
“Romania and Ukraine are leading the rankings by number of newly funded companies in MITP,” said MITP Administrator Marina Bzovîi. The cancellation of Romania’s IT tax benefits and the ongoing conflict in Ukraine have prompted many businesses to relocate to Moldova, further fueling its rapid growth.
Foreign investment surges through Moldova’s innovation park
MITP has become a critical engine for Moldova’s economic growth. Since its inception, nearly 1,600 companies have joined the park, including 178 foreign investments from countries like Romania, Ukraine, and the United States.
The park’s economic contribution has surged from €19 million (US$20 million) in 2017 to over €68 million (US$73 million) by 2023. Additionally, MITP residents generated more than €649 million (US$699 million) in revenue in 2023 — a 31% increase from the previous year.
To ensure long-term stability for investors, the Moldovan government extended MITP’s operational term until 2037. This extension preserves the favorable tax regime and expands eligible activities within the park.
Labor reforms target global tech talent
Moldova has implemented labor market reforms to attract global tech talent, including simplified work permit procedures and a special visa regime for IT professionals.
Notably, MITP allows remote work without requiring a physical presence in Moldova, making it easier for international companies to operate within its framework.
As Moldova continues aligning with European Union standards through agreements like the Deep and Comprehensive Free Trade Agreement (DCFTA), its IT sector is poised for sustained growth. With ambitions to become a fully digital state by 2030, Moldova is rapidly transforming into Eastern Europe’s new digital hotspot.
