Electronics Sector in Moldova

7%

Unique Tax on turnover in IT virtual Parks

4.18 €/hour

Industry full load labor cost

258 €

Minimum salary in 2024

130

Electronics companies in 2023

$535 M

Equipment & electronics
exports in 2022

13,600+

Industry employees

1,000 €/job

Job creation incentive (ATU Gagauzia)

43%

Employment rate in 2023

895 M

Customers duty free market

4 hours

Business entity registration

500 ha

Free buildable area in FEZ all over the country

Industry Overview
Electronics in Moldova

Over the past few years, Moldova’s electronic business landscape has witnessed a notable transformation, as evidenced by key indicators in the corporate sector. The data paints a compelling picture of the country’s economic evolution, highlighting both continuity and change. From 2018 to 2022, the sector associated with electronic sector has experienced significant shifts in the realm of active companies, employment figures and turnover. In 2023, the sector associated with the electronics industry was represented by 130 active companies generating sales of EUR 377 million and a total number of 13.6 thousand employees.

Companies

130

active companies in 2023

Employees

13,600

employees in 2023

Income

EUR 307 M

turnover in 2022 (2.7 times more compared to 2015)

Export

$535 M

Exports (HS code 85 - equipment and electronics) of USD 535.0 million in 2022 (double compared to 2016)

Products

88.9%

of Moldova's electronics exports are wire harnesses, while

6.2%

are transformers & inductive components

Electronics
Competitive Advantages

The electronics industry is based on wide range of activities and niche knowledge such as semiconductors, PCBs, transformers, sensors, nano wires, as well as R&D and engineering.

Did you know that?

The electronics industry covered a wide range of activities such as semiconductors, PCBs, transformers, sensors, navigation systems and electronics for naval ships and submarines.

Competitive Advantages

PCBs Design & Manufacture

EMS & ECM

PCBA, SMD & THT montage

Inductive Components

Electronic devices design & manufacture

Nano Sensors & Micro Wires

Torroid cores & common mode chokes

Embedded systems and R&D

Cable assemblies and wiring harness

Electronic components & systems

PCB laminates

Education

Well-educated young professionals from sector-specific faculties

The population of Moldova comprises ca.  2.51 million people, with ca. 2 million above 15  years and ca. 935.0 thousand representing the  active labor force.

Dual VET system, colleges, and Technical University programs

Moldova has strong technical faculties colleges, and Centers of Excellence, e.g. the Balti Polytechnic College, Technical University  College, the Excellence Center in Power  Engineering and Electronics.

Research & Development

R&D is covered by the Technical University of Moldova. Research is covered by the Institute of Electronic Engineering and Nanotechnologies,  as part of Technical University.

Operating
Costs and Taxes

Moldova commends a highly-skilled, competitively priced workforce.

Labor costs are among the lowest in the region and low enough to ensure cost-effective operations. This provides an attractive basis for a successful business.

The average gross salary in Moldova in the industry sector in 2022 was around 480 EUR, varying from 326 EUR to 629 EUR depending on the region and the professional qualification of the employee, which is considerably less than the average in the region. The forecasted average labor cost in national economy is ca. 705 EUR for 2024.

Evolution of the average gross salary in the economy

480 €

Forecasted average labor cost in 2024

7%

Flat tax on turnover for IT Virtual Parks

1,000

€/job

Job creation incentive in ATU Gagauzia

PayWell Study, 2023

The most representative local salary survey for IT sector. Salaries offered by 46 participants, with 4,800 employees, and 250 job positions analyzed.

Moldova Innovation
Technology Park (MITP)

Moldova Innovation Technology Park (MITP), Europe’s first e-Park, catalyzes innovation and growth in the IT, R&D, and Engineering sectors through strategic incentives.

Unique Taxation

MITP residents benefit from a flat tax rate of 7% on turnover, which encompasses and simplifies multiple tax categories, including corporate income, personal income, social security, medical insurance, local, real estate, and road taxes.

IT Visa

The MITP framework facilitates a simplified visa process for IT specialists and managers, granting up to four years of residency with options for extension, encouraging the attraction of top global talent to Moldova’s tech sector.

Ease of Business

The Virtuality provision allows MITP residents to operate throughout Moldova without a mandatory physical presence within the park premises, granting operational flexibility and reducing overhead costs.

Simplified Processes

Compliance with tax obligations is simplified to a monthly declaration of income, with no need to aggregate data over the year. An annual audit by a Moldovan-accredited firm ensures compliance, while minimizing the administrative burden on companies.

Extended Guarantees

MITP offers a statebacked guarantee on the tax and legal regime, securing the preferential treatment outlined upon activity inception. The government’s approval of extending MITP’s operational term from 10 to 20 years, effective until 2037, alongside the extension of the state guarantee until 2035, ensures longterm stability and growth potential for the sector.

MITP in numbers

6% GDP share

*of Moldova IT sector

552M EUR

Forecasted revenue for 2023

11% country’s export

*of Moldova IT sector

1,700+

Active residents

1,200+

Newly created companies

20,700+

Employees

230+

Companies with
foreign capital

39

Countries

At the same time, the Law on IT Parks and the Tax Code stipulate the minimum amount of the single tax to be paid by Park’s residents, which is: 30% of the average monthly salary in the economy, forecasted for the year of the tax period of the tax concerned per employee (who worked during the tax period for at least one day on the basis of an individual employment contract).

The status of the MITP resident may be obtained by any legal or natural person who is registered in the Republic of Moldova as subject of the entrepreneurial activity and who carries out or intends to carry out as main business activity one or more types of business activities indicated in Article 8 of IT Park’s Law. The main business activity should be the one that generates 70% or more of the revenue from sales.

What activities are eligible for IT Park residents?

Custom software development, specifically client-oriented software (62.01)*

Editing activities related to other software products (58.29)*

Other research and experimental development on natural sciences and engineering (72.19)*

Other educational activities with a focus on computer training (85.59)*

Editing of computer games (58.21)*

Other information technology service activities (62.09)*

Manufacturing of electronic components restricted to microprocessors and integrated circuits. (26.11)*

Other labor supply services (78.30)*, provided exclusively for international markets

Call center operations (82.20)*, with a focus on export-oriented services

Management activities (management and operation) of computing means (62.03)*

Data processing, web page management and related activities (63.11)*

Specialised design activities that employ high-performance computers (74.10)*

Research and experimental development on biotechnology (72.11)*

Web portal activities (63.12)*

IT consulting services (62.02)*

Motion picture, video and television programme post-production activities (59.12)*, exclusively for the computer games industry, limited to the following services:

digital color correction and rewrapping services (59.12.13);
sound editing and design services (59.12.17);
sound recording and music publishing activities (59.20)*, exclusively for the computer game industry, limited to original sound recordings (59.20.13);

Post - production stage of production of movies, video and television programs (52.12)*,based on the use of high – quality specialized computer equipment, limited to: