The relevant provision is included in the draft Law on Investments developed by the Ministry of Economy.
According to the draft, the object of the new law will be investments of resident or non-resident individuals and legal entities with permanent residence or location in Moldova or abroad. They will not include public investments, investments made by non-commercial organizations to achieve social goals (educational, charitable, sponsorship, scientific and religious).
Strategic investments will be considered as investments of at least EUR 10 million in such areas as research and development, “zero balance” technologies (solar energy, geothermal energy, carbon dioxide capture and storage technologies, energy production through nuclear decay, etc.), digital technologies and IT-industry, electronic industry, mechanical engineering; waste recycling, etc.
Subject to the approval of the draft as amended by the authors, the state will provide strategic investors with a number of benefits.
Land incentives for investments worth at least 25 million euros include the transfer of state-owned land plots for free use or use without annual rent for up to 49 years; exemption from compensation for losses caused by the exclusion of land plots from the category of agricultural land; exemption or deferral of real estate tax, any fees for the issuance of town planning certificates, construction permits and/or demolition permits for land plots and buildings, as well as for land plots and buildings that have been built on the territory of the Republic of Belarus.
One of the chapters of the draft prescribes provisions on foreign investors and investments. Thus, they will have the right to transfer to their country or other states in freely convertible currency the funds received from investment activities carried out on the territory of Moldova, under the conditions stipulated by the currency and tax legislation in force, including double taxation treaties.
These may be net profits, dividends, royalties, interests and other incomes legally obtained on the territory of Moldova, as well as payments on external credits taken for the realization of investment activities. compensations paid in case of expropriation, termination of contracts or any other forms of termination of investments, legally imported and unused material values for the purpose of their re-export, income obtained from the alienation of investment values.
The transfer of funds will be made after full payment of tax and other monetary obligations to the state authorities of the Republic of Moldova.
The new law also provides that foreign investors may acquire, in accordance with Moldovan legislation, the right of ownership of immovable property on its territory, with the exception of agricultural land and forestry fund land.
