Moldova to classify investments of €10 million as strategic

Investments of 10 million lei or more will be considered strategic

Parliament has voted in favour of the investment bill at first reading. The bill provides for the transposition of a number of European legislative acts into national law.

Oleg Bivol

According to the bill’s authors, the new investment law establishes a consistent, stable and predictable legal framework for investors, designed to stimulate domestic and foreign private investment by creating a competitive investment climate and ensuring equal access to the market.

Investments will be channelled as a priority into strategic sectors — energy, technology, healthcare and infrastructure. A separate regime is being introduced for large-scale projects, with clear eligibility criteria and special incentives, which will be coordinated through a single point of contact within the Investment Agency.

For an investment to be recognised as strategic, its value must be at least €10 million. Investments exceeding €20 million will be eligible for land-use incentives — the transfer of publicly owned land classified as private public property for use free of charge or under superficies rights, without the payment of annual rent or royalties, for a period of up to 49 years. Exemptions from compensation for losses arising from the removal of land from the category of agricultural land are also provided for.

Economic operators investing at least 40 million euros will be able to enter into agreements with the Government of the Republic of Moldova.

“These incentives involve cooperation on the part of the state to encourage investors to come and invest here in the Republic of Moldova. Decisions will be taken by a commission that is to be set up. But any major investments – over 10 million – if they are strategic and relate to certain sectors – are, in my view, very welcome. As well as bringing in capital and investment, they also have a positive impact on economic development,” said Oleg Bivol, State Secretary at the Ministry of Economic Development and Digitalisation.

It should be noted that the law’s innovations also include the abolition of the term ‘foreign investor’ and the introduction of the terms ‘strategic investment’ and ‘resident/non-resident’.

The bill will be considered by parliament at its second reading.