Here's a practical guide to starting and managing a freelance business in Moldova, covering setup options, tax obligations, and financial management.
Setting up as a freelancer in Moldova is straightforward. Follow these steps:
Register Your Business:
Submit your chosen business name and necessary documents to the Public Services Agency.
Check the availability of your preferred business name during this process.
VAT Registration (if applicable):
If your business qualifies, register for VAT at the Public Services Agency.
Understand Moldova’s VAT system, including its destination principle and reverse charges policy.
Start Operations:
Once registered, you can focus on acquiring clients and managing the financial aspects of your business.
Freelancers in Moldova are classified under the professional services category for taxation. Key points include:
Income Tax:
A flat 12% tax applies to personal income, including freelance earnings.
A personal allowance of 24,000 MDL is available if taxable income is under 360,000 MDL.
Social Taxes:
Freelancers pay 27% of gross salary as social taxes.
VAT Obligations:
Although Moldova is not an EU member, it follows VAT policies like the destination principle (VAT paid in the country of consumption).
Moldova also uses a reverse charge mechanism, where consumers, not suppliers, handle VAT payments.
Moldova offers an excellent opportunity for freelancers due to its low taxes, simple registration process, and strategic location in Eastern Europe. With a growing economy and pending EU membership, it’s an ideal time to establish yourself in this developing market. By following the steps outlined above, you can build a sustainable freelance career in Moldova.