BPO & SSC

SECTOR OVERVIEW
Republic of Moldova
Key facts
Name

38.8%
Employment
Republic of Moldova rate, 2020

Capital:

3.8%
Chisinau ca. 833,000 Inflation rate,
2020
Population:
3.55 million
January 1st, 2021
GDP per capita
at PPP, 2020 $13,001
Area:
GDP current
$11.5
33,847 km2
prices, 2020,
Language: billion
Romanian (official)
Other spoken languages: Currency MDL:
1 EUR = 20.4 MDL
October, 2021

BPO&SSC 2021/2022

12% 24 350 1,585

EUR/month EUR/month
Corporate Income Tax Higher Education Customer Service Agent Average monthly wage
Institutions Salary (Junior) in IT Park

350 Modern
office stock

59,000
summer
Yearly pipeline
flights/week 550,000+
Higher Education
Students
15,000 Chișinău International
Airport (KIV)
sq. meters in over 100
buildings
University graduates
Contents
Top Reasons to Invest and Outsource in the Republic of Moldova ........................................... 2

BPO & SSC in Moldova and Development Perspectives................................................................ 5

Global Trends in BPO Can Be Met by the Opportunities Moldova Is Offering ............... 6

The Association of Business Service Leaders in Moldova ....................................................... 6

BPO & SSC Companies in Moldova ...................................................................................................7

Talents Availability ......................................................................................................................................... 8

Education ........................................................................................................................................................... 9

Education System in the Republic of Moldova ............................................................................12

Higher Education Institutions by City .............................................................................................13

Communications Infrastructure.............................................................................................................. 16

Operating Costs and Taxes ........................................................................................................................17

Moldova Innovation Technology Park ............................................................................................ 18

Salaries in BPO & SSC ..........................................................................................................................20

Office Space Availability .......................................................................................................................21

Cost of Living and Quality of Life......................................................................................................21

Testimonials ....................................................................................................................................................22

Direct Flights to Chisinau..........................................................................................................................24

Invest Moldova Agency .............................................................................................................................25

1
Top Reasons to Invest & Outsource in Moldova
Time zone compatibility
The local time zone GMT +2, offers great compatibility with countries throughout the EU
to the Middle East.

Proximity & culture

Located within 1 - 3 hours from main European hubs. Moldovan people have a great under-
standing of both Western and Eastern cultures, given their influence throughout history.
The Moldovan legal system is close to that of EU countries, while the Moldova-EU asso-
ciation foresees further harmonization.

Multilingual population
Moldovans are multilingual Most population speaks at Some regions are heavily
and have professional least one foreign language: populated with speakers of:
fluency in:
Romanian Russian English French Bulgarian Turkish
German Italian Ukrainian
Investor protection
Both foreign and domestic investors have equal protection under the Moldovan law.

Direct flights
Between Chisinau and Vienna, Frankfurt am Main, Rome, Milano, Paris, London, Moscow,
Dubai, Bucharest, Kiev, Warsaw, Brussels, Geneva, Verona, Venice, Istanbul, etc.

3h 2h 1h 1h 2h/3h

London Vienna/Frankfurt Bucharest Istanbul/Kiev Moscow

Chisinau

According to Global Passport Power, the Moldovan passport is ranked 34th by its total
mobility score.

Visa-free regime with over 100 countries

The citizens of the EU, UK, CIS, CEFTA, USA, Canada, Japan, Korea, UAE, Australia, Israel,
Turkey, New Zealand, certain countries in South America and Asia , do not need visas for
the entry on the territory of the Republic of Moldova for a period of stay up to 90 days,
during 6 months from the moment of the first entry.

For the full list of countries, whose citizens do not require a visa to enter
Moldova, access www.evisa.gov.md

2
Favorable Business Climate
STARTING AND DOING BUSINESS IN MOLDOVA IN 2021 HAS BECOME EASIER
In recent years, important steps have been taken to improve entrepreneurial climate in
Moldova and make the country more attractive to foreign direct investors.

THE REPUBLIC OF MOLDOVA IS RANKED

50 OUT OF 180 It takes
3 procedures and 1 day
COUNTRIES IN THE GLOBAL to register a business in Moldova.
SUSTAINABLE COMPETITIVENESS INDEX
Source: SolAbility research 2020, knoema.com

Investor protection
Both foreign and domestic investors have equal protection under the Moldovan law.
Moldova legislation is being rapidly harmonized with the laws of the European Union
countries, as conditions for opening and running a business must be to achieve the
world’s best performance.

Cost efficient destination

Moldova has been gaining a competitive advantage in nearshoring over its larger
neighbours, such as Romania, Bulgaria, which are facing the challenges of a saturating
industry and rising costs;
Competitive operational costs - attractive rent prices for offices and utilities;
Class A office space availability at competitive rates - Rent (per sq. meter per month) is
approximately €15 to €25 (incl. VAT);
Small tax load and some of the most competitive labor costs in Europe at all levels for
skilled specialists;
Cost of living - one of the lowest in the region. Chisinau - the most affordable city in
Europe.

E-Governance excellence
The e-Government public services provide a series of operations such as online fiscal
declarations systems, automated border crossing systems based on electronic passports,
digital maps, mobile digital signature, and other online services. The country is recognized
as a benchmark for its advancements and innovative developments in e-Government.

Based on the Level of online service index and E-participation Index, Moldova is positioned
in the ‘’very high’’ group, along with countries like Denmark, Estonia, Finland, Germany.

3
 Special government incentives: Law on IT Parks
Some BPO & SSC activities such as data processing and web-services are eligible for
coverage under IT Parks legislation, offering a special fiscal regime of only 7% tax from
turnover.

Moldova a tech savvy country

Moldovan people are quick to adopt new technologies and have an affinity for innovative
products, which makes it an ideal place for testing and prototyping. Moldova is well
positioned in terms of communication infrastructure, with mobile penetration well over
100%, and Points of presence of Fiber Optic backbone network (PoP) at 98.2%.

Percentage of individuals using Gigabit internet coverage ranking,

the internet by % of population

United Kingdom 95 Singapore 19

Poland 87 Hungary 20
Hungary 85 Romania 21
Romania 78 Moldova 27
Moldova 76 Bulgaria 35
Ukraine 70 Ukraine 55
Source: UN E-Government Survey 2021 Source: www.gigabitmonitor.com, 2021

European neighbouring policy

Moldova is a member of the Eastern Partnership with the EU and has an Association
Agreement with the European Union signed in 2014. The European Parliament recognized
Moldova as one of the countries with European Perspective. In this context, Moldova is
modernizing its administration and infrastructure and harmonizing its policies with those
of the EU.

Source: Business Class

BPO & SSC in Moldova and Development Perspectives
As per an International Data Corporation Moldova Innovation Technology Park is one
(IDC) the report, the BPO segment has a very of the most requested facilities for the ITO in-
large associated potential, due to the fact dustry (more details on pg. 18). For 2020, the
that the human resource availability is higher ICT exports reached $304 M, while the Park
and/or easier to convert than in other sectors. residents revenue reached $276.6 M from the
International companies have the opportunity next eligible activities:*
to benefit from a multilingual, educated and
affordable workforce.In addition to having the $150 M 50.7%
necessary skills, the local human resources are
also easily trainable and adaptable. As stated
by the IDC report, the attrition levels are very
$100 M
low at around 5%.*

Currently, the BPO segment represents

approximately 12% of the outsourcing $50 M 14.8%
market. It is estimated by an IDC report*, 10.5% 10.3%
that it will record significant growth,
4.2%
reaching a value of $30.42M by 2024,
compared to $17.66 M in 2019.
Software development Data processing,
web management
It is estimated that the current workforce size Other IT services
of Moldova’s BPO industry is over 3,000 people IT Consulting Software editing services
(excluding IT outsourcing), servicing European
and US markets predominantly. The service focus *Source: Moldova IT Park, 2020 Results Report
is across multiple industries, especially in Logis-
tics, Travel, and Telecom sectors. Circa 80% of Since the establishment of the entity, the
companies use English as their working language. number of residents has nearly doubled year
In terms of human capital, the Republic of Mol- by year, with over 878 residents in October
dova is an important source of multilingual per- 2021. It is expected to have a steady growth in
sonnel for global companies. As opportunities the number of residents.
for professional development and career growth In 2021, Moldova Innovation Technology Park
increase within the country, Moldovan special- has presented the 5 years strategy. The main
ists are continuously becoming more skilled and areas of development focus on community
competent. Most of the population speaks two, & networks, digital innovation, international
and often three, languages, ensuring the ability promotion, consultancy & business support,
to provide high quality services abroad. legal framework, and good governance of MITP.
While most of the companies that outsource
their operations in Moldova come from the US BPO is set to record a CAGR of 11.21% by 2024.
and Western Europe, in many cases, the projects
come from their subsidiaries in Moscow, Bu- R&D Engineering is another sub-segment
charest, or Kyiv. In this situation, Moldova has a with high potential, rising at an estimated
unique advantage with a very high proficiency CAGR of 12.24%
in both Russian and Romanian, and entire teams Other segments (UX, Quality Assurance,
can be easily moved to work a project basis ei- Product Management) have the largest po-
ther in Romania or in Russian speaking countries. tential and closest proximity with IT services
*Sources: Moldova IT Market 2019-2024, IDC 2018 and are expected to record a CAGR of 11.92%.*
Moldovan IT Players Priming for Worldwide Presence, IDC 2019

5
Global Trends in BPO Can Be Met by the Opportunities Moldova Is Offering

International companies can decrease costs by choosing to set up contact and document
processing centers in Moldova. Companies can ramp up very fast and are able to serve EU and CIS
markets at the same time. With automation emerging as a key trend in BPO, IT services or products
from Moldova in the area of BPO automation have promising potential.

Trends Opportunities

Continued focus on cost reduction from Some of the most competitive opera-
international companies tional costs in Europe - HR and other
operational costs
Shortage of domestic skills in certain Skilled labor force - expanding by al-
BPO areas in Europe most 15,000 new graduates/year
Increased demand for web-based BPO Competitive network infrastructure - one
services of the highest internet speeds in the world

The development of the BPO & SSC sector interest in shared service centers.
in Moldova can potentially create employment Moldova offers a great combination of bene-
opportunities and support local economic ficial factors, that will lead to higher value-add-
growth also in other regions where universities ed jobs in the long term. These factors are: ex-
are located, besides Chisinau, such as Balti, Ca- cellent language skills, a highly educated labor
hul, Comrat, and Taraclia. force, proximity in both culture and distance
In addition to the traditional contact centers, from the European market, an advanced and
there has been a continuous increase in higher reliable ICT infrastructure, an openness from
value services in the BPO sector in Moldova, the Government to support the sector. Since
through the addition of sophisticated services, Moldova is a very small country, it is very easy
including legal outsourcing, HR outsourcing, for foreign companies to get access to the key
financial analysis, engineering, Business Intel- people in the public sector.
ligence, etc. Also, there has been a growth of

The Association of Business Service Leaders in Moldova

[email protected]
+373 69407110
+373 68484811
ABSL Moldova is a non-governmental, non- tional aspects necessary for the industry progress.
profit business association, founded in July The industry is in the process of maturing,
2021, to be the voice of the outsourcing industry integrating the changes in technology, increas-
in Moldova. It brings together firms who con- ing efficiency and performance, and adapting
duct business in Shared Service Center (SSC), to the current labor condition. ABSL Moldova
Business Process Outsourcing (BPO), Informa- aims to become the core association with a sig-
tion Technology Outsourcing (ITO), Research & nificant role in facilitating knowledge sharing
Development (R&D), Engineering, and compa- and collaboration between member compa-
nies contributing to the sector`s evolution. nies and other stakeholders.
ABSL Moldova supports the expansion of the ABSL Moldova is finalizing the accreditation
outsourcing sector through collaboration with process by ABSL Poland to become soon the
industry, authorities, and relevant stakeholders sister organization of the Association Business
and aims at developing key strategic and opera- Service Leaders.

6
BPO & SSC Companies in Moldova
Even though the local BPO & SSC market is
still small and has a lot of potential to grow, ex-
isting companies already represent a big variety
of industries. Also, there is a range of services
that are provided, starting from basic ones (ex.
Customer Service agent), to more sophisticat-
ed (ex. Data analyst, Engineering). Moldova is
especially well suited to companies interest-
ed in smaller to medium, high-end operations,
rather than classic service centres with thou-
sands of employees.

Serviced Industries:

Travel IT Retail Marketing

Telecom Insurance Logistics Banking

According to an analyses of the market, the modern business process outsourcing firms in
Moldova provide services in 14 languages.

7
Source: Orange Systems
Talents Availability
There are ca. 15,000 graduates yearly with Bachelor’s and Master’s degrees, most of the graduates
are specialized in Business and Administrative studies, while the ICT sector has a 7% increased in
the number of graduates.
Currently, there are circa 59,000 students, with more than 8,000 students enrolled in IT and
Engineering programs, and ca. 24,380 students in business, administrative and law programs. It is
important to note that a graduate of any specialization can learn and apply their skills in order to
become an asset to an outsourcing organization. Most faculties provide specialization in a foreign
language, hence a lawyer or accountant can operate in English or French starting from university.
In terms of age, the relevant group for a BPO & SSC organizations are people between 21-35 years
old, living in cities, such as Chisinau, Balti, Comrat, Cahul, Taraclia, etc. (over 500,000 people). These
young people speak 2-3 languages, are immersed in Western culture and have a strong desire to be a
part of an international team.
The employment rate for this age group is between 15% to 50%, which means that there is plenty
of untapped potential in terms of human capital.

Employment rate by age group Population by age group

Age Rate, % Age

20-25 327,536
15-24 15
26-35 394,800
25-34 51.2
Source: National Bureau of Statistics, Moldova 2021

Moldova is very competitive in terms of skilled professionals that are relevant for operations
in SSC or BPO office, such as accountants, analysts, translators, customer service represent-
atives, finance analysts, marketing and social media specialists, etc.

8
Source: Business Class
Education
The availability of young and high-qualified labor resources is one of the key benefits of invest-
ing in outsourcing in Moldova.
The good quality of the educational system and talents availability reflect by many particular
achievements of the local talents such as being the one who has solved the mathematic problem
of Poincaré, the expertise is published in „The Center and Focus Problem. Algebraic Solutions
and Hypotheses”, UK edition, creation of the nanotubes made out of titanium dioxide, in 2019
students have successfully qualified for the semi-final of the World Scholar`s Cup, a worldwide
academic competition to test students' capacities in various skills and teamwork.
Well educated young students, majoring in relevant fields for BPO & SSC specialties like foreign
languages, finance, healthcare, commerce, etc., are available to work in BPO & SSC companies and in-
crease their productivity. Moldova has had strong educational foundation to support the development
of BPO services, including BPO services enabled by IT. You are able to serve your customers from
Moldova in EU, Turkey and CIS markets with significant cost advantages and in various languages.
The graduates are ready to be trained and join BPO & SSC firms looking for hardworking, mid and
high-end personnel. Many are trilingual, speaking Romanian, Russian and English / French / German.
Although the financial elements of salaries are still decisive, most young people and graduates are also
interested in carrier development opportunities, employer branding, and additional incentives offered
by companies like meal tickets, medical packages or financing of sports activities, flexible work hours,
remote work, last one were highly appreciated by employees during the lockdown and the period after it.

Social progress index ranking 2021

24 Higher Educational
Institutions
Italy 23
Bulgaria 43
59,033
Students, Bachelor's Romania 44
& Master's
Moldova 60
14,600 Graduates,
2020
Russia 62
Rep. of North Macedonia 63
Source: socialprogress.org/

Between 2014 and 2020, the Republic of Moldova was selected for more than 600 International
Credit Mobility projects with a total of of ca. 3,600 students and academic staff.
In 2020, the share of regional mobility has increased to 12.17%. Overall, 64% (2,567) are mobili-
ties of students and academic staff to European countries (outgoing), and 36% (1,439) are mobil-
ities of students and teachers from European countries to the Republic of Moldova (incoming).
Most projects have been implemented in partnership with Romania, Spain, Poland, Lithuania, Italy.
Erasmus+ Programme 2021-2027 programme was launched as a set of key-actions for mobility
for learners, cooperation partnerships between organizations and institutions, support for poli-
cy reform, and Jean Monnet actions in the field of higher education.

9
Higher Education
In higher education, 41.3% represent students from the field of business, administration and law,
followed by students from the education field with a weight of 12.5%, and students enrolled in en-
gineering, processing technologies, architecture and construction programs, whose share is 11.6% .
Talents grow in higher education facilities and development centres across the country. A suc-
cessful example is spreading the new technology, learning programs and digital skills through local
IT hubs, in the northern region via the Center for Innovation and Technology Transfer in Balti, and
in the south - Start up City Cahul and Comrat KIT Hub. Regional hubs will become an efficient
ecosystem to develop the local IT community and young talents.
English and French are the most popular foreign languages taught in most schools in Moldova.
Since the 1990s, most Moldovans learn English as their first foreign language. Teaching English in
regular school curricula is becoming more and more popular in Moldova, and the level of English
ability among the population is improving considerably.
Moreover, the French-speaking population in the country is impressive, being one of the highest
in CEE in terms of actual numbers of pupils and students studying French (second after Romania).
Moldova could easily follow in Romania's footsteps to become a primary supplier to French-speak-
ing countries. Besides French and English, students often prefer to learn at least one more foreign
language and they usually choose Italian, Spanish or German.
While, traditionally, most interest for BPO was for the city of Chisinau, more and more compa-
nies are also looking into opportunities in smaller towns, such as Balti, Cahul, Comrat, and Taraclia.
Over 20 language centres and their chains are available in Chisinau and in regions, providing
group or individual courses on English, French, German, Italian, Spanish, Russian, Polish, Greek,
Hebrew, Chinese, Korean, Japanese, Portugese, and other languages for over 50,000 students.

The gender split of students at bachelor & master degree

Women 58% Men 42%

Source: National Bureau of Statistics 2021
Number of students by specialty, 2021

24,380 Business, Administration and Law

9,636 Education
Engineering, Architecture and
6,829
Construction
4,007
ICT
3,715 Services
15,044 Others Source: National Bureau of Statistics

Moldovan educational system has always been a proponent of teaching foreign languages
from an early age. Many start from kindergarten, and by middle school are already
studying a second or third foreign language. While English and French have traditionally been
the most popular foreign languages, there has been an increased interest in other languages,
such as German, Japanese, Korean, Chinese, etc. , in the most recent years.

10
 Source: alfr.md

According to the EF English Proficiency Index (EX EPI) 2021, Moldova has the 27th posi-
tion in Europe and ranks 36th worldwide at the level of English proficiency for the adult
population.

Pupils studying foreigh languages in primary

and general secondary institutions

Total 301,840 %

English 242,594 72.6

French 105,238 31.5

BALTI
Russian 99,099 29.6

German 11,340 3.4

Spanish 1,631 0.5

CHISINAU
Others 3,519 1.1 X20

Source: National Bureau of Statistics, 2021

Students rate by the language of instruction, 2021

COMRAT
Language Rate, %

Romanian 82.96

Russian 14.37 CAHUL

TARACLIA
English 2
French 0.5
Others 0.1
Source: National Bureau of Statistics

11
Education System in the Republic of Moldova
Age
Post-doctorate

27 6
Doctorate
26 3-4 years

25

24 5
Second Cycle Master
Higher Education

23 1-2 years

22

21 5
First Cycle Licentiate (Bachelor)
20
3-4 years
4
19

18 3 College
2-5 years
17 3 High 3
General School Vocational
16 3 Secondary School 3 years School
Trade School 2 years X - XII 2 years
15

14 2
13
Secondary school
Compulsory Education

12 5 years
V - IX
11

10

9 1
8 Primary school
4 years
7 I - IV

5 0
One year compulsory pre-school training
4
Kindergarden
3

ISCED Competition based The baccalaureate Exit to labor Dual Vocational

level enrolment exam market Education

12
Higher Education Institutions by City

Chisinau 52,269
Students in Higher
Education 2020/2021

Population: 833,000 Graduates

Average age of population: 39,5
18-35 years old: 31%
12,787 in 2021

Employment rate: 52.6%

20
Higher Education
Average gross salary/month
Institutions
2021: 527 EUR

Numbers of students by specialty

20,510 Business, administration & law

Education
8,400
Engineering, architecture &
6,581
construction
3,831 ICT
3,715 Services
Mathematics & statistics
844
Others
11,112

Source: National Bureau of Statistics, 2021

State University of Cooperatist - Commercial

Moldova University

Technical University University of the Academy

of Moldova of Sciences

Academy of Economic International Institute of

Studies Management

Free International University of European

University Studies

State University of Medicine and

Agrarian University Pharmaceutics "Nicolae
Testemiteanu"

Ion Creanga Pedagogical Slavonic University

University

13
 "Alecu Russo" State University
Balti of Balti
Population: 151,800 Students enrolled
Average age of population: 40.1 3,625 in 2020/2021
18-35 age: 29%
Average gross salary/month: Graduates
380 EUR 1,051 in 2021

Number of students by specialty Foreign Languages, number of students

1,143 English
1,097 French
915 German
533 Russian
Business, Real Sciences Spanish
Law and Social Sciences
Ukrainian
Pedagogy, Psychology and Arts
Languages 0 100 200 300 400 500 600

"Bogdan Petriceicu Hasdeu"

Cahul State University of Cahul
Population: 124,100 Students enrolled
Average age of population: 37.8 1,085 in 2020/2021
18-35 age: 31%
Average gross salary/month: Graduates
337 EUR 308 in 2021

Number of students by specialty Foreign Languages, number of students

530
English
312
French
295
0 50 100 150 200 250 300
Law and Public Administration
Economy and Engineering
Humanities and Pedagogical Studies

14
 Comrat* Comrat State University

ATU Gagauzia Population: 148,000 Students enrolled

Comrat population: 23,204 1,893 in 2020/2021
Average age of population: 37.5
18-35 age: 29% Graduates
Average gross salary/month: 505 in 2021
300 EUR

*Comrat is the capital of the Autonomous Territorial Unit of Gagauzia

Number of students by specialty
534
Foreign Languages, number of students
295

199
English

135 German

Business, Economy 0 50 100 150 200

Law
Languages
Agriculture

Taraclia State University

Taraclia
Population: 43,200 Students enrolled
Average age of population: 39.4 190 in 2020/2021
18-35 age: 29.2%
Average gross salary/month: Graduates
295 EUR 56 in 2021

Number of students by specialty Foreign Languages, number of students

91
English
32
Bulgarian
97
0 40 80 120 160 200
History and Music
Pedagogy and Languages
Others

15
Communication Infrastructure
For a successful activity of a BPO or Shared Services Center, an advanced and reliable infrastructure
is a must. In terms of connectivity, Moldova is more developed than some of the most advanced
economies in the world, having one of the fastest internet speeds at one of the lowest costs.

IP Telephony Telecom Infrastructure

It is a widely accepted method to Moldova is well positioned in terms
communicate internationally and is of communication infrastructure, with
very common in Moldova. mobile penetration well over 100%,
and Points of presence of Fiber Optic
Mobile-Broadband Subscriptions backbone network (PoP) at 98.2%.
reached 83% in 2018.
Broadband internet affordability
High Internet Speed Moldova ranked 12th for the lowest
The Internet download speed for fixed fixed broadband costs globally as per
broadband in Moldova is higher com- ISPreview.co.uk 2020 report, and among
pared to other countries in the region. the cheapest in Europe region.

Ranking fixed broadband speeds, Mbps, 2021 Global Cybersecurity Index 2020

Country Rank Speed (Mbps) Country Rank

Romania 4 232.17 Poland 30

Poland 28 156.33 Romania 62

Moldova 29 139.61 Moldova 63

Germany 35 136.66 Czech Republic 68

Estonia 53 88.49 Bulgaria 77

Ukraine 60 76.82 Ukraine 78

Source: Speedtest Global Index, October 2021 Source: ITU Global Cybersecurity Index 2020 Report

16

Source: Agora.md
Operating Costs and Taxes
Corporate Income Tax Salary comparison customer support
(gross median annual, EUR)
23,920

12% 15% 16% 18% 19%

15,650
Moldova Albania Romania Ukraine Poland

Personal Income Tax

4,380
10% 12% 15% 18% 32% 2,800

Romania Moldova Albania Ukraine Poland Chisinau Kiev Krakow Helsinki

Source: PWC, worldwide tax summaries Source: www.teleport.org, 2021

For activities non-eligible for MITP

a) Standard structure of salaries in Moldova, 2021 (EUR)

Total Labor Cost, 1,529.33

Personal Income Tax (PIT) (12%)
122.33
Employer
Net Salary Social Fund
(24%)
1,000
296.00
Employee Health
Insurance Tax (9%)
Gross Salary 111.00
1,233.33
Source: Invest Moldova
* The calculation was made using the personal allowance for the employee (2,100 MDL/month)
Annual personal allowance 25,200 MDL is valid only for residents with annual taxable income under 360,000 MDL.

b) Structure of salaries for IT Park residents, 2021 (EUR)

The salary calculation for employees working for IT Park residents, which apply the single tax rate of 7% on turnover (replacing also
all the payroll taxes due by both employer and employee).

Total Labor Cost, 1,000

Net Salary
1,000
Gross Salary, 1,000
* Law no. 77 from 21.04.2016 on IT Parks Source: Invest Moldova
** The average forecasted monthly salary in
Moldova in 2021 is 8716 MDL ~ 427.25 EUR

17
Moldova Innovation Technology Park

The Law on IT Parks (77/2016) regulates the IT Visa - can be obtained through a simplified
creation and functioning of information and process, as an additional benefit to the IT Park
technological parks and came into force on residents. The work and residence permit can
01.01.2017. The major incentives provided to be issued for up to 4 years for Managers, and
domestic and foreign investors – residents of up to 2 years for IT Specialists, both with the
IT parks – are the following: possibility of extension.
7% flat tax on turnover - which is to replace: Virtuality - residents companies may carry out
Corporate Income Tax (CIT); Personal Income their activity anywhere on Moldova territory.
Tax (PIT); social security and medical insurance No physical presence required in the IT Park.
taxes due by employers and employees; local
and real estate taxes; road tax.
Local tax
Real estate tax
Flat tax 7%
Distribution of Corporate income tax
Personal income tax
single tax
Road tax
among
budgets Medical insurance
(employee & employer)
Revenue
after tax

Social security**

Revenue Budgets

* 7% of revenue, but not less than 125 EUR per employee (as of 2021). The single tax does not cover tax on dividends, VAT, excise taxes.
** All IT Park employees benefit from social security coverage limited to 2/3 of an average salary in the economy (EUR ~ 423 x 2/3 =
EUR 282, as of 2021)

Simplicity - or a simplified tax compliance there is a reduced risk of committing errors in

calculated on a monthly basis given the in- calculation. This in turn leads to a significantly
come recorded during the reporting month, reduced risk of sanctioning by inspection au-
without considering the cumulative data re- thorities.
corded since the beginning of the calendar 5 years guarantee - until 01.01.2026, this is
year. The residents must carry out an annual provided by the state on the activity under the
verification by an audit company accredited on preferential regime prescribed by law. The term
the territory of the Republic of Moldova. Giv- might be extended for a longer period by the
en the single payment, there is a reduced time Government decision upon it.
and staff needed for accounting purposes and

18
 Moldova IT Park in Numbers

ACTIVE RESIDENTS FORECASTED REVENUE EMPLOYEES COMPANIES WITH COUNTRIES NEWLY CREATED
FOR 2021 FOREIGN CAPITAL COMPANIES

878 266 M EUR 13,600+ 168 35 504

Source: Moldova IT Park, October 2021

Local sales 15% Women 31%

Export 85% Men 69%

Source: Moldova IT Park, October 2021

Who Can Become an IT Park Resident?

1. Any legal or natural person who is registered 2. A subject which carries out or intends to
in the Rep. of Moldova as a subject of carry out as main business activity one or
entrepreneurial activity. more activities indicated in the Law on IT
In order to maintain the resident status, sales from Parks (based on below activities).
eligible activities must be at least 70% of the total.

What Activities Are Eligible for IT Park Residents?

customized software development

manufacture of electronic compo-
activities (customer oriented soft-
nents (26.11)*;
ware) (62.01)*;

data processing, web page

computer game editing activities
management and related
(58.21)*;
activities (63.11)*;

editing of other software products

web portal activities (63.12)*;
(58.29)*;

management activities
information technology
(management and operation)
consulting activities (62.02)*;
of computing means (62.03)*;

motion picture, video, and televi-

other information technology
sion programme post-production
service activities (62.09)*;
activities (59.12)*;

other research and experimental research and experimental devel-

development on natural sciences opment on biotechnology (72.11)*;
and engineering (72.19)*;

other education n.e.c. , limited to specialised design activities

computer training (85.59)*; (74.10)*.

*According to the Classification of Activities in the Moldovan Economy (CAEM Rev.2)

19
Salaries in BPO & SSC (Monthly/Net, EUR), 2021
Moldova offers a highly skilled and cost- more competitive than wages in the region.
efficient workforce. This provides an attractive Compared to other Eastern European countries,
the basis for a successful business. The monthly Moldova’s unit labor cost is stable and slowly
wages in Moldova for BPO & SSC workers in growing. Moldova’s labor force combines
the industry sector range between 300 EUR competitive costs with high productivity, thus
– 800 EUR, depending on the region and reflecting the a key factor for strong business
professional level of the employee, which is performance.
Internet and e-commerce Logistics
Position Junior Middle Senior Position Junior Middle Senior
Internet Customs Broker 350 500 700
400 550 750
Marketing Agent Logistic Operator 450 500 800
Website Admin. 330 540 800 Head of
Internet Operator 350 450 550+ the Logistic 750 1000
E-shop Department
350 500 550+
Consultant
Human Resources
Website Support 350 480 600+
Position Junior Middle Senior
Engineering & Projecting HR Manager 450 650 850
Position Junior Middle Senior Recruitment
300 450 850
Specialist
Testing Engineer 500 1150 2500+
Mechanical 400 900 1500 Procurement
Engineer
Projecting Position Junior Middle Senior
500 1000 2000
Engineer Procurement
350 500 800+
3D Designer 550 850 1000 Specialist
Data entry/Proce- 400 500 650 Accounting & Finance
ssing operator
Programming Position Junior Middle Senior
750 1500 3000+
Engineer Accountant 350 450 700
Chief Accountant 690 850 1000
Customer Services / Sales
Financial Analyst 450 650 900
Position Junior Middle Senior
Cashier 300 370 470
Call Center Agent 350 500 750+
Auditor 350 650 1100
CS Agent 350 550 800
Economist 350 480 600
Tech. Support 350 550 700
Payroll 300 450 550
Sales Agent 350 500 700
Manager 800+ 1000+ Legal Assistance
Customer Advisor 350 450 600+ Position Junior Middle Senior
Telemarketer 300 400 500 Legal Advisor 300 500 800+
Head of the Sales 800 1100+ Lawyer Assistant 350 450 550
Department
Lawyer 580 800 1100+
Sales Consultant 350 650 900
Survey: Invest Moldova

20
 The price per square meter ranges between
Office Space Availability 15 - 25 Euro/month, including VAT, depending
on the location and class of the building.
As the interest in Moldova as an outsourcing
destination has been growing, so has the demand It is expected that in the coming years, more
for high quality and modern office space. As a and more development projects will take
result, there has also been an increase in the place, in order to meet the demand for modern,
office market offer and availability of new first- comfortable workspaces.
rate spaces at very competitive prices. Currently, The largest recent projects are Shopping
commercial property is widely available in Malldova Centre (20,000 m2), Infinity Tower
Chisinau, with over 550,000 sqm office space, (9,000 m2), Digital Park (8,000 m2), and iTower
ranging from co-working spaces to modern high (over 4,000 m2), which are already home to
rises accommodating hundreds of people. BPO and IT companies.

Source: Digital Park

Cost of Living & Quality of Life

Apartment rent (1 studio) in city centre: Moldova offers international level medical
300 EUR centers, schools, and other services necessary
Utilities (monthly), 85 sqm apt.: 120 EUR for a comfortable lifestyle, available here at a
fraction of the cost.
Movie, theatre, opera ticket 1 person: 5 EUR
Moldova is home to world-renowned wineries,
One-way ticket for public transport: 0.10 EUR
such as Cricova and Milestii Mici, both with
Taxi ride: ca. 3-4 EUR/trip within city huge underground wine cellars, and extensive
Mid-range restaurant, three-course meal for 2 wine collections. Milestii Mici was recorded
persons: 20 EUR in the Guinness World Records Book 2005, as
International hotel chains Radisson, Marriott, having the biggest wine collection in the world.
Best Western: rates from 60 EUR/night Smaller, but picturesque wine estates are Purcari,
Chateau Vartely, Castel Mimi, and others.

Consumer Prices (incl. rent) in Chisinau are:

29% lower than in Budapest "Moldova, A Wine Experience
Out Of The Ordinary" Forbes, 2019
21% lower than in Bucharest
36% lower than in Krakow
77% lower than in London "10 Places That Deserves More Travelers"
Source: www.numbeo.com National Geographic, 2017

21
We have been present on the Moldovan market for the past 25 years, providing
quality services to various private and public sector clients in Moldova. In 2019
we have launched a pilot project in Chisinau, creating a Competency Center
for Romanian and Moldovan audit departments, with colleagues providing
the necessary support via fully undertaking the responsibility for execution
of specific tasks, part of the audit methodology. Since then, the pilot project
turned into a business unit, reaching a headcount comparable to that of the
other lines of services combined, with a total headcount exceeding 70 people
in PwC Moldova. Indeed the quality of human resources in the Republic of
Moldova offers us the opportunity to explore opportunities for optimization
and efficiency of our activities, for the benefit of our clients."
Alexandru Gozun
Director Advisory Services, PwC Moldova

The Call Center started its activity since 2008. We provided our services for
the Italian market first. Once we’ve analyzed the market, we understood that
the activity could cover multiple languages as well. Now we offer mostly all
European languages, we have around 50 fix operators, that can scale easily when
necessary, and we are a part of the international networking that let us provide
BPO services in all languages worldwide. Working in Moldova empowers us
to offer our clients skilled operators at advantageous operational costs. We
choose Moldova because of development opportunities and the country is well
organized in terms of infrastructure and IT."
Marco Buti
Director
We are Moldova’s leading Telco and we have a successful nearshoring business.
Our services are an asset for our partners, who can rely on us to rationalize
their organizations and improve their efficiency. Aiming to provide the best
service, our teams achieve a 99% customer satisfaction rate year after year."
Code Factory has been working with IT specialists from Moldova for more than
10 years and we have always appreciated their professionalism and dedication. It
was an obvious choice for us to open our first delivery center outside of Romania
in Chisinau in 2013 and we are extremely happy with the decision that helped
grow our company and attracted first-class international customers."
Julien Ducarroz
Ex-Orange Moldova’s CEO, CEO Orange Poland

We entered the Moldovan market in 2007, hiring a handful of people for back-
office work. But soon, we realized that we could expand the Moldovan office,
tapping into a substantial reservoir of very talented, young, multilingual and
hardworking people. DevelopmentAid is very proud of its 100+ Moldovan
colleagues. They have come to form the heart of our organization, now covering
data-management, administration, recruitment, sales and IT. Their combined
inputs have propelled our business forward beyond all expectations, allowing
us to become the world’s leader in our field."
Luc Vocks
CEO / Owner
As a company we have been operating in Moldova for 2 years now, having by
this time 105 employees. Our decision to do business in Moldova was strongly
influenced by the specific skill-set offered by Moldovan labor, in addition to the
excellent language skills. We were also able to find a very pleasant and modern
work space (Digital Park building) which could compete with many offices
in Manhattan. Moldova in particular has offered us an educated and skilled,
multilingual workforce with an eager and reliable work ethic. It is for these
reasons that Moldova has proved to be a very attractive business environment."
Brian Crist
CEO Business Class

22
 We have come to Moldova 11 years ago with the idea to create a team of skillful
and enthusiastic people. The outcome is absolutely positive, as today Cedacri
lnternational is an imporlant support for the Group which allows it to strengthen
its position on the market."
Francesco Pippio
CEO, Cedacri
Our group has a shared service centre for many years in Moldova, where the team
is processing payroll and HR admin processes (end to end) for our European
clients. That is only possible if the market grants you access to the needed
talents. We hire young professionals from university with strong communication
and analytical skills. Our experience with Moldovan talents is very positive.
They are willing to learn quick and they are not afraid to go the extra mile if
needed. This attitude is a key factor to be successful in a fast-moving business
environment with demanding clients. Important is to give them a structure,
which we did with a proper implementation of a trainee program. Overall, I am
impressed about the motivation, language skills and willingness to learn of the
young professionals of Moldova. Therefore, I can highly recommend Moldova
as a destination for a shared service centre."
Lario Collenberg
General Manager

Samres came to Moldova in 2007 with the idea of finding well educated people
in order to manage complex information- and administration services. Access
to high educated people with high motivation is extremely important for our
success. We are glad that we found talented and ambitious people and that we
could extend from 20 to over 130 employees during these years."
Ilona Turcanu
Managing Director, Moldova

H.Essers Moldova started its activity in 2008 with only 3 employees. At this
very beginning the role was to provide administrative, simple work so that
colleagues from head office could focus more on solving complex issues with
our customers.In the meantime, our people developed high level of expertise
and professionalism.Now H.Essers Moldova has 100+ people , who represent
a part of Belgium teams, working on common goals by offering sustainable &
qualitative services for our customers."
DANIELA VICOL
Country Manager

Viatel is a is a multiservice contact center, offering a wide range of outsourcing

services since 2012 in Moldova, as well as outside the country (USA, Russia, etc.).
Over the years, we’ve gained an in-depth experience, and have continuously
improved the quality and the management of our services. Currently, our
staff represents over 120 employees and we are in constant growth. Due to
the hard-working nature and high level of education of our country’s citizens,
outsourcing in the Republic of Moldova has become much more qualitative and
economically feasible."Viatel" contact center has great potential to meet all the
requirements of the rapidly growing and changing BPO market."
Olga Bogatscaia
Executive Director
Also in Moldova:

23
 Direct Flights from Chisinau Airport*
Austria
Vienna (VIE) Italy
Bologna (BLQ)
Belarus Milan (BGY, MXP)
Minsk (MSQ) Parma (PMF)
Rome (CIA, FCO)
Belgium Turin (TRN)
Brussels (CRL) Venice (TSF, VCE)
Verona (VRN)
Cyprus
Larnaca (LCA)
Poland
Warsaw (WAW)
Denmark
Copenhagen (CPH)
Portugal
Egypt Lisbon (LIS)
Sharm-El-Sheikh (SSH)
Romania
France Bucharest (OTP)
Nice (NCE)
Paris (BVA, CDG) Chisinau Russia
KIV Moscow (DME, SVO, VKO)
Germany Sankt Petersburg (LED)
Berlin (SXF) Krasnodar (KRR)
Dortmund (DTM)
Friedrichshafen (FDH) Spain
Memmingen (FMM) Barcelona (BCN)
Frankfurt am Main (FRA) Madrid (MAD)

Great Britain Switzerland

London (LGW, LTN, Geneva (GVA)
SEN, STN)
Turkey
Greece Antalya (AYT)
Athens (ATH) Istanbul (IST)
Heraklion (HER) Izmir (ADB)
Thessaloniki (SKG) Dalaman (DLM)
Bodrum (BJV)
Ireland
Dublin (DUB) Ukraine
Kyiv (KBP)
Israel
Tel Aviv (TLV) * Flights operated before the pandemic

24
INVEST MOLDOVA AGENCY
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ASSISTANCE & INFORMATION

Provide Assist Connect

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INVESTMENT ATTRACTION & PROMOTION ACTIVITIES

G2B and B2B Missions abroad International events- Moldova Business Week
promotion of the investment
climate of the Republic of
Moldova

AFTERCARE
Platforms for Investors
Council for the promotion of projects of national importance, chaired by Prime
Minister
Economic Council to the Prime Minister of the Republic of Moldova
41 associative structures of the business community
43 state institutions
16 representatives of the scientific and research community
6 Working groups:
Eliminating constraints in entrepreneurial activity: Coordinator - American Chamber of
Commerce in Moldova (AMCHAM)
Facilitation of trans-border trade: Coordinator - European Business Association (EBA)
Stimulation and retention of private investments: Coordinator - Foreign Investors
Association (FIA)

25
 CONTACT US: Invest Moldova Agency is the Our team consists of perma-
42B, Pushkin str. , Chisinau, prime source of information nent investment attraction
Republic of Moldova, MD-2012, and assistance for potential staff, sectorial consultants,
investors. as well as regional officers.
Tel.: +373 22 27 36 54 Combining our experience,
Fax: +373 22 22 43 10 We provide tailored servic- we are able to provide you
[email protected] es for potential investors with information relevant
www.invest.gov.md throughout the investment for your decision making, as
©Invest Moldova Agency decision process. We also well as links to businesses
support existing investors in and government.
Edition 2021 / 2022 extending their operations.

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