Moldova intends to gradually phase out the special tax regimes for IT parks and free economic zones as part of its accession to the European Union. To this end, the government is requesting transition periods of six and five years, respectively. However, free zones and various investment support mechanisms continue to operate within the EU itself. Therefore, it is important for Moldova not only to secure a grace period but also to negotiate terms that will allow businesses to remain competitive after the benefits are revised.
On November 2, the Ministry of Finance held public consultations on the country's negotiating position under Chapter 16, "Taxation." This involves adapting the tax regimes for IT parks and free economic zones, tax incentives for agriculture, property taxation, utility services, and fuel excise taxes. Specific proposals are contained in the government's official negotiating position on Cluster III, "Competitiveness and Inclusive Growth."
The document provides for the gradual phasing out of the special tax regime for free enterprise zones (FEZs), or free economic zones, over a five-year period following Moldova's accession to the EU. According to the government's estimates, this will affect 52 economic operators. A six-year transition period is being requested for IT parks. For now, these are proposals from the Moldovan side and not terms agreed upon with Brussels.
At the same time, current legislation provides for the continuation of the preferential regime for FEZs until 2034, and the special tax regime for IT parks until December 31, 2035. It is of fundamental importance to investors how future agreements will align with these obligations. Since the date of Moldova's accession to the EU has not yet been determined, the actual deadlines for the completion of the transition periods also remain unknown.
European practice shows that EU membership does not preclude the existence of special economic regimes. The European Commission publishes a list of active free zones where special customs procedures are in place. However, these cannot be equated with Moldova's special economic zones: tax benefits for enterprises are regulated separately, including by state aid and competition rules. Nevertheless, European legislation permits regional investment incentives and support for specific sectors of the economy, provided that established conditions are met.
The EU's enlargement experience also confirms the possibility of gradual adaptation. Upon joining the European Union in 2004, a number of countries were granted transition periods for certain provisions of tax legislation, including VAT and excise taxes. Such deferrals made it possible to take into account the state of national economies and avoid a sudden change in the tax burden.
The revision of tax incentives for the IT industry is particularly sensitive. By the end of 2025, the information technology and telecommunications sector accounted for 7.5% of Moldova's GDP, and in the first half of 2026, it accounted for 7.3%. These figures represent the entire industry, including telecommunications. At the same time, a significant portion of the IT business operates under the preferential regime of the Moldova Innovation Technology Park (MITP), making its future particularly important for the industry.
In 2025, sales by MITP residents reached 18.9 billion lei, an increase of 24.3%, and in the first half of 2026, they totaled 10.7 billion lei, a 19.1% increase over the same period the previous year. By the end of June, the park comprised 2,931 companies with more than 27,000 employees.
The MITP regime is based on a flat tax of 7% of revenue, which replaces a number of standard taxes and mandatory payments. For companies that primarily serve foreign clients, its advantage lies not only in the level of the tax burden but also in the simplicity of administration and the predictability of expenses. Therefore, changes to the regime could affect Moldova's attractiveness as a hub for the international IT business.
Free economic zones also play a significant role in industry and exports. According to official data for 2025, 240 resident companies operated in six FEZs, accounting for about 13.7% of the country's industrial workforce—12,900 people. Cumulative investments reached $651.8 million, and payments to the public budget totaled 959.1 million lei. In 2024, residents exported industrial products worth 12.11 billion lei—2% more than the previous year. Of the industrial output produced, 94.8% was exported abroad, and free trade zones accounted for 12.4% of Moldova's total merchandise exports. However, in 2023, this figure stood at 15.7%, indicating a decline in the relative share of free zones in the country's exports.
For industrial enterprises in free trade zones, the consequences of changes to the tax regime could be long-term. Investments in buildings, equipment, and production lines are planned for decades, and tax conditions are taken into account when making decisions about where to locate production. A five-year transition period will allow for preparation for the changes, but it does not in itself indicate what support mechanisms will be available to enterprises after its conclusion.
Herewith, maintaining tax incentives should not become an end in itself. Their effectiveness must be assessed based on the volume of investment, jobs created, exports, and budget revenues. Preferential treatments that do not yield comparable economic results or violate competition rules may need to be reviewed. Such decisions should be based on economic analysis, not merely on a formal desire to bring legislation into line with European standards more quickly.
In other areas, the government is also proposing a gradual transition. A four-year transition period is requested for certain VAT exemptions on the sale and lease of land and residential real estate, and a five-year period for agricultural resources and equipment. The same amount of time is proposed for raising the excise tax on diesel fuel to the European minimum of €330 per 1,000 liters.
The longest transition period—ten years—is requested for public utilities and electricity provided to the population. The negotiating position calls for the subsequent phased introduction of a reduced VAT rate of 5% between 2037 and 2039. Thus, the government acknowledges the need to mitigate the impact of tax harmonization on household budgets.
However, a significant gap remains regarding investment regimes. The negotiating position explains the need for time to phase them out but does not specify what support mechanisms will replace the current incentives. Meanwhile, European rules allow for certain forms of investment incentives, and Moldova needs to assess the possibilities for their application in advance.
European integration requires changes to tax legislation but does not oblige the country to voluntarily give up all available economic advantages before the agreed-upon deadlines. If existing regimes need to be changed, businesses must know in advance what will replace them. Otherwise, Moldova risks abandoning effective investment attraction tools without having prepared comparable alternatives. For an economy that still needs to close the gap with European countries, such haste could prove more costly than the tax incentives themselves. // 04.11.2026 - InfoMarket.