Other factors that I did include in the slides include:Office space – much more affordable than in BucharestPPP per capita is twice as high as GDP per capita – points to greater spending power per dollar in MoldovaBank liquidity is relatively high and local banks not as dependent on international borrowing for local lending
Eight zones have been established, mainly outside Chisinau. Firms doing business within them get discounts on infrastructure fees (transport, water, gas, and electricity), VAT and duties exemptions, discounted or zero tax rates depending on the activity, and 10 years of protection from changes to the law that could adversely impact businesses. There are also a multitude of additional benefits related to the transfer of profits and ownership titles, trade of goods and services within the free zones, and tax exemptions related to the level of overall investment. The same rules and exemptions apply to industrial parks, which are designed and located to benefit specific regions of the country. An additional incentive to organizations located within industrial parks is freedom to use land as needed, sidestepping the usual bureaucratic hurdles associated with zoning and permissions.Legal protection for contracts is very strong in Moldova; and it ranks 26th world wide in contract enforcement, according to World Bank. Moldova has free trade agreements with every CIS country except Tajikistan, is a member of the World Trade Organization, and has signed on to the Autonomous Trade Preference Agreement with the EU (until 2015, when it will likely be replaced with another agreement) and several regional free-trade and economic cooperation agreements. Brain drain – not really a government issue, but I included it here as the government tax program for IT specialists is related.
Nearshoring in moldova mark yates final (1)
Doing IT in Moldova– what’s ready, what to plan forMark YatesLead Analyst, IDC Government Insights