Today, one of the most interesting objects for investment in Moldova is real estate. This fact it is grasped by both the Moldovan and foreign investors. The subject of property rights can be any individual, legal entity, state, and local authorities.
In concordance with part 2 of art. 4 of the Land Code of the Republic of Moldova, the owners of land on the right of private property may be citizens of the Republic of Moldova and foreign investors in accordance with the law.
In its turn, the Law on “Normative price and order of purchase and sale of land” in Article 4 specifies that the land in public ownership can be sold to individuals and legal entities of the Republic of Moldova and foreign investors, with the exception of agricultural lands and lands of forest fund that can be sold only to individuals and legal entities of the Republic of Moldova.
At the same time Article 9 states that right to purchase land from the state and sell land designated for construction in municipalities, towns and villages (communes) have it individuals and legal entities from Moldova and foreign investors, except the lands from water fund, engineering networks and land of public use.
In the Republic of Moldova has established the legal framework in the regulation of investment activity, which gradually improved in order to promote and protect investments through the establishment of stable and equitable conditions of legal, social and economic nature, to provide equal guarantees to foreign and national investors, as well as preventing and eliminating barriers to investment.
Since 2004, in Republic of Moldova operates the Law “On investments in entrepreneurial activity”, which provides for a foreign investor in the Republic of Moldova equitable conditions of activity and provides state guarantees of investment protection. In particular, foreign investment in the Republic of Moldova cannot be expropriated or subjected to other similar measures, that directly or indirectly deprives the investor’s property rights or rights of control over investment. Foreign investors are entitled to damages, including lost profit and moral damage suffered as a result of a violation of his rights, including damages suffered as a result of issuance by a public authority of act that violates the rights and interests of the investor, or other illegal actions of public authorities. The state also guarantees the free transfer abroad of profits and other funds in foreign currency obtained legally as a result of foreign investment.
Important legal documents that govern the relationship between the subjects of investment activities are international agreements “On cooperation and mutual protection of investments.” Such agreements are the guarantors of giving the equitable status of investments and their protection in the territory of another state. Republic of Moldova signed such agreements with several countries, including Latvia, Lithuania, Belarus, Czech Republic and Bulgaria.
In such a way, a foreign citizen and stateless persons may purchase in private possession any real estate property with the exception of agricultural lands, lands of forest fund, water fund, engineering networks and land of public use.
In order to purchase property in the Republic of Moldova, foreign citizens need a passport and proof of legal staying in the country, such as residence permit, valid visa, or confirmation of crossing the border for citizens of countries who are in visa free regime with Republic of Moldova. Any additional documents are not required.
Foreign nationals and stateless persons have the equally rights and obligations with the citizens Republic of Moldova regarding to belonging them property in the Republic of Moldova.
By the level of profitability, Moldovan real estate market occupies one of the first places in Europe and its attractiveness for foreign investors is quite high. However, the massive parish in the Republic of Moldova of foreign real estate developers and construction companies is possible only after the establishment in this country of civilized and transparent rules of business conducting. First of all, it concerns about the order of land allocation for construction and procedure of project’s documentation registration. However, the number of foreign companies already have experience in the Moldovan market of real estate, mainly in field of building offices, shopping and logistics centers, because profitability of such facilities are high enough and the payback period is considerably lower than in Central and Eastern Europe.
The above is intended to provide a brief guide only. It is essential that appropriate professional advice is obtained. Our office will be glad to assist you in this respect. Please do not hesitate to contact us.