Republic of Moldova | New Investment Law Introduces a Predictable Framework for Attracting Strategic Capital and Large-Scale Projects

A New Legal Framework for Investment

The Parliament of the Republic of Moldova has approved, in the first reading, the draft of the new Law on Investment, which proposes to modernize the legal and institutional framework in the field and introduce clearer and more predictable conditions for local and foreign investors.

The draft legislation was presented to the plenary by Oleg Bivol, State Secretary of the Ministry of Economic Development and Digitalization, who emphasized the need to replace the legislative framework established in 2004 with one adapted to current economic realities and the European path of the Republic of Moldova.

Focus on Attracting Modern Investments

According to the official, the economic and investment environment has changed significantly over the past two decades. Today, competition for investment is increasingly focused on sectors with high added value, such as advanced technologies, energy, semiconductors, research and development, green technologies and modern infrastructure.

The new law aims to provide both instruments for protecting existing investments and mechanisms enabling the state to facilitate the attraction of new investments, particularly those with a strategic impact on the economy.

Strategic Investments Defined by Clear Criteria

One of the main innovations of the draft legislation is the introduction of a distinct legal regime for strategic investments.

An investment may be classified as strategic if it meets two criteria: it has a value of at least EUR 10 million and is carried out in a sector considered a priority for the economic development of the Republic of Moldova.

Priority sectors include research and development, digital technologies, the IT industry, energy, processing, mineral resources, waste recycling, transport, communications and healthcare.

Incentives for Investments Exceeding EUR 20 Million

The draft provides additional incentives for investments exceeding EUR 20 million.

Investors could benefit from the transfer of publicly owned land from the private domain into use under a commodatum or superficies arrangement, without the payment of annual rent or royalties, for a period of up to 49 years.

The draft also provides for exemptions from compensating losses resulting from the removal of land from the category of agricultural land.

Investment Agreements for Major Projects

For projects with a value exceeding EUR 40 million, the Government will be able to conclude investment agreements with economic operators.

These agreements will allow for the clear establishment of the investor’s obligations and the support measures provided by the state, with the aim of reducing institutional risks and increasing the predictability of large-scale projects.

Enhanced Protection and Greater Transparency

The draft law also introduces safeguards to protect investors against arbitrary constraints or disproportionate administrative measures that could unjustifiably restrict investment activity.

At the same time, the document places emphasis on transparency and the digitalization of interactions between investors and public authorities. Investment announcements will be required to be published in internationally used languages.

Investment agreements concluded with the Government will also have to avoid preferential clauses that could undermine fair competition.

Alignment with European Union Legislation

An important component of the draft legislation is the alignment of the Republic of Moldova’s investment legislation with the acquis of the European Union.

The document partially transposes four European regulations concerning strategic areas such as semiconductors, net-zero technologies, critical raw materials and European mechanisms for the settlement of investment disputes.

An Instrument for Attracting Strategic Capital

The new legislation is being developed in the context of the Republic of Moldova’s European integration process and national objectives aimed at promoting economic growth and stimulating investment in sectors with high potential for development and innovation.

By establishing clearer rules, incentives for large-scale projects and a distinct regime for strategic investments, the authorities seek to strengthen the Republic of Moldova’s attractiveness to both domestic and international capital.