In the era of international expansion and WFH, both businesses and employees are looking for efficient solutions to their growth and development needs while keeping flexibility.
When it comes to hiring overseas the Employer of Record (EOR) solution happens to be the most efficient in terms of time, costs, and compliance. It allows companies to access and hire high-skilled and top talent in foreign countries at lower rates in a matter of days.
EOR is a fantastic opportunity to find people on temporary assignments or projects, for exploring new markets or facilitating acquisitions.
Most of the EOR service use is still in the IT Tech industry, but it also works best for hiring remote sales agents, online consultants, or back-office experts whose work can be done from a computer with internet access.
Employer of Record service for Moldova
The IT sector is now the engine of economic growth in the Republic of Moldova, the fastest growing industry and the Government's top priority. In the past three years, the industry turnover recorded a triple increase, which puts IT services at the top of the country's export level.
According to Moldova IT Park Investment Report 2020, positive evolution in the IT sector is accompanied by the increase in the number of companies opened in this period -from 1,700 to 2,300, and of the employed professionals - from 21,300 people to 29,600, ensuring the best level of salary in the Moldovian economy.
As per the estimates, in the IT field work over 25,000 professionals, servicing mainly European and US companies from various industries, public and especially private held.
The amount of investments in the information service has been doubled in 2020 in reference to the previous periods, meaning that more and more investment is being made in digital and innovation.
The amazing development trends that the IT sector in Moldova has registered over the past few years wouldn’t be possible without the local skilled IT workforce, the number of which is growing every year with numerous tech graduates, thanks to the attractive and innovative university programs and private IT schools.
Despite other emerging countries in the IT sector, the Moldova IT field has great incentives offered by Moldova IT Park - a specially created platform to support and facilitate investment incentives and development of the Tech sector through unified state reporting and simplified tax facilities - 7% flat tax rate on turnover, which is to replace:
Corporate Income Tax (4% or 12%)
Personal Income Tax (12%)
Social security and healthcare (33%)
Local and real estate taxes (variable)
Road tax (variable).
For instance, in a non-IT Park company with one employee and 10,000 monthly turnover the amount of taxes due is 45% as salary taxes and 4%/12% as income tax, a company registered in the IT Park will have to pay only 7% of monthly turnover.
The main limitation in working in the Moldovian market is the high level of bureaucracy which almost every time requires physical presence.
In Moldova, you should incorporate a legal entity and there is no other way of hiring people even for fully remote jobs. This is why we are here to save you from losing time, money, and health trying to get an answer from the government. Through our EOR service, you find the talent and we handle the rest with legal, payroll, and administrative formalities while you remain in control of employee performance. About our EOR service, how it works, and what we do you can find more on our website.
The salaries paid to IT specialists in Moldova are lower compared to our neighbors, such as Romania, Russia, or Ukraine, which face the challenge of a saturated IT industry and rising operating costs, while people here are high-skilled. You definitely can find a wide list of candidates who have IT outstanding experience, and even more:
Bilingual Romanian & Russian
99% English-speakers, in addition to French, German, and Italian language skills
100% Agile mindset
Well versed in back-end development - PHP, JAVA, .NET, Python, Go, Ruby, C/C++, C#, GO Lang, Kotlin
Flexible in OS - Android, iOS, Swift, Flutter
Teamwork crucial soft skills
Even if Moldova is a small country in Eastern Europe, it’s an ideal testing ground for piloting new services or products, and we are here to assist. We can help you find the right candidate for your project and hire it for you, cancel anytime.
If you are interested in hiring remote workers from Moldova, testing the market, or finding out more about Moldova IT Park regulations get in touch with us. Benefit now from a free hour of advisory on your expansion strategy.