Moldova offers a very affordable cost of living, with a Cost of Living Index of 35.3 (NYC = 100). Groceries (33.0) and restaurant prices (32.5) are particularly low, contributing to overall low expenses.

Housing in Moldova is considered expensive relative to income, reflected by a Property Price to Income Ratio of 14.3 years. However, the Rent Index is significantly lower at 13.4, indicating more affordable rental options.

The purchasing power in Moldova is below average, with an index of 61.8 compared to NYC. This suggests that while living costs are low, average incomes are proportionally lower, impacting overall buying power.

Moldova operates a flat 12% personal income tax rate, with increased personal exemptions for 2025 (29,700 MDL annually). The standard VAT rate is 20%, with reduced rates of 8% for certain essential goods and services. Corporate income tax is 12%, with a favorable 7% single tax for IT sector residents and 7% for agricultural enterprises. Property tax rates range from 0.05% to 0.30% of estimated value, set by local authorities.

Moldova's startup ecosystem is growing, ranked 90th globally in 2025, with government initiatives to reduce bureaucracy and digitalize services. The Moldova Innovation Technology Park offers a competitive 7% single tax for IT companies. Challenges include access to early-stage funding and talent retention, though the country is making efforts to improve its regulatory framework and attract investment. Moldova ranked 64th out of 142 countries in the 2024 Rule of Law Index, showing improvements in anti-corruption.

Moldova has a comprehensive social security system, including mandatory social pension schemes, workers' compensation, and universal healthcare coverage through the National Health Insurance Fund. Employers contribute 24% to social security and 4.5% to health insurance, while employees contribute 6% and 4.5% respectively. Pensions and social benefits are regularly indexed, with a 6.84% increase effective April 1, 2026.

Deposits in Moldova are guaranteed up to MDL 200,000 (approximately USD 11,268) per depositor per bank by the Fund for Guaranteeing Deposits in the Banking System (FGDSB), effective January 1, 2025. The banking sector is stable, well-capitalized, and regulated by the National Bank of Moldova (NBM) in line with Basel III requirements and EU Directives. Non-performing loans were at their lowest level since the 2014 banking crisis in mid-2025.