Renting Through an SRL vs. as an Individual: Which Is Better for Tax in Moldova

14 June 2026 · KX Estate Team

For a small volume of rentals with almost no expenses, leasing as an individual is simpler and cheaper: rental income carries a final income tax (the rate commonly applied is 7%) and minimal paperwork. An SRL fits better with high deductible expenses or several properties, but adds 12% on profit, 6% on dividends, and accounting work.

Renting as an individual: how much tax and how it works

An individual’s income from leasing property carries a final income tax; in practice the rate commonly applied is 7%. “Final” means that once the tax is paid, the income is not recalculated anywhere else, and reporting stays minimal. This is the simplest regime for an owner of one or two units.

What is important to understand:

• the tax is calculated on the amount stated in the contract, not on profit. Expenses for repairs, management, or utilities are not deducted from the base;
• you do not need to register as an entrepreneur. An individual with an IDNP is enough;
• always verify the rate and payment procedure with the SFS, since regimes and conditions change.

Moldova’s rental market is becoming more formalized: from January to May 2026, 47.5 million lei in rental income tax entered the budget, 27.9% more year on year, while the number of registered lease contracts (contract de locațiune) grew by 34% (≈15,788). Source: SFS, 2026. So an unregistered contract is an increasingly visible risk.

Renting through an SRL: 12% on profit plus 6% on dividends

When property is held by a company (an SRL, identified by an IDNO/CUI), the logic differs. The standard corporate income tax (CIT) in Moldova is 12%, and it applies to profit, not to turnover: recognized expenses are deducted from revenue first. When the owner wants to take the money out as dividends, the tax on dividends paid to an individual, 6%, is added.

The main advantage of an SRL is deductible expenses: depreciation, loan interest, repairs, management, and insurance reduce the tax base. The downsides are more administration (bookkeeping, reporting), possible VAT questions, and profit taxed twice, first at the company level and then on the dividend payout.

Keep VAT in mind separately: above a certain turnover, registering as a VAT payer becomes mandatory, and this changes the entire economics of the lease. Confirm the threshold, the rate, and whether it applies to your case with the SFS or an accountant, since too much depends on the specifics for a general answer here.

Comparison: individual vs. SRL

All figures are current reference points, but your actual burden depends on expenses, structure, and VAT status. Before deciding, run both scenarios with an accountant.

Which option is better for you specifically

There is no single answer. The advantage depends on three things: the volume of rentals, the share of expenses, and whether you take the money out for yourself right away or reinvest it.

1. One property, almost no expenses, money needed right away. Being an individual is usually better: 7% of the amount and no accounting.
2. A mortgage/loan, major repairs, a property manager. Expenses eat into the profit, and the deduction within an SRL may outweigh even the double taxation.
3. Several properties or plans to scale. An SRL provides structure (separate accounting, a legal entity as owner), but it requires discipline in bookkeeping.

A hypothetical example (not market data): a unit worth 200,000 €, rent of 14,400 €/year. As an individual at a 7% rate, the tax is ≈ 1,008 €/year regardless of expenses. In an SRL, with the same 14,400 € and, say, 6,000 € of deductible expenses, profit = 8,400 €, the 12% tax is ≈ 1,008 €, and taking the remainder out as dividends adds another 6%. The figures are illustrative and show the logic only; for your property, everything is recalculated from scratch.

The euro amounts here are illustrative; for reporting and comparison, convert at the National Bank of Moldova (BNM) rate, roughly ≈ 19.4 for EUR/MDL.

How KX Estate helps you choose and keep the books

To compare the two regimes honestly, you need precise figures for each property: actual rent, expenses, overdue payments, and yield. KX Estate manages contracts (held by an individual or by a legal entity with an IDNO/CUI), generates an automatic payment schedule, reconciles with the bank, and calculates the net yield of each unit in EUR/MDL/USD/RON at the BNM rate. With this data, a conversation with your accountant about “SRL or individual” takes minutes instead of an evening with a calculator.

Bottom line: being an individual means simplicity and a fixed 7% of the amount; an SRL means deductible expenses in exchange for 12% + 6% and accounting. Run both scenarios on your own numbers and confirm the regime with the SFS.

Frequently asked questions

What is cheaper for tax, leasing as an individual or through an SRL? It depends on expenses. With low expenses, being an individual is usually cheaper (a final ~7% of the amount). If expenses are high, the deduction within an SRL may outweigh that, despite the 12% + 6%. Run both options on your own numbers.

Do you need to register an LLC (SRL) to lease property? No. An individual can lease without registering a company, paying income tax. An SRL makes sense when expenses are substantial, you have several properties, or you need separate legal accounting.

Does the landlord pay VAT? Individuals usually are not concerned with VAT. For an SRL, once a turnover threshold is reached, registering as a VAT payer may become mandatory. Confirm the threshold and applicability with the SFS.

Is rental income taxed in Moldova? Yes. An individual’s income from leasing property carries a final income tax (the rate commonly applied is 7%); contracts are registered. Confirm the current rate and your specific obligations with the SFS or an accountant.