Foreign investors may transfer abroad foreign currency received from their investment, including:

• Profits, dividends, interest, and other current income
• Royalties
• Amounts received from litigation
• Compensation of damage
• Amounts received upon liquidation of companies or sale or expropriation of investment or objects of investment.

Foreign citizens may transfer abroad their wages and other employment income in foreign currency.

Investment guarantees

Expropriation

Foreign investment in Moldova enjoys full protection and guarantee and may not be expropriated or nationalized or be subjected to other restrictive measures, except in accordance with the law and for just compensation.

This compensation shall correspond to the value of the investment immediately prior to the time of public announcement of expropriation or nationalization, be calculated within three months of the application of the relevant action and include ordinary bank interest to the date of payment.

The compensation shall be paid in the currency of investment and can be freely transferred abroad.

An investor may challenge in court the legality of the expropriation and the amount of compensation to be paid.

Moldova’s bilateral investment treaties may provide additional protection from expropriation.

Resolution of disputes

Forum

Disputes between foreign investors and the authorities regarding the application of Moldovan laws, disputes between the founders of companies wholly or partly owned by foreign investors and disputes between such companies and other individuals and legal entities and the authorities in civil and commercial matters shall be settled in Moldovan courts. The parties may, however, agree to submit a dispute, before or after legal proceedings have been initiated, to arbitration in Moldova or abroad.

Moldova’s bilateral investment treaties may provide for additional forms for resolution of investment disputes.

Moldova has also signed the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States, but has not yet ratified it.

Labor disputes between companies wholly or partly owned by foreign investors and their employees shall be settled in accordance with Moldovan law. Individual employment contracts, for foreign staff may provide alternative mechanisms for dispute resolution.

Disputes between foreign parties and Moldovan parties in commercial matters shall be settled in Moldovan courts, unless otherwise provided by the international contract.

Moldova is a party to the 1958 New York Convention on Recognition and Enforcement of Foreign Arbitral Awards. However, in the absence of a treaty signed with the relevant country, Moldova does not recognize and enforce foreign judgments in civil and commercial matters.

Moldova is also a WTO member and, accordingly, is subject to WTO procedures for dispute resolution.

Individuals and companies may appeal to the European Court of Human Rights (whose decisions are enforceable in Moldova) if they believe their rights have been violated or that national laws are not in accordance with the European Convention on Human Rights.

Choice of law

Moldovan law allows the parties to choose the governing law only in respect of their rights and obligations arising from an “external trade transaction.” Foreign law, however, will not apply if it contravenes Moldovan public policy.

Moldova’s treaties with other countries generally have priority over its civil and commercial legislation.

Investment treaties

Moldova has signed bilateral investment protection treaties with the following countries:

*All the above treaties are effective, except for the treaty with Spain.

http://www.kpmg.md/moldova/others/investment_in_moldova_html/Protection%20of%20foreign%20investment.htm