diff --git a/.dockerignore b/.dockerignore
index c36a60b5..3e33847d 100644
--- a/.dockerignore
+++ b/.dockerignore
@@ -14,9 +14,7 @@ CONTRIBUTORS
 docker-compose.*
 Dockerfile
 docs
-LICENSE
 Makefile
 MANIFEST.in
-README.md
 SECURITY.md
 tox.ini
diff --git a/.gitignore b/.gitignore
index 1ec6964a..ef4cc771 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,5 +1,6 @@
 *.pyc
 *.egg-info
+*.mo
 dist
 .venv
 docs/_build/
diff --git a/MANIFEST.in b/MANIFEST.in
deleted file mode 100644
index d3907241..00000000
--- a/MANIFEST.in
+++ /dev/null
@@ -1,3 +0,0 @@
-include *.md
-recursive-include ihatemoney *.py *.yaml *.po *.mo *.html *.css *.js *.eot *.svg *.woff *.txt *.png *.webp *.ini *.cfg *.j2 *.jpg *.gif *.ico *.xml
-include LICENSE CONTRIBUTORS
diff --git a/Makefile b/Makefile
index 47bbdc02..bf917b60 100644
--- a/Makefile
+++ b/Makefile
@@ -36,7 +36,7 @@ remove-install-stamp:
 update: remove-install-stamp install ## Update the dependencies
 
 .PHONY: serve
-serve: install ## Run the ihatemoney server
+serve: install build-translations ## Run the ihatemoney server
 	@echo 'Running ihatemoney on http://localhost:5000'
 	FLASK_DEBUG=1 FLASK_APP=ihatemoney.wsgi $(VENV)/bin/flask run --host=0.0.0.0
 
@@ -74,8 +74,8 @@ compress-assets: compress-showcase ## Compress static assets
 build-translations: ## Build the translations
 	$(VENV)/bin/pybabel compile -d ihatemoney/translations
 
-.PHONY: update-translations
-update-translations: ## Extract new translations from source code
+.PHONY: extract-translations
+extract-translations: ## Extract new translations from source code
 	$(VENV)/bin/pybabel extract --add-comments "I18N:" --strip-comments --omit-header --no-location --mapping-file ihatemoney/babel.cfg -o ihatemoney/messages.pot ihatemoney
 	$(VENV)/bin/pybabel update -i ihatemoney/messages.pot -d ihatemoney/translations/
 
diff --git a/docs/contributing.md b/docs/contributing.md
index a86f7321..78d5a806 100644
--- a/docs/contributing.md
+++ b/docs/contributing.md
@@ -274,10 +274,9 @@ In order to issue a new release, follow the following steps:
 
         make compress-assets
 
--   Build the translations:
+-   Extract the translations:
 
-        make update-translations
-        make build-translations
+        make extract-translations
 
 -   If you're not completely sure of yourself at this point, you can
     optionally: create a new branch, push it, open a pull request, check
diff --git a/hatch_build.py b/hatch_build.py
new file mode 100644
index 00000000..d536daed
--- /dev/null
+++ b/hatch_build.py
@@ -0,0 +1,11 @@
+import sys
+
+from hatchling.builders.hooks.plugin.interface import BuildHookInterface
+
+
+class CustomBuildHook(BuildHookInterface):
+    def initialize(self, version, build_data):
+        sys.path.insert(0, "./ihatemoney")
+        from babel_utils import compile_catalogs
+
+        compile_catalogs()
diff --git a/ihatemoney/babel_utils.py b/ihatemoney/babel_utils.py
new file mode 100644
index 00000000..a498bce3
--- /dev/null
+++ b/ihatemoney/babel_utils.py
@@ -0,0 +1,11 @@
+from pathlib import Path
+
+from babel.messages.frontend import compile_catalog
+
+
+def compile_catalogs():
+    cmd = compile_catalog()
+    cmd.directory = Path(__file__).parent / "translations"
+    cmd.statistics = True
+    cmd.finalize_options()
+    cmd.run()
diff --git a/ihatemoney/tests/conftest.py b/ihatemoney/tests/conftest.py
index 08d6e891..35f99e27 100644
--- a/ihatemoney/tests/conftest.py
+++ b/ihatemoney/tests/conftest.py
@@ -3,10 +3,16 @@ from unittest.mock import MagicMock
 from flask import Flask
 import pytest
 
+from ihatemoney.babel_utils import compile_catalogs
 from ihatemoney.currency_convertor import CurrencyConverter
 from ihatemoney.run import create_app, db
 
 
+@pytest.fixture(autouse=True, scope="session")
+def babel_catalogs():
+    compile_catalogs()
+
+
 @pytest.fixture
 def app(request: pytest.FixtureRequest):
     """Create the Flask app with database"""
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diff --git a/ihatemoney/translations/vi/LC_MESSAGES/messages.mo b/ihatemoney/translations/vi/LC_MESSAGES/messages.mo
deleted file mode 100644
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diff --git a/ihatemoney/translations/zh_Hans/LC_MESSAGES/messages.mo b/ihatemoney/translations/zh_Hans/LC_MESSAGES/messages.mo
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diff --git a/pyproject.toml b/pyproject.toml
index d14e8288..bf2de70b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [build-system]
-requires = ["setuptools", "setuptools-scm"]
-build-backend = "setuptools.build_meta"
+requires = ["hatchling"]
+build-backend = "hatchling.build"
 
 [project]
 name = "ihatemoney"
@@ -85,5 +85,19 @@ doc = [
 [project.scripts]
 ihatemoney = "ihatemoney.manage:cli"
 
-[tool.setuptools]
-packages = ["ihatemoney"]
+[tool.hatch.build.hooks.custom]
+dependencies = [
+    # Babel is needed to compile translations catalogs at package build time
+    "Babel>=2.13.1"
+]
+
+[tool.hatch.build]
+artifacts = ["ihatemoney/translations/**/*.mo"]
+include = [
+    "ihatemoney/",
+    "LICENSE",
+    "CONTRIBUTORS",
+    "CHANGELOG.md",
+    "README.md",
+    "SECURITY.md",
+]
diff --git a/tox.ini b/tox.ini
index 695d550c..fe2c9ad9 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,4 +1,5 @@
 [tox]
+isolated_build = true
 envlist = py312,py311,py310,py39,py38,py37,lint_docs
 skip_missing_interpreters = True