# Iraq

 Country code: IQ · Currency: IQD · Language: Arabic

**Pros**
- Low personal and corporate income tax rates offering significant fiscal advantages for capital accumulation.
- Vast untapped natural resources and emerging market potential for high-yield, risk-tolerant private investment.
- Minimal state regulatory enforcement in specific sectors allowing for rapid, decentralized business growth.

**Cons**
- Systemic corruption and pervasive bureaucratic hurdles complicating transparent and efficient market entry.
- Chronic security instability and political volatility threatening the long-term protection of private property.
- Severely underdeveloped infrastructure and unreliable power grids necessitating expensive private utility solutions.

Long story short: Nobody here will come digging through your books: Iraq's tax authority has neither the means nor the appetite to hunt you down, and you can bypass red tape with a few bills slipped the right way.

The flip side: corruption eats everything, from building permits to the smallest stamp, and the banking system stays cash only, archaic, with international transfers a nightmare.

Beyond that: in Karrada or Mansour, security holds up far better than the country's reputation, power cuts happen daily, the food (mezgouf, kebab) is excellent, and the oil potential remains massive.

## Will your income be taxed?

Long story short: YES, BUT LIGHTLY.
**Iraq** keeps income tax low (**15%** at the top), but its definition of tax residence has *long arms*: hang around too long, park your economic life here, and the net closes.

The bill stays small; the leash is real.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 3 → 15% | progressive · 4 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 190 | 3% |
| 190 – 381 | 5% |
| 381 – 762 | 10% |
| 762 + | 15% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | does not exist here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | exists here |  |

## Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Capital gains in **Iraq** get a light **15%** haircut, with no annual wealth levy.

But *inheritance* takes its own bite when assets pass down. Cheap to hold, pricier to hand over.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 15% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 190 | 3% |
| 190 – 381 | 5% |
| 381 – 762 | 10% |
| 762 + | 15% |

| Metric | Value | Detail |
| --- | --- | --- |
| Dividend tax | 15% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 190 | 3% |
| 190 – 381 | 5% |
| 381 – 762 | 10% |
| 762 + | 15% |

| Metric | Value | Detail |
| --- | --- | --- |
| Interest income | 15% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 190 | 3% |
| 190 – 381 | 5% |
| 381 – 762 | 10% |
| 762 + | 15% |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | APPLIES | estate-based · single threshold · Headline rate — · Allowance IQD 20,000,000 · spouses are typically exempt; flat rate applies above the allowance, regardless of heir class. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 15% · The Central Bank of Iraq (CBI) has officially prohibited the use of cryptocurrencies in the financial system since 2017, a stance reaffirmed by Circular No. 125/5/9 in 2021. While no specific law criminalizes private individual possession, there is no dedicated crypto tax framework. Any realized gains are theoretically subject to general Income Tax Law No. 113 of 1982, which applies a progressive rate up to 15% on all income sources. Trading is considered high-risk and potentially subject to Anti-Money Laundering (AML) penalties. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES.
Corporate tax in **Iraq** sits at a *low* **15%**, VAT included in the good mood. Setting up and running a company is cheap; whatever ends up killing your venture here, it won't be the tax bill.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 15% | flat · +20% oil and gas industry (35% total rate) |
| VAT standard rate | NONE | no general VAT · no consumption tax framework |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal liability · Article 216 of the Companies Law No. 21 of 1997 · Iraqi law strictly adheres to the principle of the 'Autonomy of the Legal Entity' (Article 22), which establishes the company as a separate legal person from its owners. Under Article 216 of the Companies Law, any company official (including a sole director/shareholder) who intentionally uses company funds or property for personal benefit or for the benefit of another person is subject to criminal penalties, including imprisonment for up to one year and a fine. Because the company's assets are legally distinct from the individual's personal patrimony, the act of using corporate funds for personal expenses is classified as a criminal offense (misdemeanor) regardless of the company's solvency or the shareholder's consent. |
| Shareholders privacy | PRIVATE | Companies Registration Department (Ministry of Trade) |
| Directors privacy | PRIVATE | Companies Registration Department (Ministry of Trade) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Sharikat That Mas'ooliyyah Mahdoodah (Limited Liability Company (LLC)). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration and Name Reservation Fees | USD 190 |  |
| Chamber of Commerce Membership and Affiliation | USD 267 |  |
| Professional Legal Incorporation Services (Foreigner Package) | USD 3,429 |  |
| Official Publication and Stamp Duties | USD 38 |  |
| Total | USD 3,924 |  |

## A good fit for a holding?

Long story short: NOT REALLY.
**Iraq** is a structurally weak holding base: a measly **12** treaties and no participation exemption to soften the domestic layer.

Cross-border dividends get clipped at every step of the journey. Keep walking.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 0% | non-resident outbound |
| WHT · interest | 15% | non-resident outbound |
| WHT · royalties | 15% | non-resident outbound |
| Tax-haven WHT | 0% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 2 | active |
| Treaties pending | 10 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Iraq** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | ALLOWED | naturalised citizens may keep their existing nationality |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 10 years | available path to naturalisation |
| Marriage | — | not available |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: NO.
Nobody's reading over your shoulder in **Iraq**. It has joined *almost none* of the big automatic-exchange machines (CRS, FATCA, CARF, MLI, MAAC), and its corporate registries are *non-public*.

Your account movements stay out of foreign tax offices; your name stays out of search boxes. Here, discretion isn't a perk; it's the factory setting.

**Multilateral reporting frameworks — 0/9 active**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | None | — |
| MLI | None | — |
| BEPS | None | — |
| MAAC | None | — |
| GLOBAL FORUM | None | — |
| EOIR | None | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: YES.
**Iraq** sits on an **international embargo list** (UN, US or EU sanctions). This is not blacklist friction, it's the financial death penalty: correspondent banking is gone, payment rails refuse the corridor, and simply transacting with the country can put *you* on a sanctions desk's radar.

Whatever the tax math says, the jurisdiction is radioactive. Walk away.

**Blacklist exposure — Listed by 1 authority**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Listed | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **Iraq** is *locked down* (RSF rank **\#155**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 155/180 | score 30 · ↑ 14 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Iraq CBDC

The Central Bank of Iraq aims to introduce a digital currency as a strategic shift to modernize the national payments system, enhance financial transparency, and reduce reliance on physical cash. The goals include lowering currency production costs, curbing money laundering, improving oversight of financial flows, and promoting financial inclusion—especially for underserved populations—while fostering a more efficient and secure economic environment.

Central Bank of Iraq

   RESEARCH   —   [announce →](https://ina.iq/eng/38598-government-advisor-cbi-issuance-of-digital-currency-represents-a-qualitative-leap-in-nps.html "Announcement")

 programs 1

## Connected to the world?

Long story short: COMPLETELY CUT OFF.
**Iraq** is unplugged from the global money grid: **2/11** of the services we track work here. No *Stripe*, no *Amazon*, and almost nothing around them either.

Whatever your plan is, the payment layer gets built from scratch, with local banks and local rules. Come for other reasons; connectivity isn't one of them.

**Accept payments — 1/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Not available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Not available | merchant of record |

**Bank and move money — 0/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Not available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

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