Iraq

Last update: 2026-06-07
IQ IQDع.د 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.
Personal income
3 → 15%
progressive
Corporate
15%
flat
Capital gains
3 → 15%
progressive
VAT (standard)
NONE
i 9.1 PRIVACY GRADE
i 6.8 VERY LOW TAX
i 3 HOLDING
i 2 CRYPTO HAVEN
i 2 EASY CITIZENSHIP
i 1.7 DIVIDEND PIPELINE
VERYLOW TAX 6.8/10 HOLDING 3/10 DIVIDENDPIPELINE 1.7/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 9.1/10 EASYCITIZENSHIP 2/10
01/08

Will Iraq tax what you earn?

income tax tax residency territorial system

YES, BUT LIGHTLY. Personal income is taxed modestly in Iraq, peaking at 15%. The fiscal weight exists but reads clearly, and residency follows the standard day-count and economic-interest pattern.

Personal income taxi
3 → 15%
progressive · 4 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
Tax residence testi
120/183 days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Iraq tax what you own?

capital gains wealth tax inheritance dividends interest

YES, BUT LIGHTLY. Capital gains are taxed at a low 15% in Iraq, but the country also applies an annual wealth tax (top rate 6%). Over a long holding period, the recurring charge can outweigh the realisation tax entirely.

Capital gainsi
15%
progressive
Dividend taxi
15%
progressive
Interest incomei
15%
progressive
Wealth taxi
0 → 6%
progressive · threshold 15,260
Crypto · tax regimei
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-cryptoi
TAXABLE
each swap counts as a disposal — gains realised at every trade
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
APPLIES
system · heir-based · 5 heir classes
HeirTop rateAllowance
Spouse 6% IQD 20,000,000
Children 6% IQD 20,000,000
Siblings 6% IQD 20,000,000
Other relatives 6% IQD 20,000,000
Non-relatives 6% IQD 20,000,000
03/08

Is it easy to run a company in Iraq?

corporate tax criminal liability public registry VAT IP box

YES. Corporate tax in Iraq sits at a low 15%, with VAT around it. Setting up and running a company is cheap; the rate won't be what kills a venture here.

Corporate taxi
15%
flat · +20% Foreign oil companies and subcontractors in the oil and gas production sector (total rate 35%)
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
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 privacyi
PRIVATE
Companies Registration Department (Ministry of Trade)
Directors privacyi
PRIVATE
Companies Registration Department (Ministry of Trade)
Incorporation costi
Limited Liability Company (LLC)
Sharikat That Mas'ooliyyah Mahdoodah
Government Registration and Name Reservation Fees USD 191
Chamber of Commerce Membership and Affiliation USD 267
Professional Legal Incorporation Services (Foreigner Package) USD 3,433
Official Publication and Stamp Duties USD 38
Total USD 3,929
VAT standard ratei
NONE
no general VAT · no consumption tax framework
10% 15% 20% 300%
Food & drink
300%
alcohol
Transport
15%
air
Hospitality
10%
hotels
10%
restaurants
Digital & telecom
20%
digital
20%
telecom
04/08

Is Iraq good for your holding company?

treaty network participation exemption withholding

NOT REALLY. Iraq is structurally weak as a holding base: only 12 treaties signed and no participation exemption to soften the domestic layer. Cross-border dividend flows will leak value at every step.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
NONE
no controlled foreign corporation regime · foreign-source corporate income out of scope
WHT · dividendsi
0%
non-resident outbound
WHT · interest
15%
non-resident outbound
WHT · royalties
15%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
2
active
Treaties pending
10
in negotiation
Tax treaty networki
origin · IQ 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with IQ.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Iraq?

exit tax territorial system dual citizenship

SOME. Iraq taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
naturalised citizens may keep their existing nationality
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Iraq protect your privacy?

info exchange corporate registries

YES. Iraq has joined almost none of the major automatic-exchange frameworks (CRS, FATCA, CARF, MLI, MAAC), and its corporate registries are non-public. Account flows stay out of foreign hands; ownership stays out of public ones. Discretion is built into the system.

Multilateral reporting frameworks 0/10 active
CRS
CARF
FATCA
MLI
BEPS
MAAC
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Iraq itself a liability?

blacklists FATF standing

NO. Iraq carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Iraq?

press freedom crypto CBDC EU

NO. Press freedom in Iraq is restricted (RSF rank #155). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.

Press freedom · RSF indexi
155/180
score 30 · ↑ 14 ranks year-on-year
Central bank digital currencyi
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
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Iraq. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.