Iran

Last update: 2026-05-12
IR IRR Persian (farsi)
Pros
Extremely low energy and utility costs through significant government subsidies for industrial operations
Access to a large, highly educated, and tech-savvy youth population at competitive labor rates
Strategic geographic position serving as a transit hub between Europe, Asia, and the Middle East
Cons
Pervasive state control and dominance of semi-governmental entities stifling private sector competition
Severe international sanctions and isolation from global banking systems hindering cross-border capital movement
Systemic corruption and lack of transparent legal protections for private property and individual liberties
Personal income
NONE
Corporate
NONE
Capital gains
NONE
VAT (standard)
NONE
i 2 CRYPTO HAVEN
i 2 PRIVACY GRADE
i 1.5 VERY LOW TAX
i 0.9 EASY CITIZENSHIP
i 0 HOLDING
i 0 DIVIDEND PIPELINE
VERYLOW TAX 1.5/10 HOLDING 0/10 DIVIDENDPIPELINE 0/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 2/10 EASYCITIZENSHIP 0.9/10
01/08

Will Iran tax what you earn?

income tax tax residency territorial system

NO. Iran doesn't tax personal income, and doesn't reach for you when you settle. No withholding, no return, no centre-of-vital-interests test waiting to trip. Salary is a non-event here, both in the rate and in the paperwork.

Personal income taxi
NONE
no personal income tax framework
Income simulatori
N/A
no income tax framework — nothing to simulate
Tax residence testi
N/A
no formal tax residency test · matters mainly for citizenship / immigration tracks
02/08

Will Iran tax what you own?

capital gains wealth tax inheritance dividends interest

NO. Iran doesn't tax what you hold. No capital gains, no annual wealth assessment, no inheritance regime. The value sitting in your portfolio compounds untouched, and leaves it the same way it arrived.

Capital gainsi
NONE
no capital gains regime
Dividend taxi
NONE
no dividend tax
Interest incomei
NONE
no interest income tax
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
Regime
Rate
40%
Taxed under the 2025 Speculation and Profiteering Taxation Act. Short-term gains (held <1yr) are taxed at 40%, dropping to 10-15% after 1 year and potential exemptions after 2 years. The law uniquely taxes a portion of inflation-driven gains. Mining is regulated as industrial activity. Domestic payments are banned.
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
NONE
no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
03/08

Is it easy to run a company in Iran?

corporate tax criminal liability public registry VAT IP box

YES. Iran has no corporate income tax but stacks the two harshest non-fiscal frictions: criminal liability for misuse of corporate assets (jail risk on intra-company spending) and public registries (your name visible to anyone with a browser). Zero-tax headline; non-zero exposure on every other axis.

Corporate taxi
NONE
no corporate income tax framework
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
CRIMINAL LIABILITY
Article 258, Clause 3 of the Bill of Amendment to the Commercial Code (1347/1969)
Iran strictly adheres to the 'Autonomy of the Legal Entity' principle (Article 583 of the Commercial Code). Under Article 258(3) of the 1969 Amendment, directors who use company assets or credit for personal purposes against the company's interests face criminal penalties of 1 to 3 years' imprisonment. Because the company is a distinct legal person, the sole shareholder's consent does not negate the crime, and the act is treated as a criminal breach of trust regardless of the company's solvency.
Shareholders privacyi
PUBLIC
Official Gazette of the Islamic Republic of Iran
Directors privacyi
PUBLIC
Official Gazette of the Islamic Republic of Iran
Incorporation costi
Limited Liability Company (LLC)
Sherkat ba Masooliyat Mahdood
Government Registration, Name Booking, and Gazette Publication Fees USD 2
Professional Legal Fees for Incorporation and FIPPA Consultancy USD 2,700
Foreigner National Code (Fida Code) Acquisition and Document Translation USD 300
Total USD 3,002
VAT standard ratei
NONE
no general VAT · no consumption tax framework
04/08

Is Iran good for your holding company?

treaty network participation exemption withholding

NO. Iran doesn't carry a treaty network, which makes it unsuitable as a holding jurisdiction. Any dividend flowing in or out faces full statutory withholding, and no domestic participation exemption can compensate for missing relief on the source side.

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
no withholding on outbound dividends
WHT · interest
no withholding on outbound interest
WHT · royalties
no withholding on outbound royalties
Tax-haven WHT
no punitive rate on record
Treaties signedi
0
active
Treaties pending
in negotiation
Tax treaty networki
origin · IR 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with IR.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Iran?

exit tax territorial system dual citizenship

SOME. Iran 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
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Iran protect your privacy?

info exchange corporate registries

YES. Iran has signed few exchange frameworks, so foreign tax authorities won't routinely see what you do here. But corporate registries are public: ownership and directorships are queryable by anyone with a browser. Privacy from abroad, transparency at home.

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

Is Iran itself a liability?

blacklists FATF standing

SOMEWHAT. Iran is flagged by one or two national tax authorities and sits outside FATF membership. Selective friction: anti-abuse rules trigger on transactions in specific corridors, and counterparties tend to ask more questions.

Blacklist exposure Listed by 2 authorities
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 Iran?

press freedom crypto CBDC EU

NO. Press freedom in Iran is restricted (RSF rank #176). 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
176/180
score 16 · · 0 rank year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
Digital Rial
The main motivation for Iran's CBDC is to modernize its financial system and provide a secure and efficient means of payment. The development of a digital rial would also give the Central Bank of Iran more control over the country's monetary policy and can help to circumvent international sanctions. Additionally, the pilot launch of the CBDC could help to test the feasibility of such a currency and assess its potential impact on the economy before a full-scale implementation.
Central Bank of Iran
PILOT
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Iran. 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.