Tax on property income in Iran
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 19.25% | 23.30% | 24.78% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
Nonresident individuals are liable to pay tax only on their Iranian-sourced income.
INCOME TAX
There are five categories of income earned by individuals: (1) salaries, (2) income from professions, trades, and miscellaneous sources, (3) incidental or windfall earnings, (4) real estate income, and (5) income derived from agriculture. Each category is taxed separately and has its own computational rules.
Real Estate Income
Rental income is subject to real estate income tax in Iran. A fixed deduction of 25% of the gross income is extended to all taxpayers to account for income-generating expenses. The net income, which is 75% of the gross rent, is then subject to the following rates:
INCOME TAX |
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| TAXABLE INCOME IRR (US$) | |
| Up to 30 million (US$923) | |
| 30 million - 100 million (US$3,077) | |
| 100 million - 250 million (US$7,692) | |
| 250 million - 1 billion (US$30,769) | |
| Over 1 billion (US$30,769) | |
| Source: Global Property Guide | |
Rental income is exempted from real estate tax if the property is a residential property leased as such and measures up to 150 sq. m. if it is located in PROPERTY TAX Property taxes have been abolished as of February 2002. Tehran (up to 200 sq. m. if it is located in other parts of the country).
Capital Gains
There is no capital gains tax in Iran but there is a transfer tax on sales of properties (see buying guide).
PROPERTY TAX
Property taxes have been abolished as of February 2002.