Tax on property income in Iran
June 15, 2017
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 19.25% | 23.30% | 24.78% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
Nonresident individuals are liable to pay tax only on their Iranian-sourced income.
INCOME TAX
There are five categories of income earned by individuals: (1) salaries, (2) income from professions, trades, and miscellaneous sources, (3) incidental or windfall earnings, (4) real estate income, and (5) income derived from agriculture. Each category is taxed separately and has its own computational rules.
Real Estate Income
Rental income is subject to real estate income tax in Iran. A fixed deduction of 25% of the gross income is extended to all taxpayers to account for income-generating expenses. The net income, which is 75% of the gross rent, is then subject to the following rates:
INCOME TAX |
|
| TAXABLE INCOME IRR (US$) | |
| 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.
Comments
Mimi Farsani | September 04, 2011
Good Morning,
I inherited land when I father passed away back in 1981 and my land was taken over and at times sold illegally. I have a lawyer that is following up with my case in IRAN to reclaim my land.
When I receive all titles of my land what percentage of taxes do I owe the government if I want to sell my land.
Thank you in advance for your time.
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