Global Property Guide

Financial Information for Residential Property Buyers


Inheritance tax and law

Last Updated: June 15, 2017

INHERITANCE TAX

Inheritance taxes are levied at progressive rates depending on the relationship between the deceased and the heir.

  • Category I: (first degree heirs) parents, spouse, children, grandchildren
  • Category II: (second degree heirs) grandparents, siblings, nieces, nephews
  • Category III: (third degree heirs) uncles, aunts, children of uncles and aunts

The taxable inheritance is the gross estate. The whole estate of an Iranian is subject to inheritance tax, regardless of location. Non-Iranians are subject to inheritance tax only on property located in Iran.

A deduction allowance of IRR30 million (US$923) is extended to each first degree heir. First degree heirs who are below 20 years of age or are incapacitated are entitled to the maximum deduction allowance of IRR50 million (US$1,539).

INHERITANCE TAX

TAX BASE, IRR (US$)
I
II
III
Up to 50 million (US$1,539)
5%
15%
35%
50 million - 200 million (US$6,153)
15%
25%
45%
200 million - 500 million (US$15,385)
25%
35%
55%
Over 500 million (US$15,385)
35%
45%
65%
Source: Global Property Guide

Comments

mahin | July 13, 2010

Could you please tell me that inheritance tax should be paid in a lump sum when tax is calculated on all assets or can be paid individually when every property has been sold.

Many Thanks in advance if you reply to me soon.

Sara | August 12, 2010

My grandfathre dies years ago in Iran. What is the time frame in which one should file for his inheritance if no one has done it yet? In another words, how many yaers after his death the government may take over his belongings if no one has claimed them?
Thanks!

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