Global Property Guide

Financial Information for Residential Property Buyers


Rental income tax in Iran is moderate to high

Last Updated: June 15, 2017

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$)
TAX RATE
Up to 30 million (US$923)
15%
30 million - 100 million (US$3,077)
20%
100 million - 250 million (US$7,692)
25%
250 million - 1 billion (US$30,769)
30%
Over 1 billion (US$30,769)
35%
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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