Foreign Investment in Iran

Iran qualifies from many respects to be a good location for investment and doing business. It is a country that boasts a domestic market of 70 million people, 11% of the world’s proven oil reserves, 15% of the world’s proven gas reserves, 11 petrochemical complexes, 3 major steel plants and much more.

Some of the features are highlighted below:

    1. Strategic Location: A unique geographical location at the heart of a cross-road connecting the Middle East, Asia and Europe, empowered by many inter- and trans-regional trade, customs, tax and investment arrangements.
    2. Market Potentials and Proximity: Vast domestic market with a population of 65 million growing steadily as well as quick access to neighboring markets with approximately 300 million inhabitants.
    3. Labor Privileges: Large pool of trained and efficient manpower at very competitive costs in a diversified economy with an extensive industrial base and service sector.
    4. Developed Infrastructure: Territory developed networking in the area of telecommunication, roads and railways across the country.
    5. Low Utility and Production Cost: Diversified range of energy, telecommunication, transportation, as well as public utilities.
    6. Abundant Natural Resources: Varied and plentiful reserves of natural resources ranging from oil and gas to metallic and non-metallic species reflecting the country’s accessibility to readily available raw materials.
    7. Climatic Characteristics: A four-season climatic endowment as a privilege to agricultural activities throughout the country and throughout all seasons.
    8. Fiscal Incentives: Reduced tax rates from 65% to a flat fixed 25% rate of tax income despite various tax holidays highlighted as follows:
Activity Level of Excemption Duration of Excemption
Agriculture 100% No Time Limit
Industry and Mining 80% 4 Years
Industry and Mining in Less Developed Areas 100% 10 Years
Tourism 50% No Time Limit
Exports 100% No Time Limit
  1. Legislation: Enactment of new Foreign Investment Promotion and Protection Act (FIPPA) to substitute the former Law Concerning Attraction and Protection of Foreign Investments in Iran (LAPFI) providing full security and legal protection to foreign investments based on transparency and international standards.

The government of I.R. Iran welcomes foreign investments and urges all the foreign investors to attentively peruse Iran’s Foreign Investment Promotion and Protection Act (FIPPA) and its executive bylaws to know their own rights and be informed of the facilities and protections they may enjoy as well as the legal obligations and requirements caused by investing in Iran.

We have an extensive experience on getting the FIPPA license for our foreign clients who intend to invest in Iran and enjoy the FIPPA facilities. We will assist our clients by preparing the relevant documents, filling the application forms and submitting them to the OIETAI, getting the FIB approval and assisting them with the registration of the companies.
To read Iran’s Foreign Investment Promotion and Protection Act (FIPPA) please click here.