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Investment incentives

After the lifting of sanctions the Iran aimed for economic growth as soon as possible. Hence, the Iran initiated free economic zones and investment programmes to attract foreign investors and companies.

FIPPA

Foreign investment doctorate and Protection Act (FIPPA) covers a number of political-economic measures for the attractiveness increase the economic location of Iran. Beside the extension and right of ownership for foreign investors, tax reliefs are a component of this decree.

Free Zones

Free economic zones are areas with particularly free market regulations. There were created by the Iranian government to advance the structural development in these Areas.

Foreign Investment Promotion and Protection Act (FIPPA)

Protection & guarantees

  • Foreign investments are protected against nationalization and expropriation. Should such a case enter, the investor must be compensated accordingly.
  • Should laws be enacted afterward which limit investments according to framework of the FIPPA, the state has to make compensation payments.
  • The access to Raw and operating supplies, as well as industrial services necessary for production is guaranteed for subsidized prices, provided that the state is the only supplier.

Rights & possibilities

  • For foreign investors the equal treatment principle to be in force which says that a foreign investor must be equated in his rights to local investors.
  • Should laws enacted afterward which limit investments within the frame work of the FIPPA, the state has to make compensation payments.
  • Option between direct investment or portfolio investment in all sectors under external conditions of the private participation, repurchase option and Build Operate transfer.

Tax reliefs

  • 80% of the income by production and mineral production have tax-exemption in below developed zones for 4 years.
  • 100% of the income by production and mineral-based goods have tax-exemption in below developed zones for 4 years.
  • 50% of tax exemption income from the tourism.
  • 100% of tax exemption income from the export of industrial and agrarian-economic products.
  • 100% of tax exemption for exporting of transit cargoes.

Here you can download the official document about the Foreign Investment Promotion and Protection Act as PDF.

Trade-Industrial Free Zones

Investment incentives in trade industrial free zones

  • Holding 100% of the company shares is permitted
  • Free disposal of profits and invested capital
  • 20-year tax exemption
  • Free Visa
  • Free from customs dues

Trade-Industrial Free Zones

  • Qeshm
  • Chabahar
  • Aras
  • Anzali
  • Arvand
  • Kish
  • Maku