Very affordable costs with a Cost of Living Index of 21.75 (NYC = 100). Groceries (20.79) and restaurants (14.89) are particularly inexpensive, and the Rent Index is very low at 6.64.

The housing market is very expensive, with a Property Price to Income Ratio of 16.12 years. While the Rent Index is low at 6.64, foreign acquisition of immovable property is conditional and requires authorization.

Purchasing power is low, with an index of 34.84 compared to the NYC baseline, indicating limited buying power. National income per person has significantly fallen, and the average monthly salary is approximately €269.

Iran operates a progressive income tax system for individuals, with rates generally ranging from 15% to 35%. Corporate tax is a flat 25%. The standard Value Added Tax (VAT) rate is 10% as of March 2024. Property transfer tax is 5%, and rental income is taxed after a 25% deduction. The system is complex, with recent reforms aiming for transparency, but concerns exist regarding the burden on lower-income populations.

Iran's business environment is challenging due to a complex, multi-layered, and often ambiguous regulatory landscape, coupled with significant bureaucracy. International sanctions severely restrict access to foreign investment and global markets. Despite these hurdles, Iran has a growing startup ecosystem, with Tehran ranking #368 globally in 2025, and the Foreign Investment Promotion and Protection Act (FIPPA) offers some incentives for foreign investors.

Iran provides universal healthcare coverage, with approximately 90-95% of the population having health insurance. However, the pension system faces severe challenges, with 15 out of 17 pension funds reported as insolvent and dependent on government bailouts. Unemployment benefits exist for citizens but are generally not available to foreign nationals, and the system is currently strained due to high unemployment.

While a 'Deposit Guarantee Fund' is mentioned in the context of bank resolutions, a specific, quantifiable coverage limit for depositors in local currency or USD is not publicly available. Iran is on the FATF 'High-Risk Jurisdictions subject to a Call for Action' list (blacklist) as of October 2025 and February 2026, indicating significant deficiencies in anti-money laundering and counter-terrorist financing frameworks. The banking system is highly unstable, impacted by severe international sanctions, and has faced issues like embezzlement and cyberattacks.