Costs are very affordable (CPI: 28.3). Groceries (28.2) and restaurants (26.3) are significantly cheaper than in NYC.

Property prices average 10.3 years of household income, indicating a moderate market. The rental market (Rent Index: 6.6) is very affordable.

A purchasing power index of 63.4 suggests below-average buying power compared to NYC.

Iraq has progressive income tax rates from 3% to 15%. Corporate income tax is generally 15%, but 35% for foreign oil and gas companies. Property tax is 10% of annual revenue, with exemptions for qualified investments. The tax system is complex and faces challenges with clarity and collection.

Iraq's business environment is challenging, with opaque regulations, corruption, and bureaucratic hurdles. The World Bank's 2024 Business Ready report ranks Iraq low for institutional support. Foreign ownership is generally capped at 49% in federal Iraq, though the Kurdistan Region allows 100%. The startup ecosystem is growing but faces investment scarcity.

Iraq is implementing a new Social Security Law (No. 18 of 2023) to expand coverage for health, work injuries, retirement, maternity, paternity, and unemployment benefits. Employee contributions are 5%, while employer contributions range from 12% to 25%. The pension system faces issues with financial sustainability and inequity, and bureaucracy can cause delays.

Iraq does not have a formal statutory deposit insurance scheme with a specified coverage limit. Deposits in state-owned banks are implicitly perceived as government guaranteed. The financial sector is underdeveloped and primarily cash-based, with weak supervision and regulation. Iraq has an AML/CFT framework and was removed from the FATF grey list in 2018, with ongoing efforts to meet international standards.