Free & Special Economic Zones
Iran operates 8 Free Trade-Industrial Zones and 30+ Special Economic Zones. Together they offer 20-year corporate tax holidays, full foreign ownership, and zero import duty on production inputs — within Iranian sovereign territory.
Tax Benefits
Import/export tax exemptions and corporate tax holidays for operations in free zones.
Strategic Locations
Gateway to Central Asia, Middle East, and international markets via sea and land routes.
Growth Opportunities
Developing business ecosystems with supporting infrastructure and services.
Choose by geography & sector
Kish Free Zone
Persian Gulf
Key Benefits
- •100% tax exemption on import/export
- •No customs duties on imports
- •Simplified business licensing
Industries
Qeshm Free Zone
Persian Gulf
Key Benefits
- •Comprehensive business incentives
- •Tax holidays for new enterprises
- •Streamlined customs procedures
Industries
Chabahar Free Zone
Sistan & Baluchestan
Key Benefits
- •Largest free zone
- •Strategic port access
- •India-Central Asia corridor
Industries
Anzali Free Zone
Caspian Sea
Key Benefits
- •Caspian sea access
- •Customs advantages
- •Business development support
Industries
Astara Free Zone
Northern Iran
Key Benefits
- •Azerbaijan border access
- •Trade gateway
- •Customs benefits
Industries
Arasbaran Free Zone
Northwest Iran
Key Benefits
- •Turkey border access
- •Turkey-Iran-Europe corridor
- •Manufacturing incentives
Industries
Which regime fits your business?
Mainland Iran offers full market access but standard taxation. Free zones give you the strongest fiscal and customs incentives at the cost of geographic concentration. SEZs sit between the two, optimised for production with onward sale into the mainland.
| Topic | Mainland | Free Zone | Special Economic Zone |
|---|---|---|---|
| Corporate tax | Standard 25% | 0% for 20 years | 0% for 13 years |
| Customs duty (imports) | Applies | Exempt | Exempt for production inputs |
| Foreign ownership | 100% (with FIPPA) | 100% | 100% |
| Visa on arrival (investors) | 30 days | 14 days, renewable | 14 days, renewable |
| Capital repatriation | CBI approval | Free | Free |
| Labour regulation | Iran Labour Code | Free-zone specific | Iran Labour Code (modified) |
Land area by free zone
Chabahar is roughly 90× the size of Kish — a deliberate strategic bet on the India–Central Asia corridor. For most service and trading businesses, the smaller island and border zones offer better infrastructure density and faster set-up.
Heavy industry and port-logistics mandates almost always land in Chabahar, Qeshm, or Maku. Knowledge-economy plays cluster around Kish and Arvand.
The six-step setup process
Site selection
Match your sector, market access, and labour needs to the right zone. Site visit organised within 2 weeks.
Licence application
File with the zone authority. Standard turn-around 3–5 weeks for trading; 6–10 weeks for manufacturing.
Land & utility allocation
Lease land (typically 25–30 years renewable), connect power, water, telecoms, and customs gate.
Tax & customs registration
Register for VAT exemption, free-zone customs code, and labour file. We coordinate all four agencies in parallel.
Banking & FX
Open IRR + FX accounts at zone-approved banks. Set up payment corridors via Tehran or DIFC mirror account.
Go-live
First import or first production batch. We remain on standby for the first 90 days of operations.
Which Free Zone is Right for You?
Our consultants can assess your business needs and recommend the optimal free zone location.
Free Zone ConsultationIran's 8 Free Zones and 23 Special Economic Zones at a glance
Free Trade-Industrial Zones (FTZs) offer a 20-year corporate tax holiday, 100% foreign ownership, no visa for entry, and customs exemption on imports. Special Economic Zones (SEZs) offer customs benefits but not the tax holiday — choose based on whether your model is industrial, trade, or services.
Tax holiday
20-year exemption from income and corporate tax inside FTZs, codified by the Free Zones Act of 1993 and most recently extended in 2024.
Customs
Imports into the zone are duty-free. Goods entering the mainland from a free zone are taxed only on the non-domestic value added — a major advantage for assembly operations.
Labour & visa
No visa required to enter most FTZs for up to 14 days. Foreign work permits are issued by the zone authority directly, avoiding mainland labour-ministry queues.
What's included
- Pre-feasibility — confirm activity is permitted in the chosen zone
- Reserve company name with the zone authority
- Submit business plan + shareholders' identity documents
- Lease or purchase plot / unit inside the zone
- Receive activity license (typical: 2–4 weeks)
- Open IRR + FCY bank accounts at zone-licensed bank
- Apply for work permits and visas for foreign staff
Frequently asked questions
Which free zone is best for manufacturing?+
Qeshm and Chabahar for export-oriented heavy industry (port access). Aras and Maku for re-export to CIS and Turkey. Kish for high-value-add and consumer assembly.
Do free zones really mean no tax for 20 years?+
Yes — income and corporate tax exemption for 20 years from operational start, established by the Free Zones Act and extended by the High Council in 2024. VAT does not apply inside the zone.
Can I sell into mainland Iran from a free zone?+
Yes, but goods crossing into the mainland are treated as imports for customs purposes, with duty calculated on the foreign-value-added portion. Many operators run a mirrored mainland LLC to handle domestic sales.
How long does free-zone registration take?+
2–4 weeks for the activity license; an additional 2–3 weeks for bank account, tax file, and work permits. Allow 6–8 weeks total before commercial operations begin.
Related knowledge & common questions
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