Iran Investment
Glossary
44+ working definitions of the legal, regulatory, capital-markets, banking and free-zone terminology foreign investors encounter when operating in Iran. Bookmark-able and citation-ready.
- BOT Finance
- Common Iranian infrastructure concession model: investor builds, operates for a concession period (15–25 yrs), then transfers asset to the state.
- CBI Regulator
- Sets monetary policy, supervises the banking sector, and approves cross-border payment routes and FX conversions for foreign investors.
- CFT/AML Compliance
- Iran tightened its CFT/AML regime through 2023–25 reforms. Counterparty KYC remains a critical workstream for foreign investors.
- CSDI Capital Markets
- Operates the trading-code register, clearing, and settlement for TSE and IFB trades. Foreign investors apply here for an investor identification code.
- DTT Tax
- Iran has DTTs with 50+ jurisdictions (incl. Germany, France, Russia, China, Turkey, UAE, Korea) reducing WHT and clarifying permanent-establishment rules.
- ECA Finance
- State-backed financiers / insurers (e.g. Hermes, SACE, EXIM) that historically supported Iran-bound capital goods exports under specific carve-outs.
- EPC Finance
- Standard turnkey delivery contract used for energy, petrochem and infrastructure builds.
- EU Blocking Regulation Compliance
- EU statute prohibiting compliance with certain US extraterritorial sanctions. Often referenced in EU-Iran trade structuring.
- FIPPA Legal
- Iran's primary foreign-investment statute (2002). Grants licensed foreign capital equal treatment with domestic capital, full profit and capital repatriation, and protection against expropriation without compensation.
- FZ / FTZ Free Zones
- One of 8 designated zones (Kish, Qeshm, Chabahar, Aras, Anzali, Arvand, Maku, Tyas) offering 20-year tax holiday, 100% foreign ownership, and simplified customs.
- ICCIMA Trade
- Issues commercial cards required for import/export, and hosts the Iran International Arbitration Centre.
- IFB Capital Markets
- The over-the-counter exchange covering SMEs, debt instruments, ETFs, and pre-IPO listings. Operates alongside the TSE.
- IME Capital Markets
- Commodity exchange covering metals, petrochemicals, agricultural products, and futures. Major price-discovery venue for industrial buyers.
- IMIDRO Mining
- State holding company over copper, steel, iron ore, aluminium and rare-earth concessions; principal counterparty for large mining JVs.
- INSTEX Compliance
- EU special-purpose vehicle (in run-off) designed for humanitarian and food trade with Iran outside USD.
- INTA Tax
- Tax authority. Administers 25% corporate tax, VAT (currently 10%), and FZ tax exemptions.
- IPC Energy
- Post-2014 upstream contract model replacing the older buy-back structure. Cost-recovery + per-barrel fee linked to performance.
- IRENEX Capital Markets
- Specialised exchange for crude oil, refined products, electricity, and gas-related instruments.
- IRICA Trade
- Customs authority. Manages tariffs, free-zone customs treatment, temporary admission and ATA carnets.
- IRR Banking
- Official currency. Quoted on three reference rates: NIMA, ETS (interbank) and the parallel/free-market rate. Investors should plan around NIMA convertibility.
- KYC Compliance
- Counterparty identification, beneficial-ownership mapping, sanctions screening. We pre-screen every Iranian counterparty before introduction.
- LLC Corporate Form
- Partnership-style entity with two or more partners. Used for smaller ventures; conversion to PrJSC common before scaling.
- Mashin Hesab Reporting
- Local GAAP-aligned bookkeeping framework. Most large groups also keep IFRS-converted books for foreign reporting.
- NIMA Banking
- The Central Bank of Iran platform for non-oil export-proceeds FX transactions. Foreign investors routinely use NIMA for inbound capital settlement and dividend repatriation.
- NIOC Energy
- State-owned upstream oil & gas operator and the counterparty for most upstream service contracts.
- OFAC Compliance
- Administers US sanctions. Many foreign investors structure outside USD and avoid US-nexus touchpoints; see our Sanctions Briefing.
- OIETAI Regulator
- The Ministry of Economic Affairs & Finance body that reviews and licences FIPPA applications and acts as the foreign investor’s primary government counterparty.
- PJSC Corporate Form
- Iranian company form whose shares can be publicly offered. Required for TSE listing. Min. 5 shareholders, min. capital IRR 5M.
- PPA Energy
- Long-term electricity off-take contract. In Iran typically signed with SATBA (renewables) or Tavanir (conventional).
- PrJSC Corporate Form
- Closed equivalent of PJSC. Most common vehicle for FDI-controlled subsidiaries. Min. 3 shareholders, min. capital IRR 1M.
- PSEEZ Free Zones
- Asaluyeh-based SEZ hosting the bulk of Iran’s downstream petrochemicals and LNG-adjacent infrastructure.
- Repatriation Legal
- Under FIPPA, foreign investors may repatriate registered capital, profits and capital gains in the original currency, subject to FX availability through NIMA.
- SATBA Energy
- Ministry of Energy body that signs feed-in tariff PPAs with renewable-power developers. Standard PPA tenor 20 years.
- SEO Capital Markets
- Iran's capital-markets regulator. Licenses brokers, listed issuers, and foreign-investor trading codes for the Tehran Stock Exchange.
- SEZ Free Zones
- 30+ specialised industrial enclaves with customs benefits but less generous tax treatment than FTZs. Common for downstream petrochemicals (PSEEZ) and ports.
- SHAPARK Banking
- Subsidiary network handling card-present and card-not-present transactions; relevant for fintech and e-commerce investors.
- SHETAB Banking
- Domestic real-time interbank settlement system connecting all Iranian banks; backbone for IRR-denominated B2B payments.
- Sukuk Capital Markets
- Shariah-compliant fixed-income instruments listed on IFB. Common types include Murabaha and Ijarah sukuk.
- Taarof Culture
- A culturally important set of offer-and-decline rituals in business meetings. Important to recognise but not misinterpret as final position.
- Toman Banking
- 1 toman = 10 rials. Quoted in everyday commerce and increasingly in legislation; investors should confirm whether contracts quote IRR or tomans.
- TPO Trade
- Ministry of Industry, Mines & Trade body promoting exports, hosting trade missions and exhibitions.
- TSE Capital Markets
- The principal Iranian equity exchange with ~340 listed companies. TEDPIX is its headline index. Foreign investors require a trading code from SEO/CSDI.
- VAT Tax
- Currently levied at 10%. FTZ activities are generally exempt; SEZs are not.
- Withholding Tax Tax
- Dividends paid to foreign shareholders of FIPPA-licensed entities are generally exempt; royalties / service fees taxed at 5–25% depending on treaty.
Build-Operate-Transfer
Central Bank of Iran (Bank Markazi)
Counter-Financing of Terrorism / Anti-Money Laundering
Central Securities Depository of Iran
Double Taxation Treaty
Export Credit Agency
Engineering, Procurement & Construction
Council Regulation (EC) 2271/96
Foreign Investment Promotion & Protection Act
Free Trade & Industrial Zone
Iran Chamber of Commerce, Industries, Mines & Agriculture
Iran Fara Bourse (OTC Market)
Iran Mercantile Exchange
Iranian Mines & Mining Industries Development Organization
Instrument in Support of Trade Exchanges
Iranian National Tax Administration
Iran Petroleum Contract
Iran Energy Exchange
Islamic Republic of Iran Customs Administration
Iranian Rial
Know Your Customer
Limited Liability Company (Sherkat ba Masouliat Mahdoud)
Iranian double-entry accounting system
Integrated FX System (Nezam-e Yekparcheh-e Moamelat-e Arzi)
National Iranian Oil Company
US Office of Foreign Assets Control
Organization for Investment, Economic & Technical Assistance of Iran
Public Joint-Stock Company
Power Purchase Agreement
Private Joint-Stock Company
Pars Special Economic Energy Zone
Capital & dividend repatriation
Renewable Energy & Energy Efficiency Organization
Securities & Exchange Organization of Iran
Special Economic Zone
Card-acquiring switch
Iranian Inter-bank Payment Network
Iranian Islamic bond
Iranian etiquette of polite ritual
Common Iranian unit of account
Trade Promotion Organization of Iran
Tehran Stock Exchange
Value Added Tax
WHT on remittances
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