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Ease of Doing Business in

Iran, Islamic Rep

Iran, Islamic Rep Download Profile (1789.7KB, pdf)
Region Middle East & North Africa
Income Category Upper middle income
Population 79,109,272
GNI Per Capita (US$) 6,019
City covered Tehran

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 120 117 down
3
57.26 57.08 down
0.18
Starting a Business 102 97 down
5
85.06 84.86 up
0.20
Dealing with Construction Permits 27 27
-
78.50 77.90 up
0.60
Getting Electricity 94 90 down
4
69.15 69.17 down
0.02
Registering Property 86 85 down
1
64.17 64.33 down
0.16
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 165 166 up
1
35.00 35.00
-
Paying Taxes 100 99 down
1
69.79 69.79
-
Trading across Borders 170 171 up
1
40.66 39.38 up
1.28
Enforcing Contracts 70 69 down
1
60.00 60.00
-
Resolving Insolvency 156 155 down
1
25.25 25.32 down
0.07

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

86

DB 2016 Rank:

85

Change in Rank:

down1

DB 2017 DTF (% points):

64.17

DB 2016 DTF (% points):

64.33

Change in DTF (% points):

down0.16

STANDARD PROPERTY TRANSFER
Property value IRR 8,730,518,330
City Tehran
Indicator Iran, Islamic Rep Middle East & North Africa OECD high income
Procedures (number) info_outline 7 5.7 4.7
Time (days) info_outline 12 30.5 22.4
Cost (% of property value) info_outline 5.7 5.9 4.2
Quality of the land administration index (0-30) info_outline 15 12.5 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain a social security clearance certificate

    Agency: Social Security Organization

    A social security clearance certificate must be obtained from the Social Security Organization for properties being used for commercial purposes.

    7 days (simultaneous with Procedures 2, 3, 4 and 5) no cost
    * 2

    Conduct a check on the property at the Real Estate Registration Department

    Agency: Real Estate Registration Department

    The time of administrative formalities have been changed. Earlier replies to the real estates inquiries have been done manually. This was before the computer inquiry approach was introduced, and now it is performed by the computer systems and online websites of the registation organization that replaced long physical inquiries, many legel formalities, more paper usage and higher costs. Now the formalities last at least 3-4 days. The copy of the title deeds or replica copy is valid for one months untill the asnwer of the Land Registry is displayed on its official website.

    3 days (simultaneous with Procedures 1, 3, 4 and 5) IRR100,000 + IRR300,000 for urban areas
    IRR100,000 + IRR100,000 for rural areas
    * 3

    Obtain a tax clearance certificate from the Tax Affairs Organization

    Agency: Tax Affairs Organization

    The clearance of taxes is determined according to official regional values. The certificate is valid for 1 month. According to amended Article 1 of the Law on the Facilitation of Administration of Notary Public Office of July 2006, the public notaries must not register a property transaction before the receipt of the Tax Clearance Certificate (starting in March 20, 2016)

    1 day (simultaneous with Procedures 1, 2, 4 and 5) Transfer tax - 5% of the property price
    * 4

    Payment of transfer tax at Bank Melli

    Agency: Bank Melli

    The legal stamp should be paid at Bank Melli Iran before drafting the sale purchase agreement. According to the laws and regulations of the Registration Department, transfer tax is calculated according to the “Mantaghe Bandi” (zoning) price, so transfer tax for deeds up to IRR 40,000,000 would be 3% and for deeds of over IRR 40,000,000 would be 5% of the total amount. The price mentioned in the deed may be the ''Mantaghe Bandi'' price or the market price. In any way ‘‘Mantaghe Bandi'' is the basis of calculation which is between 7% to 10% of the real price. Even if the real price is mentioned in the deed, the basis of calculation for transfer tax is the ''Mantaghe Bandi'' price which is calculated by the notary.

    1 day (simultaneous with Procedures 1, 2, 3 and 5)
    0.5% of regional value of the property

    * 5

    Obtain settlement certificate for reconstruction duty from the Municipality

    Agency: Tax Affairs Organization

    A tax clearance certificate must be obtained from the Municipality to account for all the renovations made to the property.

    Less than a day (online procedure; simultaneous with procedures 1, 2, 3 and 4)

    no cost
    6

    The deed is prepared and notarized at the notary public’s office

    Agency: Public Notary

    The notary public collects an amount according to legal tariffs determined by the Organization of Deeds and Properties Registration at the time of drawing up the deed, which includes writing fee and the registration fee. According to the decree 87/8039 of the Deputy Head of the Organization for the Registration of Deeds and Properties.

    2 days In August 2015, the Decree 94/77811 reviewed the notary writing fees for immovable property transaction fees, as follows:
    For a property value
    1) up to 2,000,000 IRR: fixed fee of 600,000 IRR
    2) from 2,000,000 IRR to 10,000,000 IRR: 15% of the (cadastral) property value
    3) from 10,000,000 IRR to 50,000,000 IRR: 10% of the (cadastral) property value
    4) from 50,000,000 IRR to 100,000,000 IRR: 5% of the (cadastral) property value
    5) from 100,000,000 IRR to 200,000,000 IRR: 3% of the (cadastral) property value
    6) from 200,000,000 IRR to 500,000,000 IRR: 1% of the (cadastral) property value
    7) from 500,000,000 IRR to sum of 1,000,000,000 IRR: 0.4% of the (cadastral) property value
    8) above 1,000,000,000 IRR: 0.2% of the (cadastral) property value
    7

    The title is registered at the Real Estate Registration Department

    Agency: Real Estate Registration Department

    The title is registered at the Real Estate Registration Department by the notary public, who sends an abstract of the deed.

    According to the law of "the fifth economic ,social and cultural development plan(2011-2015)in Iran") Replace old title deeds and land property documents with new one, in order to increase security of deeds and also digitize deeds information and make executive modern registration method with the applying of Information Technology (IT).

    3 days IRR 500,000

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 15.0
    Reliability of infrastructure index (0-8) 6.0
    What is the institution in charge of immovable property registration? The State Organization for Registration of Deeds and Properties
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 1.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Only intermediaries (notaries, lawyers, etc.) 0.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://ssaa.ir/Default.aspx?tabid=63
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://ssaa.ir/Default.aspx?tabid=63
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, in person 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Only intermediaries (notaries, lawyers, etc.) 0.0
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, in person 0.0
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 4.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 4.0
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Notary.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? First instance public court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? More than 3 years 0.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0