Capital Flight from the Housing Market: Owner of 400 Residential Units Plans to Sell Properties and Relocate to Dubai
A prominent real estate developer in Tehran, who owns 400 residential units, has announced plans to sell his properties and transfer his capital to Dubai, citing dissatisfaction with new tax laws and restrictions in the housing market.
He stated:
“In Iran, property ownership has turned into a challenge rather than an asset. Owning more than one home incurs taxes. Rental income is taxed, and rent increases above 25% are prohibited, even if inflation is at 100%. If a property remains vacant and isn’t rented out, taxes still apply. Moreover, if the property’s value exceeds 20 billion tomans due to inflation, luxury property taxes are imposed. Under such conditions, operating in the housing market is no longer economically viable. That’s why I’ve decided to sell my properties and move my capital to Dubai.”
Meanwhile, Abolfazl Norouzi, the Director General of Housing Economics, previously emphasized that vacant home taxes apply to all properties, both new and old, without distinction. According to him, the tax amount is determined based on the rental value and the number of vacant properties. For individuals with one to five vacant homes, the first-year tax is six times the rental value, and for more than five homes, this increases to twelve times.
The Tehran developer concluded by criticizing the lack of stability in regulations and economic conditions, saying:
“Dubai, with its transparent laws and secure investment environment, is the best option for transferring capital. Under these circumstances, keeping assets in Iran no longer seems rational.”
