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Iran provides incentives to foreign investors in free zones

Business Materials 19 July 2021 10:48 (UTC +04:00)
Iran provides incentives to foreign investors in free zones

TEHRAN, Iran, July 19

Trend:

Iran provides incentives for investment in fee zones, said the head of investment, bank and insurance affairs in Aras Free Zone.

One of the incentives is that 25 percent of the land price should be paid by investors first and the rest would be in form of installment during 30 months, Babak Abdelnejad told Trend in an interview.

Imported machinery to the free zone does not require customs tolls and formalities as well as a customs release procedure.

"The customs entry fee in Aras Free Zone would be considered for a discount equal to their value added that means if a product has 50 percent value-added, the producer would pay 10 percent instead of 20 percent customs fee. The law is the same about income tax in all free zones and producers are exempted from income tax in free zones," Abdelnejad noted.

"In regard of assigning land, foreign investors could register an Iranian company in the free zone with an Iranian partnership to purchase land from Aras Free Zone. The zone would do the process of passport and residency and there is no need for the bureaucracy of mainland. Foreign investors can remove its basic capital and profit out of the country," he added.

A big textile factory has been established with the partnership of an Iranian company by a Turkish investor in Aras Free Zone and foreign investors invested in the production of furniture and industrial commodities.

Major foreign investors are from Turkey, there are also investors from the Republic of Azerbaijan in cans and iron ingots production in the Aras Free Zone. A furniture manufacturing company from Azerbaijan has also received permits for production in the zone.

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