The Speculation and Arbitrage (Capital Gains) Tax Law has officially entered into the implementation phase. This law was passed by the Parliament on June 28, 2025 and subsequently approved by the Guardian Council.
What is the Capital Gains Tax Law?
The Capital Gains Tax Law was enacted in Iran with the aim of curbing speculative activities in asset markets and directing investments toward productive sectors of the economy. Under this law, profits derived from frequent and short-term trading of certain assets are subject to taxation.
Objectives of the Law:
Reducing speculative and arbitrage activities in non-productive markets
Controlling price bubbles in markets such as real estate, automobiles, gold, and foreign exchange
Encouraging investment in production, industry, agriculture, and other productive activities
Taxable Assets:
Profits from the purchase and sale of the following assets are subject to taxation:
Real Estate: residential, commercial properties, and tenancy rights
Automobiles: passenger cars with private license plates
Precious Metals: gold, silver, platinum, coins, and jewelry
Currencies: foreign currencies and cryptocurrencies (excluding Iran’s digital rial)
Exemptions:
Certain transactions are exempt from taxation, including:
Households: each household head may annually trade up to two properties and two vehicles tax-free
Productive Properties: real estate used for productive, industrial, agricultural, or mining purposes
Family Transfers: such as inheritance or transfers among first-degree relatives
Tax Rates and Holding Period:
Tax rates vary depending on the holding period of the asset:
Less than one year: up to 40% of sales profit
More than two years: reduced rates or full exemption
The longer the holding period, the lower the tax rate.
Implementation:
Gradual rollout: initially covering housing and automobile markets, then extending to other sectors
National Trading System: transparent registration of all transactions
Tax Certificate Requirement: mandatory prior to the official registration of transactions in notary offices
Importance of the Law:
The enforcement of this law is expected to reduce speculative activities, stabilize prices, and channel investments toward production and job creation. Consequently, economic pressures on households will also be alleviated.
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