The cost of living in Iran is relatively low, and if you’re considering moving to Iran, you’ll find that you can live comfortably. Even though Western comforts may cost you a little more, expat packages are typically generous and provide a good quality of life.
Your biggest expense will likely be accommodation, particularly in Tehran, where housing costs have reached crisis levels. If you have children, international school fees will also be a significant cost to factor in. Public transport is affordable, and many everyday expenses are also budget-friendly.
Cost of accommodation in Iran
The cost of accommodation in Iran remains low compared to countries like the US, but it remains lower than in most other Middle Eastern countries. Housing prices, especially in Tehran, have reached crisis levels due to limited supply, with accommodation costs now consuming over half of household income in the capital. Iran ranks among the top 10 globally for unaffordable housing. Secure housing arrangements well in advance.
Whenever possible, try to negotiate an accommodation allowance with your employer. If that’s not an option, ask if your company has ties with landlords or agents to help you find affordable housing. Bear in mind that you’ll typically need to budget for utilities like electricity, water, gas, and internet, which are not usually included in the rent. Electricity costs have increased substantially in recent years, with residential rates rising significantly above certain consumption thresholds.
Cost of transport in Iran
Getting around Iran is easy on the wallet, especially if you use public transport. The metro and buses are inexpensive and reliable in major cities like Tehran.
If you prefer a bit more convenience, taxis and ride-sharing apps are also widely available, although they can be a bit pricier. Buying or renting a car can be expensive due to variable import policies, and recent changes to these policies have significantly increased costs for economy vehicles while actually reducing tariffs on luxury cars. However, fuel and maintenance costs are low, so car ownership can work well for longer stays.
Cost of groceries in Iran
Your grocery costs in Iran will largely depend on personal preferences, although food prices have risen significantly in recent years. Local supermarkets offer everyday groceries, and the quality of fresh produce is quite good, although costs have increased substantially. Cooking at home has become even more important for managing costs, as food inflation has made dining out relatively more expensive. For expats, local markets are often the best bet for fresh fruits and vegetables, while speciality shops stock imported goods at a premium, especially given the impact of international sanctions on availability.
Cost of eating out and entertainment in Iran
Although prices vary between establishments, eating out in Iran can be affordable. Dining regularly at gourmet or international restaurants will quickly add up, but if you stick to local eateries, you’ll find much better value for your money. Meals at smaller, local spots can be a bargain compared to higher-end dining options.
Entertainment costs can creep up. Entrance fees to museums and historical sites are reasonable, but if you visit many, it can add up. However, there are plenty of free or low-cost ways to enjoy your time in Iran. You can visit cultural sites or go hiking in the Darband and Darakeh Recreational Areas without spending a penny.
Cost of education in Iran
If you’re relocating to Iran with your family, one of your main concerns will be the cost of schooling. Most expats send their children to international schools, which are known for their excellent teaching standards and modern facilities. However, these schools have high fees, and the cost increases with each grade level.
School fees don’t typically cover everything. You’ll likely need to budget for extras such as uniforms, textbooks, trips, and other school expenses. Fortunately, many companies offer allowances for children’s education as part of their relocation packages. If this isn’t included in your offer, it’s worth mentioning during salary negotiations.
Cost of healthcare in Iran
The standard of public healthcare in Iran is generally good, with highly qualified doctors, although the system faces some staffing challenges. Most expats prefer private hospitals because of shorter waiting times and better facilities.
You’ll need thorough international health insurance to cover private healthcare costs, which can be quite high. Your employer will often arrange this for you, so it’s worth checking your contract details.
Cost of living in Iran chart
Prices are listed in Iranian rial (IRR) and may vary depending on product and service provider. The list below shows average prices for Tehran.
Accommodation (monthly rent) | |
Three-bedroom apartment in the city centre | IRR 517,000,000 |
Three-bedroom apartment outside the city centre | IRR 369,000,000 |
One-bedroom apartment in the city centre | IRR 258,000,000 |
One-bedroom apartment outside the city centre | IRR 185,000,000 |
Food and drink | |
Eggs (dozen) | IRR 355,000 |
Milk (1 litre) | IRR 192,000 |
Rice (1kg) | IRR 2,780,000 |
Loaf of white bread | IRR 75,000 |
Chicken breasts (1kg) | IRR 1,050,000 |
Cheese (500g) | IRR 595,000 |
Eating out | |
Three-course meal for two at a mid-range restaurant | IRR 5,580,000 |
Big Mac Meal | IRR 1,240,000 |
Coca-Cola (330ml) | IRR 146,000 |
Cappuccino | IRR 385,000 |
Bottle of beer (local) | IRR 0 |
Utilities/household | |
Mobile phone monthly plan with calls and data | IRR 267,000 |
Internet (uncapped ADSL or cable – average per month) | IRR 4,700,000 |
Basic utilities (average per month for a standard household) | IRR 4,885,000 |
Transportation | |
Taxi rate/km | IRR 18,775 |
City-centre public transport fare | IRR 30,000 |
Gasoline/petrol (per litre) | IRR 30,000 |
Further reading
►Find out about more about Moving to Iran
►Moving to Iran with children? Read all about Education and Schools in Iran
Are you an expat living in Iran?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Iran. Please contact us if you'd like to contribute, or fill in our expat interview form to be featured.
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