A Guide to Iran’s Free Trade Zones: Tax Free!

According to SAEDNEWS, Iran’s Free Trade Zones (FTZs) have become key hubs for boosting the country’s economy, attracting foreign investments, and promoting trade. These zones, strategically located across different parts of the country, offer numerous advantages, including tax exemptions, reduced customs duties, and simplified administrative processes for businesses. They serve as ideal locations for trading, manufacturing, and technology transfer. By 2024, Iran boasts eight Free Trade-Industrial Zones: Kish, Qeshm, Chabahar, Aras, Anzali, Arvand, Maku, and the Imam Khomeini Tehran Airport Free Trade Zone. Let's explore these zones and understand what makes them stand out.

1. Kish Free Zone

Kish Free Zone holds the title of Iran’s first and most established free trade zone. Located on Kish Island, in the Persian Gulf, this zone has a long history as a trading hub, especially for pearls. Today, Kish is a significant center for industries such as electronics, food production, and pharmaceuticals. The island also offers a unique shopping experience, where foreign cars and international brands can be found. Tourists are drawn to its luxurious shopping malls, making it not only an industrial hub but also a popular tourist destination.

What makes Kish special?

- Tax exemptions for up to 20 years.

- Simple visa procedures, making it a prime location for international travelers.

- The presence of shopping centers filled with both Iranian and foreign goods.

2. Qeshm Free Zone

Qeshm Free Zone, situated 37 kilometers from Bandar Abbas, is Iran’s largest island in the Persian Gulf. This zone is known for its strategic location, sitting at the mouth of the Strait of Hormuz, a vital passage for global oil trade.

Qeshm has become a focal point for industries like oil, gas, and energy. The island’s diverse ports make it a hub for both domestic and international trade. With its rich history and convenient location, Qeshm attracts investors in sectors such as shipping, logistics, and eco-tourism.

Shopping in Qeshm

The island is a great place for those looking for bargains on food, cosmetics, and pharmaceuticals. Its shopping centers, like the Persian Gulf Shopping Center, are perfect for finding both local and international brands at competitive prices.

3. Chabahar Free Zone

Located near the Makran coast, the Chabahar Free Zone is a vital transit corridor, connecting Iran to South Asia and beyond. This strategic location, bordering Afghanistan and Pakistan, gives Chabahar a significant advantage as a gateway to the Oman Sea and the Indian Ocean.

Established in 1992, this zone is known for its potential in trade, transportation, and logistics. It serves as a key shopping hub for household appliances and electrical products, making it a valuable area for both commercial and residential development.

4. Aras Free Zone

The Aras Free Zone is located near the borders of Azerbaijan, Armenia, and Turkey, making it a key player in international trade and transit. Since its establishment in 2005, Aras has grown into a center for agriculture, clean industries, and tourism. Its close proximity to the industrial city of Tabriz enhances its role as a major hub for both Iranian and foreign businesses.

Why Aras stands out:

- It’s located along important trade routes.

- The zone focuses on sustainable industries, like eco-tourism and clean manufacturing.

- Aras is a shopping destination for sanitary products, beauty supplies, clothing, and home appliances.

5. Anzali Free Zone

The Anzali Free Zone, located along the Caspian Sea, is one of Iran’s newer free trade zones, established in 2005. The zone includes important districts like Rasht and Anzali and plays a significant role in promoting trade, tourism, and transportation. Anzali’s ten mechanized docks make it a key player in maritime transport, attracting companies looking for efficient shipping solutions.

What can you find in Anzali?

In addition to its tax and customs duty exemptions, Anzali is ideal for those looking to buy goods in bulk. It’s a perfect place for wholesale traders and industries needing large-scale shipping facilities.

6. Arvand Free Zone

Arvand Free Zone is located in the northwest of the Persian Gulf, near Iraq and Kuwait. The zone includes the historic towns of Abadan and Khorramshahr, as well as Minoo Island. Covering about 37,400 hectares, Arvand is one of Iran’s busiest FTZs. It plays an essential role in the trade of electrical appliances, clothing, beauty products, and international food items. Its location makes it a vital trade and transit point for both local and international businesses.

7. Maku Free Zone

Maku Free Zone is one of Iran’s largest FTZs, located in West Azerbaijan. Its position near the borders of Turkey and Azerbaijan places it at a critical point for goods moving between Europe and the Middle East. The zone’s vibrant market offers a variety of goods, including clothing, snacks, and electrical appliances. Maku’s size and proximity to international trade routes make it a crucial player in regional commerce.

8. Imam Khomeini Tehran Airport Free Trade Zone

Located at one of Iran’s busiest airports, the Imam Khomeini Tehran Airport Free Trade Zone aims to become a major air freight and passenger hub.

This zone enhances the airport’s strategic importance, making it a prime area for businesses involved in logistics, transportation, and international trade. The Free Trade Zone simplifies many of the bureaucratic hurdles businesses usually face, making it easier for companies to operate within Iran and beyond.