Cost of living in Tehran, prices and what it is like to live for an Expat, quality of life / hardship, and compare cost of living for Expatriates as at October 2020.

What is it like to live in Tehran?

Tehran: Tehran is the capital and largest city of Iran.

Economy: Tehran is the economic centre of Iran. About 30% of Iran's public-sector workforce and 45% of large industrial firms are located in Tehran and almost half of these workers work for the government. Most of the remainder of workers are factory workers, shopkeepers, labourers, and transport workers.

Inflation: 34.4% for Iran as at September 2020.

Tehran Population: 15 Million (Metro) (2020 est.)

Expat Life: The dress code for expatriate businessmen is a suit and a conservative tie, while women must comply with the Islamic dress code, which is strictly enforced and should dress modestly with a long skirt and a headscarf. Before discussing business, it is important to make personal enquiries about the other person's health and family. The working week is Saturday to Thursday morning. Government offices are usually closed on Thursday. Banks are open Saturday to Wednesday 07.30-13.30. The safety risk for expatriates in Iran is medium, but high in Sistan-e-Balochistan, which is relatively underdeveloped, desolate, and poor. Risks include low levels of petty and violent crime (mainly in poor urban areas), and risks associated with protest action. Expatriates should be cautious not to offend local culture and religious sensitivities with regard to dress and behaviour.

Health Care: Health care facilities are generally reasonable in the major urban areas but poor in rural areas. The Coronavirus COVID-19 total reported cases for Iran as at 22 October 2020 is 550,757, with 31,650 deaths. The rate of deaths per 1 million population is 375.

For other areas within the country see Iran.

Cost Of Living

What is the cost of living in Tehran?

The cost of living for expatriates in Tehran as at October 2020 is low in comparison to other places in the world, with an overall Cost of Living Index (COLI), for all 13 basket groups, of 48.32 (New York =100). We have collected prices for the same items, world wide, based on Expat spending norms, in or closest to the location, and converted them to $USD so that we can compare the cost of 13 different baskets in 780 global locations. For each basket, compared to New York, the equivalent cost in Tehran is as follows:

1) Alcohol and/or Tobacco: Cost is very low for tobacco related products such as cigarettes. A basket costing USD$1000 in New York costs USD$480.

2) Clothing: Cost is average for items such as business, casual and children's clothing and footwear. A basket costing USD$1,000 in New York costs USD$830. Average price for an international brand of mens jeans is USD$55, a quality international brand of running shoes USD$150, mens leather shoes suitable for office wear USD$92 while a medium size international summer dress from a global chain store is USD$42.

3) Communication: Cost is very low for various communication costs such as home telephone rental, internet subscription, mobile service provider tariff and data costs. A basket costing USD$200 in New York costs USD$66. Average price for a monthly standard plan internet subscription is USD$21, while the benchmark mobile tariff is USD$0.02 per minute.

4) Education: Cost is very low for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30,000 in New York costs USD$11400. Average annual private international school fee (excluding extras) USD$7,338 for Primary School, and USD$8,166 for High School.

5) Furniture & Appliances: Cost is very low for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2,500 in New York costs USD$900. Average price for a 6kg front loader Washing Machine is USD$520, and USD$446 for a 46+'' LED UHD TV.

6) Groceries: Cost is very low for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1,000 in New York costs USD$390. Average grocery prices in a major international retail store for 1 kg apples is USD$1.64, 1 kg oranges USD$1.39, 1 head lettuce USD$0.81, 1 kg potatos USD$0.96, 1 kg boneless, skinless, chicken breast USD$4.21, 1 kg cheddar cheese USD$5.55, 1 dozen large eggs USD$2.24, 500g loaf white bread USD$0.87, 1 L full cream milk USD$1.29, and 1.5 L water USD$0.53.

7) Healthcare: Cost is average for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1,000 in New York costs USD$640. Average healthcare cost for a private practice Doctor visit for an uninsured patient is USD$52, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is USD$1,591.

8) Household Accommodation: Cost is high for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5,000 in New York costs USD$3000. Average expatriate house / apartment rent for a secure upmarket unfurnished apartment (3 bedrooms) is USD$2,666 in a central location, and USD$1,704 in a suburban location, per month, excluding utilities.

9) Miscellaneous: Cost is very low for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$120. Average price for dry cleaning (1 mens 2 pc suit) is USD$2.34, while an international newspaper is USD$0.72.

10) Personal Care: Cost is high for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$365. Average cost for a mens haircut and blow dry is USD$29, while a womens hair colour, cut and blow dry - medium length is USD$146.

11) Recreation & Culture: Cost is very low for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$190. Average price for a latest release international cinema ticket (average of on and off peak where applicable) for one adult is USD$4.63, and an international fitness, recreation or sports club membership cost for one adult is USD$39 per month.

12) Restaurants Meals Out and Hotels: Cost is very low for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1,000 in New York costs USD$320. Average cappuccino price (regular, medium) is USD$2.87, coke/pepsi (330ml) USD$0.69, burger meal (international franchise or similar) USD$6.18, and a mid-range international restaurant meal for 2 USD$30.88.

13) Transport: Cost is very low for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1,000 in New York costs USD$410. Average average price over the last year for highest available octane petrol / gasoline (1L) is USD$0.30, while the benchmark car sedan purchase price including taxes/duties for a compact / small / economy vehicle (1.4 L) is USD$50,000.

How does the cost of living in Tehran compare?

Tehran is -49.1% cheaper than Houston TX for groceries, 63.8% more expensive for household costs than Kuala Lumpur, and -32.9% cheaper for transport costs than Dubai.

What is the quality of life / hardship in Tehran?

Tehran is ranked as an extreme hardship location.The hardship premium for Tehran for an expat from Perth, is for example 30%, i.e. host location (Tehran) premium of 40% minus home (Perth) location premium of 10%.

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