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 January 2020.

What is it like to live in Tehran?

Tehran is the capital and largest city of Iran.

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.

The population of Tehran is 15 Million (Metro) (2019 est.), and the inflation rate (CPI) is 27% for Iran as at November 2019.

The Xpatulator Hypothetical Tax for Iran is based on the current employment income tax rates which are progressive up to 35%.

For more information, we also cover Iran.

What is the cost of living in Tehran?

The cost of living for expatriates in Tehran as at January 2020 is very low in comparison to other places in the world. 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: for tobacco related products such as cigarettes. A basket costing USD$1000 in New York costs USD$490.
2) Clothing: for items such as business, casual and children's clothing and footwear. A basket costing USD$1000 in New York costs USD$810. Average price for an international brand of mens jeans is USD$51, a quality international brand of running shoes USD$174, mens leather shoes suitable for office wear USD$76 while a medium size international summer dress from a global chain store is USD$44.
3) Communication: 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$48. Average price for a monthly standard plan internet subscription is USD$18, while the benchmark mobile tariff is USD$0.01 per minute.
4) Education: for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30000 in New York costs USD$15900. Average annual private international school fee (excluding extras) USD$10,282 for Primary School, and USD$11,442 for High School.
5) Furniture & Appliances: for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2500 in New York costs USD$1000. Average price for a 6kg front loader Washing Machine is USD$533, and USD$458 for a 46+'' LED UHD TV.
6) Groceries: for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1000 in New York costs USD$370. Average grocery prices in a major international retail store for 1 kg apples is USD$1.70, 1 kg oranges USD$1.50, 1 head lettuce USD$0.87, 1 kg potatos USD$0.94, 1 kg boneless, skinless, chicken breast USD$5.20, 1 kg cheddar cheese USD$5.88, 1 dozen large eggs USD$2.15, 500g loaf white bread USD$0.61, 1 L full cream milk USD$1.25, and 1.5 L water USD$0.52.
7) Healthcare: for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1000 in New York costs USD$240. Average healthcare cost for a private practice Doctor visit for an uninsured patient is USD$19, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is USD$597.
8) Household Accommodation: for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5000 in New York costs USD$2800. Average expatriate house / apartment rent for a secure upmarket unfurnished apartment (3 bedrooms) is USD$3,205 in a central location, and USD$1,921 in a suburban location, per month, excluding utilities.
9) Miscellaneous: for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$250. Average price for dry cleaning (1 mens 2 pc suit) is USD$4.84, while an international newspaper is USD$1.49.
10) Personal Care: for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$170. Average cost for a mens haircut and blow dry is USD$14, while a womens hair colour, cut and blow dry - medium length is USD$69.
11) Recreation & Culture: for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$305. 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$36 per month.
12) Restaurants Meals Out and Hotels: for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1000 in New York costs USD$410. Average cappuccino price (regular, medium) is USD$2.43, coke/pepsi (330ml) USD$0.69, burger meal (international franchise or similar) USD$7.64, and a mid-range international restaurant meal for 2 USD$26.00.
13) Transport: for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1000 in New York costs USD$450. Average average price over the last year for highest available octane petrol / gasoline (1L) is USD$0.24, while the benchmark car sedan purchase price including taxes/duties for a compact / small / economy vehicle (1.4 L) is USD$51,125.

How does the cost of living in Tehran compare?

Tehran is -42.8% cheaper than Houston TX for groceries, 62.7% more expensive for household costs than Kuala Lumpur, and -24.6% 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%.