Cost of Living in Iran
for Expats 2026

Tehran apartment rentals are exceptionally cheap in dollar terms: expect $200–$400/month for a modern 1-bedroom in central Shiraz or Isfahan, or $100–$250 in secondary cities. However, inflation at 40% annually creates rapid price volatility. Long-term furnished apartments for expats run $300–$600/month depending on neighborhood quality and amenities. Purchasing property as a foreigner faces legal restrictions and currency controls that make real estate transactions extremely difficult.

Local produce and bread cost virtually nothing by Western standards—expect $30–$50/month for basic groceries if eating locally. Traditional bazaar shopping for fruits, vegetables, and dairy is the cheapest option. Imported foods (Western brands) are rare and extremely expensive when available. Restaurant meals in local establishments cost $2–$5; kebab and traditional stews dominate affordable dining. Monthly food budget for basic expat living: $60–$120.

Public transport in Tehran (metro and buses) costs pennies per ride—approximately $0.10–$0.20. Taxis are similarly affordable but unmetered and require negotiation. Ride-sharing apps function intermittently due to sanctions. Car rental and ownership face insurance and fuel cost challenges compounded by currency fluctuations. Monthly transport budget: $10–$30 on public transit, $50–$100 for occasional taxis.

Iran has a functioning public healthcare system, though access for foreign expats is limited and requires navigating bureaucracy. Private clinics in major cities (Tehran, Isfahan) offer basic services at very low cost—$5–$20 for a consultation. Prescription medications are cheap but supply chains can be disrupted. Travel insurance strongly recommended; Western expats should verify coverage before arrival, as many international policies exclude Iran.