Nouraei & M. Mostafavi Law Offices – 25 February.2025- Iran passed the Production and Infrastructure Financing Law on 2/12/1402 (21 February 2024) in connection with attracting foreign investments aimed at financing the infrastructure projects necessary for production or services.
According to Article 29, paragraph A of the Law: “The government has the authority to facilitate and grant residency to foreign nationals who have invested a minimum amount of foreign currency or Rial in Iranian credit institutions, or who have made direct or indirect investments in Iran, or who have purchased government or foreign currency securities for domestic projects…”.
The executive regulations of Article 29, paragraph A, with the subject of “facilitating and granting residency to applicants for foreign currency and Rial deposits,” have been approved by the Council of Ministers under Resolution No. H63555 T/172819 dated 10/11/1403 (1 February 2025). It was published in the Official Gazette No. 23238 dated 21 / 11/ 1403 (9 February 2025) for the public knowledge. Excerpts:
Article 1- In these regulations, the terms are used in the meanings explained below:
1- Law: Law on Financing Production and Infrastructures, approved in 1402 (2024).
2- Council: National Council for Financing subject to paragraph (a) of Article (2) of the Law.
4- Investment Organization: The Organization for Investment, Economic & Technical Assistance of Iran (OIETAI)
5- Stock Exchange Organization: Securities and Exchange Organization.
6- Central Bank: Central Bank of the Islamic Republic of Iran.
7- Commission: Special Residence and Facilities Commission of the Ministry of Interior.
8- Secretariat: Secretariat of the Commission.
9—Iranian credit institutions: credit institutions subject to paragraph (h) of Article (1) of the Central Bank of the Islamic Republic of Iran Law, approved in 1402 (2023), that have a foreign exchange operation license from the Central Bank.
10—Depositor: Non-Iranian real persons who, based on these regulations and in compliance with the laws and regulations of the Islamic Republic of Iran, make forex deposits of the foreign currency brought in from abroad.
11- Investor: Non-Iranian individuals who, based on these regulations and in compliance with the laws and regulations of the Islamic Republic of Iran, make investments in Iran.
12- Foreign Direct Investment: The types of investments mentioned in Article (3) of the Foreign Investment Promotion and Protection Act (FIPPA), approved in 1380 (2002).
13- Foreign Indirect Investment: Investment subject to the Executive Regulations on Foreign Investment in Stock Exchanges and Over-the-Counter Markets…
14- Residence Permit: Based on these regulations and in compliance with the laws and regulations of the Islamic Republic of Iran, is a permit for a specific period following a foreign national’s application for residence, issued by The Immigration & Passport Police Office of Law Enforcement Command of the Islamic Republic of Iran and, as the case may be, after approval by the Investment Organization (direct investment applicants), the Stock Exchange Organization (indirect investment applicants, governmental or foreign exchange securities for domestic projects) and the Commission (deposit applicants).
Article 2- The Commission is responsible for examining and making decisions regarding applications for residence permits with respect to the deposit applicants.
Article 4- Note 1- The deadline for depositing the investment amounts is a maximum of two months from the date of notification of the Commission’s approval. Otherwise, the relevant application will be considered null and void.
Article 5 – Iranian credit institutions, utilizing the methods approved by the Central Bank, shall receive foreign currency brought into the country or its Rial equivalent from applicants introduced by the Secretariat and shall include it in the form of foreign currency or Rial deposits (the Rial equivalent of the received currency) within the framework of the regulations notified by the Central Bank for foreign nationals. Iranian credit institutions shall be obliged to send the deposit confirmation to the Secretariat within three days after opening the account.
Article 6: After receiving the deposit confirmation from Iranian credit institutions, the Commission shall proceed within (20) days to issue a residence permit to the applicant and his/her family by the instructions in Article (13) of these regulations. The residence permit issued shall be forwarded to the Immigration & Passport Police Office of Law Enforcement Command of the Islamic Republic of Iran for issuance of a residence license, and that department shall issue the said residence license within one week.
Note 1- Issuance of foreign currency deposit confirmation by Iranian credit institutions is a guarantee of securing the principal and interest derived from it in foreign currency by Iranian credit institutions, and issuance of Rial deposit confirmation by Iranian credit institutions is a guarantee of securing the principal and interest derived from it in Rial.
Note 3—The transfer of the Rial deposit amount abroad is carried out at the agreed market exchange rate approved by the Central Bank.
Note 4—After obtaining a residence permit, depositors are not restricted from leaving or returning to the country during its validity period.
Article 7: At the end of the deposit period, based on the contract concluded between the depositor and Iranian credit institutions, the depositor may invest the principal and profits from the deposit as capital of foreign origin within the framework of the Foreign Investment Promotion and Protection Act approved in 1380(2002) and its executive regulations subject to the decree No. H27032T/23/1/1381 dated 23/1/1381 (10 April 2002)with subsequent amendments in a new or existing investment plan (project) after completing the relevant procedures.
Article 8: The depositor may, based on the contract concluded between the depositor and Iranian credit institutions, submit a request for the cancellation of the residence permit to the Secretariat before the end of the deposit period and withdraw the deposit amount after the approval of the Commission.
Article 15: The depositors who apply for employment in the country after obtaining a residence permit are introduced by the Secretariat to the Ministry of Cooperatives, Labor, and Social Welfare to determine the applicant’s employment status in the country and issue a work permit for the foreign national within the framework of relevant laws and regulations. The residence permit issued is not a permit by itself to work in the country and is subject to relevant laws and regulations.
Article 16: Executive agencies are required to coordinate and provide services in compliance with relevant laws and regulations for residence permit holders to benefit from public services such as healthcare, educational and training services, obtaining a driver’s license, and domestic travel services.
The duration of the services above is equal to the applicant’s legal residence period under these regulations.
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