Verified Facts

Official NameIslamic Republic of Iran
CapitalTehran
Population86.0 million
Area1,648,195 km² (636371 sq mi)
LanguagesPersian (Farsi)
CurrencyIranian rial (ï·¼)
TimezoneUTC+03:30
RegionAsia / Southern Asia
Drives onRight
Source: REST Countries API

Economic Indicators

GDP per Capita (PPP)$19,874 (2024)
Inflation Rate32.5% (2024)
Health Spend per Capita$267 (2023)
Out-of-Pocket Health Spend43.1% (2023)
Education Spend (% GDP)2.8% (2023)
Source: World Bank Open Data

Iran is generally cheaper than Iraq, with an overall cost of living that is around 20-30% lower.

Quick Facts

Iran GDP per Capita (PPP)14,400
Iraq GDP per Capita (PPP)10,400
Iran Inflation Rate36.4
Iraq Inflation Rate6.9
Overall Winner (Cheaper)Iran

Overview: Iran vs Iraq

Iran and Iraq are two neighboring countries in the Middle East with distinct economic and cultural profiles. Iran has a more diversified economy, with a strong presence of industries such as oil and gas, automotive, and textiles, whereas Iraq's economy is heavily reliant on oil exports. In terms of cost of living, Iran is generally cheaper than Iraq, with lower prices for accommodation, food, and transportation. The economic context of the two countries also plays a significant role in determining the cost of living, with Iran's larger and more diversified economy contributing to its lower prices.

The cost of living in Iran is around 20-30% lower than in Iraq, making it an attractive destination for expats, students, and retirees looking for an affordable lifestyle. However, it's essential to note that prices can vary significantly depending on the location, with cities like Tehran and Isfahan tend to be more expensive than smaller towns and rural areas. In Iraq, the cost of living is higher, particularly in cities like Baghdad and Erbil, where the demand for accommodation and services is high due to the presence of international organizations and businesses.

Rent & Housing Comparison

ItemIran (USD)Iraq (USD)Difference
1BR Apartment (City Center)20035043% cheaper
1BR Apartment (Outside)15025040% cheaper
3BR Apartment (City Center)40060033% cheaper

Food & Dining Comparison

ItemIran (USD)Iraq (USD)Difference
Meal at Restaurant51050% cheaper
Groceries (monthly)10015033% cheaper
Beer (500ml)2560% cheaper
Coffee1250% cheaper

Transport Comparison

ItemIran (USD)Iraq (USD)Difference
Monthly Transit Pass102050% cheaper
Taxi (per km)0.5150% cheaper
Fuel (per liter)0.50.729% cheaper

Utilities & Internet Comparison

ItemIran (USD)Iraq (USD)Difference
Utilities (85 sqm apt)5010050% cheaper
Internet (60 Mbps)203033% cheaper
Mobile Plan102050% cheaper

Monthly Budget Comparison

Budget TierIran (USD)Iraq (USD)Savings
Budget40060033%
Mid-Range8001,20033%
Comfortable1,5002,50040%

Where Each Country Wins

  • Iran is cheaper for:
  • Rent and housing, with prices up to 43% lower than in Iraq
  • Food and dining, with meals and groceries up to 50% cheaper
  • Transportation, with monthly transit passes and taxi fares up to 50% lower
  • Utilities and internet, with bills up to 50% cheaper
  • Iraq is cheaper for:
  • Certain electronic goods, which can be up to 20% cheaper due to lower import taxes
  • International flights, with more frequent and affordable connections to Europe and the Middle East
  • Hotel accommodation, with some luxury hotels offering competitive rates
  • Certain medical services, with some private hospitals and clinics offering high-quality care at lower prices

Bottom Line

Iran offers better value for expats, students, and retirees looking for an affordable lifestyle, with lower prices for accommodation, food, and transportation. However, Iraq may be more suitable for those who prioritize convenience and connectivity, with more frequent international flights and a wider range of luxury hotels. For families, Iran may be a better option, with lower prices for housing and utilities, as well as a more diverse range of cultural and educational activities. Ultimately, the choice between Iran and Iraq depends on individual priorities and lifestyle preferences.