🇮🇷 Cost of Living: Iran vs Iraq — Price Comparison
Last updated: February 2026
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
Item
Iran (USD)
Iraq (USD)
Difference
1BR Apartment (City Center)
200
350
43% cheaper
1BR Apartment (Outside)
150
250
40% cheaper
3BR Apartment (City Center)
400
600
33% cheaper
Food & Dining Comparison
Item
Iran (USD)
Iraq (USD)
Difference
Meal at Restaurant
5
10
50% cheaper
Groceries (monthly)
100
150
33% cheaper
Beer (500ml)
2
5
60% cheaper
Coffee
1
2
50% cheaper
Transport Comparison
Item
Iran (USD)
Iraq (USD)
Difference
Monthly Transit Pass
10
20
50% cheaper
Taxi (per km)
0.5
1
50% cheaper
Fuel (per liter)
0.5
0.7
29% cheaper
Utilities & Internet Comparison
Item
Iran (USD)
Iraq (USD)
Difference
Utilities (85 sqm apt)
50
100
50% cheaper
Internet (60 Mbps)
20
30
33% cheaper
Mobile Plan
10
20
50% cheaper
Monthly Budget Comparison
Budget Tier
Iran (USD)
Iraq (USD)
Savings
Budget
400
600
33%
Mid-Range
800
1,200
33%
Comfortable
1,500
2,500
40%
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.