Calculate Estate Agency Commission and VAT

Estate agency commission in Iran has a legal ceiling and is calculated differently for a sale than for a rental. On a sale it is a percentage of the property price (half a percent from each side is common). On a rental the base is the “equivalent monthly rent”: the cash rent plus a percentage of the deposit treated as notional rent, with the default 1 percent conversion, every 100 million toman of deposit counts as one million a month. The commission percentage (typically 25 percent of one month’s rent from each side) then applies, and VAT is added, which has been ten percent since 1400. The output gives four figures: commission, VAT, the total per party and the total for both.

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How to use it

1. 1

   Choose sale or rental mode.

2. 2

   For a sale, enter the property price and the commission percentage; for a rental, the deposit, the monthly rent and the conversion rate.

3. 3

   Pick the VAT rate and read the total each party pays.

Frequently asked questions

How is the deposit converted to rent?

The default is 1 percent: every 100 million toman of deposit adds one million a month to the equivalent rent. If your area uses a different convention, change the conversion rate.

What is the VAT rate?

Ten percent since 1400 (nine percent before that). There is also a no-VAT option for cases that are exempt.

How much does each side pay?

The “per party” figure is what one side pays, and the last row is both sides combined. You can change the commission percentage to match local practice.