Free Zone & Investment Vehicle Establishment
Iraq’s Free Zones offer foreign and domestic investors a favorable business environment with customs, tax, and regulatory incentives to support trade, industrial activities, and service operations. Companies established in Free Zones may operate with increased flexibility in import/export activities, and can serve both regional and international markets.
Legal Framework
Free Zones in Iraq are regulated by the Free Zones Law No. 3 of 1998 and its implementing regulations, under the supervision of the General Commission for Free Zones. The law permits full foreign ownership, profit repatriation, and simplified procedures for licensing and project registration.
Permitted Activities
- Trade and commercial activities
- Import and export operations
- Warehousing and logistics
- Industrial and manufacturing projects
- Maintenance and repair operations
- Service and consulting activities
Establishment Requirements
- Submit an application for project approval
- Provide business plan or activity description
- Register the company or branch entity
- Obtain zone-specific operating license
- Open local bank account (when required)
- Comply with security and customs regulations
Customs & Trade Treatment
Goods entering the Free Zone are not subject to customs duties unless released into Iraq’s local market, in which case standard customs tariffs apply. Goods exported outside Iraq may leave without customs duties.
Investor Considerations
- Type of activity (industrial, commercial, service)
- Licensing requirements
- Customs interaction for dual-market operations
- Payroll and staffing needs (local vs foreign)
- Zone infrastructure and logistics capabilities
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.