New Property Transaction Regulations in Iraq
The Central Bank of Iraq has enacted a significant policy change regarding property transactions in the country, stipulating that any real estate sale exceeding 100 million dinars must be conducted through a designated bank account. A representative of a private banking institution noted that they have reached out to the Central Bank for clarification on whether this regulation also extends to the Kurdistan Region.
On February 9, 2025, the Central Bank communicated this new directive to all licensed banks, introducing a standardized mechanism for real estate purchases and sales.
Under this framework, any property transaction valued above 100 million dinars now requires funds to be deposited in banks to facilitate the transfer through the Real Estate Registration Directorate. Customers will find that opening the required bank account incurs no fees, and it will be treated as a reproductive account.
The instructions clarify that properties sold for more than 100 million dinars cannot be registered in real estate transactions unless the associated funds have been deposited in a bank account.
This policy marks a significant shift, as the previous threshold for such transactions was set at 500 million dinars, effectively quadrupling the minimum amount that necessitates banking involvement.
Per the new guidelines, the maximum administrative fee for banking services associated with these transactions is capped at 25,000 dinars. Upon deposit of the funds, banks are required to notify the Real Estate Registration Directorate in writing before the transaction can be finalized.
The Iraqi Private Bank has issued a correspondence directed to the Central Iraqi Bank, particularly concerning implications in the Kurdistan Region.
This policy adjustment is part of the Central Bank’s broader strategy to enhance compliance with anti-money laundering and counter-terrorism financing protocols.
