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Buying Property

Jordan - Buying Property

All foreign nationals are allowed to buy property in Jordan, obtaining permission to do so has become quite simple, but it does require a reciprocal agreement between Jordan and the resident's home country and the approval of cabinet ministers. Foreigners can only sell the property five years after first acquiring it. Jordan's capital city, Amman is where most properties for rent and for sale are located.

When purchasing property in Jordan you will need the services of an estate agent. However, it is not compulsory to use a lawyer to deal with the legal side of things if you choose not to.

There are other government agencies involved in the registration of the property. These include the Lands and Surveys Department and the Minister of Finance. The Lands and Surveys Department provide the official sale forms that are to be acquired as well as the cadastral map and certificate of ownership and a Tax clearance is obtained from the Ministry of Finance.

The registration fee of 10% is paid to transfer ownership of the title after closing the transaction. This fee is divided between the buyer and the seller. The government transfer taxes on selling and buying property require 4% of the selling price of the property from the seller and 6% of the property selling price from the buyer.

There is an annual property tax to be paid in Jordan; the amount of the tax will be determined by the local Municipality. The location, size, quality of the property is taken into account as well as any rental income brought in by the property.

There are also brokerage fees due to be paid, the typical brokerage fees require 2% of the selling price from the buyer and 2% of the selling price from the seller. In addition to that, 16% of the brokerage fee is payable to cover the Government Sales Tax. The only exceptions made are for those who are tax exempt in Jordan.

A stamp duty of 0.6% is imposed on the sales contracts; it must be paid within one month of the conclusion of the contract. Failure to do so will result in a fine, equal to three times the amount of duty payable.

It is fairly easy to find domestic help in Jordan if you should require it. It is advised that you check the references of all staff. There are some communities which have a large number of expats living there, but there are no specific areas where expats are not allowed to live.

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