Jordan – Property Taxes

What taxes and fees apply when buying a property in Jordan?

Several government-mandated charges and taxes arise when acquiring property in Jordan, and all must be settled at or before the point of registration with the Department of Lands and Survey (DLS). As a general rule, the buyer bears responsibility for paying property transfer fees to the authorities. Being clear on these costs ahead of time allows you to budget accurately and avoid surprises.

Transfer fee: When buying an apartment from another individual, the first 150 square metres attract a transfer fee of 3%, while any area beyond that threshold is charged at 6%. Where the purchaser is buying for the first time, a rate of 4.5% of the administrative price applies instead. All other categories of property — including villas, plots of land, and farms — are subject to an assignment fee of 6%. These percentages are applied to the property’s administrative (assessed) value, which is determined by the government and may not match the agreed sale price, as of 2025. Buyers should always confirm current rates directly with the DLS.

Stamp duty: Stamp duty is charged at 0.3% on private contracts and 0.6% on contracts entered into with the state or public-sector entities. By comparison, equivalent duties in jurisdictions such as the United Kingdom or Canada can reach several percent of the full sale price, making Jordan’s rates relatively modest.

Registration fees: In aggregate, property transfer taxes amount to approximately 9% of the sale price, comprising roughly 5% for registration fees and 4% for the sale itself. Figures cited by different sources may vary slightly depending on property type and the relationship between the administrative value and the agreed sale price — confirm the precise breakdown with the DLS before finalising your purchase.

Legal and notary fees: Jordan’s laws do not prescribe a mandatory fee schedule for legal services. Lawyers’ charges are negotiated directly between client and adviser, and typically fall within the range of 0.5% to 1% of the property value, though they may vary depending on the complexity of the transaction. Powers of attorney used for property disposal must be carefully prepared and are generally valid for one year only — unless a shorter period is specified — except where issued between family members. If personal attendance at closing is not possible, legal representation through a notarised power of attorney is permitted.

Pre-transfer clearance: Before a property transfer can commence, all outstanding financial obligations attached to the property must be cleared. This means obtaining a clearance certificate confirming that taxes, fees, and other levies imposed by relevant authorities have been paid in full. While this step carries no direct cost to the buyer, it must be completed before title can legally pass.

Worked example — apartment purchase in Amman (as of 2025): Consider a 130 m² apartment purchased for JOD 120,000 (approximately USD 169,000), where the administrative value is assessed at JOD 110,000. As a first-time buyer, the transfer fee is 4.5% of JOD 110,000 = JOD 4,950. Stamp duty at 0.3% on JOD 120,000 = JOD 360. Estimated legal and agent fees (approximately 1%) = JOD 1,200. Total estimated additional costs: ~JOD 6,500, representing roughly 5–6% of the purchase price. A repeat buyer of an equivalent apartment paying the standard 3% rate would face a lower transfer fee of JOD 3,300. Always verify the current administrative value and applicable rates with the DLS before exchanging contracts.

What taxes and fees apply when selling a property in Jordan?

Sellers in Jordan face limited direct tax obligations at the point of disposal, given that transfer fees are formally the buyer’s responsibility. Nonetheless, vendors should be aware of several practical obligations and customary costs.

Transfer fees — seller’s liability: Under Jordanian law, transfer fees are borne by the buyer because ownership of the property is being conveyed to them. That said, it is not unusual in practice — particularly in a softer market — for the buyer and seller to reach a mutual agreement to divide the transfer costs between them.

Municipal tax clearance: Before the DLS will authorise the transfer of title, the seller is generally required to demonstrate that all outstanding municipal taxes have been paid. Any unpaid Musqafat annual property tax arrears (see below) must be settled in full prior to completion of the sale.

Agent (real estate broker) fees: Real estate commissions in Jordan are not subject to statutory regulation, but typically run between 2% and 3% of the agreed sale price. By convention, these charges are borne by the seller. You should confirm the exact fee arrangement in any agency agreement before signing.

Legal costs: Most sellers engage a lawyer to review documentation and supervise the DLS process. As with buyers, fees are privately negotiated and commonly fall in the range of 0.5%–1% of the transaction value, with higher charges possible where the deal involves mortgage redemption, shared ownership, or powers of attorney.

No seller-specific transfer tax: Jordan does not impose a separate transfer tax on sellers. This contrasts with jurisdictions such as France, where vendors may be subject to a plus-value immobilière surcharge on gains. The principal costs for a seller in Jordan are clearing any outstanding municipal liabilities, broker fees, and legal expenses.

Is capital gains tax payable on property sales in Jordan?

Jordan’s approach to capital gains on property is exceptionally favourable for private sellers. As a general rule, capital gains — including those arising from the sale of shares and land — are not subject to tax in Jordan. This stands in marked contrast to many other countries, where residential property gains can trigger substantial tax liabilities. In the United Kingdom, for instance, higher-rate taxpayers face capital gains tax on residential property, while Canada and Australia apply capital gains inclusion rules to such disposals.

Capital gains realised within Jordan are exempt from tax, with limited exceptions: gains on the disposal of depreciable assets under Jordanian tax law, gains from selling shares in legal persons, and gains from the first sale of shares in information technology companies and institutions within 15 years of their establishment. For a private individual disposing of residential or commercial property, the exemption applies broadly.

How a gain is calculated: Under Jordanian tax legislation, a “capital gain” arises from the sale or replacement of capital assets — defined as assets acquired or financially leased with the intention of holding them for more than one year. The gain is determined by deducting the original cost of the asset from the proceeds received. Even though this calculation mechanism exists in statute, the gain on a private property disposal is exempt from income tax for individuals.

Non-residents: Jordanian tax applies only to income sourced within Jordan, for both residents and non-residents alike. Since capital gains from private property sales are exempt for individuals, this exemption extends to non-resident sellers equally — a feature that enhances Jordan’s attractiveness for overseas property investors. Nonetheless, non-residents should seek independent advice in their country of tax residence, as that jurisdiction’s domestic rules may still impose tax on any profit made.

Practical example: Suppose you bought an apartment in Amman for JOD 80,000 and sell it five years later for JOD 120,000, generating a nominal profit of JOD 40,000. As a private individual, no Jordanian capital gains tax is payable on that gain, irrespective of whether you are resident in Jordan or living abroad. Verify the current position with the Income and Sales Tax Department (ISTD) before completing any sale.

Are there annual property taxes in Jordan?

Jordan imposes an annual property tax commonly referred to as Musqafat (also written as Al-Musqafat). This is a government-introduced levy on the real estate sector that targets owners of one or more properties, including residential and commercial buildings, factories, land, and showrooms. Property owners are obliged to pay it once each year.

Who administers it? The revenue collected is directed to the Greater Amman Municipality within the capital province and to local municipalities elsewhere in the country. The applicable tax rate is determined by the relevant municipality and varies according to the property’s location and size.

How is it calculated? For buildings, Musqafat is calculated by reference to the property’s annual rental value. The standard rate is 15% of the estimated annual rental value as assessed by the tax authorities. Reassessment of this notional rental value takes place every five years. This methodology — applying a fixed percentage to an estimated rental income rather than to capital value — bears some resemblance to how certain French municipalities compute the taxe foncière using a notional lettings value.

Who pays? Musqafat is the exclusive responsibility of property owners; tenants are not liable. It applies to both resident and non-resident owners of property in Jordan.

Payment deadlines and penalties: The tax falls due at the beginning of each fiscal year. Failure to pay within the fiscal year results in a surcharge of 10% of the outstanding amount, which can rise progressively to as much as 50% of the overdue tax for sustained non-payment. Owners who settle the full amount within the first six months of the fiscal year are entitled to a discount.

Typical annual bill: For a mid-range Amman apartment with an estimated annual rental value of JOD 3,600 (equivalent to JOD 300 per month), the annual Musqafat charge would be approximately JOD 540 (15% of JOD 3,600) — a modest figure by international standards. Actual assessments differ from property to property and should be confirmed with the Greater Amman Municipality or the appropriate local authority. Owners can look up the tax due on their buildings and land through the Greater Amman Municipality’s online portal.

How is rental income from property taxed in Jordan?

Rental income earned from property in Jordan is treated as taxable income and falls under the national income tax framework, administered by the Income and Sales Tax Department (ISTD). Income taxes on rentals from leased properties form part of Jordan’s broader real estate tax obligations.

Who is liable? All income arising in or from Jordan is subject to Jordanian tax for any person, regardless of where payment is received. This means that both resident and non-resident landlords are liable for Jordanian income tax on rental income generated from property located within the country.

Tax rates: Income tax is applied progressively. The lowest rate is 5% on the first JOD 5,000 of taxable income, with rates rising to a maximum of 30%. Rental income is aggregated with other Jordanian-source income to determine the applicable tax band. A landlord whose sole Jordanian income derives from a modest rental yield will typically find themselves taxed at the lower end of this scale.

Deductible expenses: Jordanian law generally permits the deduction of genuine business expenses incurred in producing taxable income. For property owners, this can include maintenance costs, property management charges, and insurance premiums. A flat deduction of JOD 1,000 is available to resident individuals in respect of expenses related to medical treatment, education, rent, and mortgage interest on housing. Speak to the ISTD or a local tax adviser for specific guidance on expenses allowable against rental income.

Filing obligations: Rental income must be declared through an annual income tax return. Individuals are required to file by 30 April, while companies face a 30 June deadline, each in respect of the preceding tax year. Non-residents receiving rental income should ensure they are registered with the ISTD and meeting their annual filing obligations.

Short-term rentals (Airbnb and similar platforms): Jordan has not yet established a dedicated regulatory framework specifically covering short-term holiday letting platforms such as Airbnb. Income generated from such arrangements is nonetheless taxable under the same rules as conventional rental income. Whether or not platforms withhold tax at source, landlords should declare this income themselves. It is advisable to check with the ISTD for the latest guidance on reporting short-term rental receipts, as this remains a developing area of practice.

Does inheritance tax apply to property in Jordan?

Jordan’s Income Tax Law contains no provisions for inheritance, estate, or gift taxes. When a property owner passes away and their estate is transferred to heirs, no inheritance or estate tax arises under Jordanian national law — a notable advantage when compared with many European countries or the United States, where such taxes can account for a significant share of a property’s value.

Transfer on death and Islamic inheritance principles: Property passing by way of inheritance or lease is governed by civil law alongside Islamic inheritance principles. For Muslim nationals, Jordan applies the rules of Islamic inheritance law (Fara’id), which prescribes fixed entitlements for specified categories of relatives. Different considerations may apply to non-Muslim residents, and foreign nationals should seek specialist legal advice on how their home country’s succession laws interact with the Jordanian legal framework.

Transfer fees on inherited property: Although Jordan levies no inheritance tax, registering inherited property at the DLS does attract administrative fees. Transfers by way of inheritance are almost entirely exempted from transfer fees — a considerably lighter burden than in many other countries, where even the administrative registration of inherited assets can prove costly.

Double taxation treaties: Income covered by double taxation agreements (DTAs) that Jordan has concluded with other governments is exempt to the extent provided under those agreements. However, since Jordan imposes no inheritance tax, the DTA most pertinent to a foreign heir will usually be the one applicable in their home country — especially if that country taxes worldwide assets as part of its estate or inheritance tax regime. Professional advice from qualified advisers in both jurisdictions is recommended before inheriting property in Jordan.

Does gift tax apply to property transfers in Jordan?

Jordan’s Income Tax Law makes no provision for inheritance, estate, or gift taxes. Transferring property as a gift to another person — whether a close relative or an unrelated third party — does not attract a separate gift tax charge at the national level. This sets Jordan apart from countries such as France, which operates a droits de donation regime, or the United States, which maintains a federal gift tax framework.

Transfer fees on gifted property: Although gift tax does not exist, any gifting of property still requires formal registration at the DLS, and transfer fees are payable. Gifts between first-degree relatives benefit from a full or substantial exemption from these fees. For gifts between more distant relatives or between unrelated parties, the standard transfer fee rates apply — generally 6% of the administrative value as of 2025. Always confirm the current fee schedule with the DLS before proceeding with a gift transfer.

Relationship-based exemptions: Partial or full exemptions from transfer fees are available in many circumstances, particularly for property passing between family members — whether through inheritance or lifetime gift. The closer the family relationship, the greater the likely fee reduction. As a general principle, gifts from parent to child typically attract minimal fees, gifts to siblings or cousins may attract a partial charge, and gifts to unrelated persons are subject to the full standard rate.

If you are considering gifting property to a family member, it is strongly advisable to obtain written confirmation of the applicable rate from the DLS before executing the transfer, as the classification of family relationships and the scope of available exemptions can involve nuance and complexity.

Are there any tax advantages or incentives for buying property in Jordan?

Jordan offers a range of incentives and reliefs relevant to property purchasers and investors, most notably for first-time buyers and those committing capital to designated development areas.

First-time buyer relief: Where the buyer is purchasing property for the first time, the transfer fee on an apartment is set at 4.5% of the administrative price for the first 150 m², in place of the standard 3% applicable to repeat buyers on the same band. For larger properties or those that would otherwise attract the full 6% rate, qualifying as a first-time buyer can still yield meaningful savings. Confirm the criteria for first-time buyer status with the DLS before proceeding.

Investment Promotion Law: The Investment Promotion Law grants eligible investors in certain sectors a tax exemption of up to 75% for a period of ten years. Those investing in development zones or qualifying industries may benefit from significant reductions or full exemptions. The Jordan Investment Commission (JIC) is the principal body responsible for administering these incentive packages.

Aqaba Special Economic Zone (ASEZ): A zero rate of sales tax applies within the Aqaba Special Economic Zone (ASEZ). Property transactions conducted within the ASEZ may attract reduced tax rates and fees as part of a broader incentive structure designed to draw foreign direct investment to the region. Buyers considering property in Aqaba should investigate the ASEZ framework specifically before committing.

No capital gains tax: As outlined above, the absence of capital gains tax on property disposals for private individuals is itself a considerable structural benefit — particularly for long-term investors and buy-to-let landlords. Removing this cost, which can substantially diminish investment returns in other markets, makes Jordan an appealing destination for property investment.

No wealth tax: Jordan does not operate a net wealth or net worth tax of any kind. Owning multiple properties attracts no additional levy based on total asset values, making Jordan a straightforward environment for portfolio landlords compared with countries that impose annual taxes on accumulated net assets.

Do different rules apply to foreign buyers or non-residents purchasing property in Jordan?

Foreign nationals are permitted to purchase property in Jordan, but additional procedural requirements apply. While certain types of real estate can be acquired by non-Jordanians with appropriate authorisation, restrictions on land ownership exist and must be understood before committing to a purchase.

Ministry of Interior approval: Non-Jordanian buyers must obtain approval from the Ministry of Interior before a property purchase can be completed. This process typically takes approximately 30 days. This requirement has no equivalent in many other countries’ transaction processes and must be built into your anticipated timeline. Approval is generally granted for residential purchases in designated areas.

Legal framework for foreign ownership: The global trend towards liberalising foreign ownership regulations in order to attract overseas investment and stimulate economic activity has influenced Jordan’s approach in recent years. The specific rules governing what non-nationals may acquire vary depending on property type — residential versus agricultural — location, and the buyer’s nationality. Citizens of Arab League member states may benefit from more permissive rules than buyers from non-Arab countries. Always check the current position with the DLS or a locally qualified lawyer before entering into any commitment.

Tax treatment of non-residents: Both residents and non-residents are taxed only on income sourced within Jordan. Non-resident buyers face no additional surcharge on transfer fees or annual property taxes simply because of their foreign status. Musqafat is levied equally on all property owners regardless of nationality or place of residence.

Compliance obligations for non-residents: Non-resident landlords who derive rental income from Jordanian property must register with the ISTD and submit annual income tax returns. Non-residents selling property should also be mindful that their country of residence may tax any capital gain realised, even though Jordan itself does not. Companies owning property in Jordan are subject to Jordanian laws and regulations, and disputes relating to that property fall within the jurisdiction of Jordanian courts.

Powers of attorney: For non-residents who are unable to travel to Jordan for the registration process, a notarised power of attorney is an accepted mechanism. Physical attendance by the owner is not a requirement — it is sufficient to authorise a representative through a properly authenticated power of attorney. Ensuring that the document is correctly drafted and legally authenticated is essential, and independent legal advice is strongly recommended for non-resident buyers.

Frequently asked questions

What is the administrative value, and how does it affect how much I pay in transfer fees?

The administrative value is the government’s official assessed value of a property, as determined by the Department of Lands and Survey. In desirable areas of Amman, this figure is frequently lower than the price agreed between buyer and seller. Because transfer fees are calculated on the administrative value rather than the actual sale price, the amount you pay may be less than you initially anticipate. Check the administrative value with the DLS before contracts are exchanged.

Do I need to pay any taxes in Jordan if I sell a property I inherited?

In the vast majority of cases, no. Capital gains arising from private property sales are exempt for individuals under Jordanian law, and no inheritance tax exists in Jordan. You may incur modest administrative fees when registering the inherited title in your name at the DLS, but these are low — and for immediate family members, they are close to nil. Verify the current fee schedule with the DLS, and consult the tax authority in your country of residence regarding any obligations that may arise there.

Is rental income from a property I own in Jordan taxable if I live abroad?

Yes. Any income originating from within Jordan is subject to Jordanian income tax, irrespective of the recipient’s country of residence. As a non-resident landlord, you are required to register with the Income and Sales Tax Department (ISTD) and file annual tax returns. Progressive income tax rates apply, ranging from 5% to 30%. Seek guidance from the ISTD or a Jordanian tax adviser regarding your individual circumstances.

Are there any restrictions on what type of property a foreign national can buy in Jordan?

In general, foreign nationals may purchase residential apartments and built properties in Jordan, but restrictions exist in relation to agricultural land and certain geographic areas. Ministry of Interior approval is a prerequisite for all non-Jordanian purchases and typically takes around 30 days to obtain. The rules also differ according to the buyer’s nationality. Always verify the current requirements with the Department of Lands and Survey or a qualified local lawyer before making any commitment to purchase.

How and when do I pay the annual Musqafat property tax?

Musqafat becomes due at the start of each fiscal year. For properties within Amman, payment can be made through the Greater Amman Municipality’s website or via the e-Fawateercom platform. Owners who pay within the first six months of the fiscal year may qualify for a discount. Payments made after the fiscal year-end attract a 10% surcharge, which can escalate to up to 50% for prolonged non-payment. If your property lies outside Amman, contact the relevant local municipality for details of the payment process.

Does Jordan have any double taxation treaties relevant to property?

Jordan has entered into double taxation agreements (DTAs) with a number of other countries. Because Jordan does not levy capital gains tax on property sales or inheritance tax, the DTA provisions most relevant to property owners typically concern rental income and the treatment of that income in the country of residence. Review the ISTD’s published list of agreements and seek advice from a tax specialist in both Jordan and your country of residence to fully understand your combined exposure.

Do I need a Jordanian lawyer to buy property in Jordan?

Although it is technically feasible to proceed without legal representation, engaging a qualified Jordanian lawyer is strongly advisable, especially for foreign buyers. A lawyer can carry out title searches, draft or scrutinise the sale agreement, manage the DLS registration process, and advise on the permits required for non-Jordanian purchasers. If you are unable to be present in Jordan in person, a properly authenticated notarised power of attorney enables a lawyer or other trusted representative to act on your behalf throughout the transaction.

Can I deduct mortgage interest from my rental income for tax purposes in Jordan?

Jordan’s income tax legislation generally permits the deduction of genuine business expenses incurred in producing taxable income. Whether mortgage interest on a property held for rental purposes qualifies as a deductible expense will depend on the specific facts of your situation and the way in which the financing is structured. Consult the Income and Sales Tax Department (ISTD) or a locally qualified tax adviser for authoritative guidance, bearing in mind that the rules in this area can be nuanced and may be subject to change.