Jordan Capital Gains Tax Guide 2026

CGT on ASE-Listed Shares — 0% (Over 1 Year)

Capital gains realised from the sale of shares listed on the Amman Stock Exchange (ASE) are exempt from capital gains tax if the shares have been held for more than one year. This exemption is designed to encourage long-term investment in Jordan's capital markets. Gains on ASE shares held for less than one year may be subject to CGT at standard rates, though gains from speculative trading are generally treated as business income. The exemption applies to both resident and non-resident investors in ASE-listed securities.

CGT on Unlisted Shares — 15%

Gains from the transfer of shares in private (unlisted) companies are subject to capital gains tax at a rate of 15%. The gain is calculated as the difference between the sale price and the acquisition cost. Transfer of shares in land-rich companies may be treated as a property transfer for CGT purposes. Valuation by ISTD may be required for non-arm's length transactions between related parties.

CGT on Property — 5–10% Sliding Scale

Capital gains on property transfers are subject to a sliding scale based on the holding period and property type. The general rates are:

• 5% — on gains from property held for more than 5 years
• 8% — on gains from property held for 3–5 years
• 10% — on gains from property held for less than 3 years

Primary residence transfers may be exempt from CGT if the proceeds are reinvested in another primary residence within 2 years. Agricultural land may also qualify for reduced rates.

Calculation of Gain

The capital gain is calculated as the transfer value minus the acquisition cost plus allowable improvements and incidental costs. No indexation is available to adjust the cost base for inflation. Losses on capital assets may be offset only against capital gains in the same year; unused losses generally cannot be carried forward.

Filing and Payment

The CGT return must be filed via the ISTD online portal within 30 days of the transfer date. Payment is due on filing. The transferor is primarily responsible for the tax. Late filing attracts penalties and interest on unpaid amounts.

FAQs

Is CGT payable on inherited property when the heir sells it?

Yes, when the heir sells inherited property, CGT is payable on the gain calculated from the original owner's cost basis (no step-up in basis).

Do non-residents pay CGT on Jordanian property?

Yes, non-residents are subject to CGT on gains from the transfer of assets located in Jordan at the same rates as residents.

How is CGT on shares in private companies calculated?

The gain is the difference between the sale price and the acquisition cost. Valuation by ISTD may be required for non-arm's length transactions.

Disclaimer

This guide provides general information about Jordanian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Jordanian tax advisor or the Income and Sales Tax Department for advice specific to your situation. InvestmentKit does not provide tax advice.