Jordan Inheritance & Gift Tax Guide 2026
Jordan does not impose inheritance tax, estate tax, or gift tax. The transfer of wealth upon death is governed by the Jordanian Civil Code and Sharia inheritance principles, which provide for the distribution of estates to legal heirs. The only costs involved in transferring assets to beneficiaries are property registration fees when transferring real estate titles. Lifetime gifts between individuals are also tax-free.
No Inheritance Tax
Jordan is one of many jurisdictions that does not levy an inheritance tax or estate tax. When a person dies, their estate passes to heirs without any tax liability to the estate or to individual beneficiaries. There is no filing requirement, no exemption threshold, and no tax return related to inheritance. This makes Jordan a favourable jurisdiction for wealth transfer from a tax perspective.
No Gift Tax
Jordan does not impose a gift tax on transfers made during the donor's lifetime. Gifts of cash, property, shares, or other assets are not subject to any tax in the hands of either the donor or the recipient. There are no annual gift exemptions, thresholds, or reporting requirements. However, gifts of income-generating assets subject the recipient to income tax on the income derived after the gift.
Succession Law
Inheritance in Jordan is governed by a combination of the Jordanian Civil Code and Sharia law. For Muslim Jordanians, inheritance is determined by fixed shares under Sharia law as codified in the Law of Personal Status. For non-Muslims, the Civil Code governs succession, allowing freedom of testation subject to reserved shares for certain heirs. Key provisions include fixed shares for spouses, children, and parents, and the requirement to obtain a certificate of inheritance from the Sharia Court (for Muslims) or the Civil Court (for non-Muslims) before assets can be transferred to heirs.
Property Transfer Upon Inheritance
When real estate is transferred to heirs upon death, the following costs apply:
- Land registration fees: Approximately 1–2% of the property value for title transfer
- Court fees: For the certificate of inheritance, typically JOD 50–300 depending on the estate value
- Legal fees: Typically 1–2% of the estate value for the succession lawyer
No Step-Up in Cost Basis
Jordan does not provide a step-up in cost basis for inherited assets. When an heir sells an inherited asset, the cost basis for calculating CGT is the original purchase price paid by the deceased, not the fair market value at the date of death. Heirs may face a CGT liability upon sale reflecting the entire appreciation from the original purchase through the date of sale.
FAQs
Do I need to file a tax return for inherited assets?
No, the inheritance itself is not taxable and requires no tax filing. However, if inherited assets generate income (rent, dividends), that income must be declared in the heir's annual tax return.
Can I make a will under Jordanian law?
Yes, Jordanian law recognises wills. Muslims may dispose of up to one-third of their estate by will to non-heirs; the remaining two-thirds are distributed according to Sharia fixed shares. Non-Muslims have broader testamentary freedom under the Civil Code.
Are transfers between spouses subject to tax?
No, transfers between spouses (whether by gift, inheritance, or divorce settlement) are not subject to income tax, CGT, or gift tax. Registration fees still apply to property transfers.
Disclaimer
This guide provides general information about Jordanian inheritance and gift tax rules for the 2026 tax year. Tax laws and succession rules may vary. Always consult with a qualified Jordanian legal advisor or the Income and Sales Tax Department for advice specific to your situation. InvestmentKit does not provide legal or tax advice.