Jordan Property Tax Guide 2026
Jordan imposes several taxes and fees on property ownership and transfer. The property transfer process includes registration fees and stamp duty totalling approximately 8-10% of the property value. Annual property taxes of approximately 0.5-1% of the assessed value are levied by municipal authorities. Capital gains tax of 5-10% applies to gains on property sales. Rental income is taxed as ordinary income under IIT. There is no annual wealth tax on property ownership.
Property Transfer — Registration & Stamp Duty (8-10%)
When property (land or buildings) is purchased or transferred, the following fees and taxes apply:
- Land registration fee: Approximately 5-6% of the property value (paid by the buyer)
- Stamp duty: Approximately 3-4% of the property value (paid by the buyer)
- Total transfer costs: 8-10% of the property value, which is relatively high by regional standards
These fees are payable to the Department of Lands and Survey before the transfer can be registered. The declared value in the transfer instrument is used as the tax base. ISTD may challenge the declared value if it is below market value.
Annual Property Tax — ~0.5-1%
An annual property tax is levied by municipal authorities on all properties within their jurisdiction. The rate is approximately 0.5-1% of the assessed value of the property. The assessed value is determined by municipal valuation committees and is often below market value. The tax is payable annually to the municipality where the property is located. Exemptions apply for government-owned property, religious institutions, and diplomatic missions.
Capital Gains Tax on Property
Capital gains from the sale of property are subject to CGT at a sliding scale of 5-10% depending on the holding period (see the capital gains guide for full details). The gain is calculated as the sale price minus the acquisition cost and allowable improvements. Primary residence transfers may be exempt if the proceeds are reinvested in another primary residence.
No Annual Wealth Tax on Property
Jordan does not have an annual net wealth tax or any tax based on the total value of an individual's property holdings. Municipal property tax is based on the value of individual properties for local services, not an aggregated wealth assessment.
Rental Income — IIT
Rental income from residential and commercial property is taxed as ordinary income under IIT at progressive rates (5–30%). Landlords may deduct allowable expenses including mortgage interest, maintenance, insurance, and municipal property tax. Rental income received from tenants must be declared in the annual tax return by 30 April.
FAQs
Do I have to pay tax when I sell my primary residence?
Primary residence transfers may be exempt from CGT if the sale proceeds are reinvested in another primary residence within 2 years. Otherwise, CGT at the applicable rate applies.
How is property value assessed for transfer fees?
Transfer fees are based on the declared value in the sale contract. ISTD may reject the declared value if it is below market value and require a valuation report.
Are non-residents taxed differently on Jordanian property?
Non-residents are subject to the same transfer fees, annual property tax, and CGT rates as residents on Jordanian property.
Disclaimer
This guide provides general information about Jordanian property-related taxation for the 2026 tax year. Tax laws, municipal rates, and regulations 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.