Jordan: Guide to Buying Costs and Procedures
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Total transaction costs are moderate to high in Jordan
How high are realtors’ and lawyers’ fees in the Jordan? What about other property purchase costs?
Transaction Costs |
||
| Who Pays? | ||
| Stamp Duty | 0.6% | buyer |
| Transfer Duty | 6% 4% |
buyer seller |
| Real Estate Agent's Fee | 2% (+ 16% GST) 2% (+ 16% GST) |
buyer seller |
| Costs paid by buyer | 8.92% | |
| Costs paid by seller | 6.32% | |
| ROUNDTRIP TRANSACTION COSTS | 15.24% | |
| See Footnotes Source: Global Property Guide |
||
How difficult is the property purchase process in Jordan?
Foreigners are allowed to buy property in Jordan, provided Jordan and the buyer’s country of residence have a reciprocal relationship, and that the approval of the Cabinet (Council of Ministers) is obtained. Foreigners can only sell the property five years from acquisition. Most properties for rent and for sale can be found in Amman, Jordan’s capital city.
A real estate agent is needed when purchasing property in Jordan. However, legal and other procedures needed for the transaction can be done without the services of a lawyer.
While prior approval from the Cabinet is needed, there are other Government agencies involved in the registration of the property. These authorities are: the Lands and Surveys Department and/or the Minister of Finance.
An official sale form is available from the Lands and Surveys Department. This is acquired together with the cadastral map and certificate of ownership. A Tax Clearance is also obtained from the Ministry of Finance.
The registration fee of 10% (unequally shared by the buyer and the seller) is paid to transfer ownership of the title after closing the transaction.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Currency:
Jordan uses the Jordanian Dinar (JOD) . The exchange rate as of 14 Nov 2007: US$1 = JOD 0.71330. Property value is US$250,000, approximately JOD 180,000 (178,325).
Location:
Amman.
Stamp Duty:
A 0.6% stamp duty is imposed on sales contracts. It must be paid within one month after the conclusion of the contract. For late paymets, there is a fine equal to three times the amount of duty payable.
Transfer Tax:
For property transfers, the government imposes a 10% tax, 4% paid by the seller and 6% by the buyer.
Real Estate Broker Fee:
Brokerage fees are typically 2% (plus 16% sales tax) paid by both buyer and seller.
Jordan - more data and information
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Your Comments
posted by Raja M. Seikaly | 2008-01-22
Milano Restaurant owner / manager, Amman, Jordan
Since April, 2005 the price of real estate and apartments had almost increased 3 folds. Jordan has excellent security and the economic growth is very promising. The privatiztion of all sectors is very rapid too. The real estate market will keep increasing at a good pace, especially with high a population growth of some 3.5% annually. A high percentage of Jordanians working in the rich-oil gulf countries, they continously transfer a good part of their income back into their homeland.Finally, it takes a simple look at the Middle Eastern map to find out that Jordan is located in the heart of the Middle East. Most of the population is literate and speak English as a second language. The country is very proud to have unique historic and religious sites and the tourist industry is ever increasing.