A Guide to Renting and Buying Real Estate for Foreigners in Amman

Jordan is an investment destination that attracts investors from all over the world, due to its diverse opportunities. This is why we see many foreigners making long-term investment plans in Jordan, particularly in Amman.

In this guide, we will review the laws, procedures, and requirements for foreigners wishing to invest in Amman, as well as potential challenges and legal advice, whether they are looking to invest in residential or commercial properties.

Can Foreigners Own Property in Jordan?

Yes, foreigners can own real estate in Jordan, but they must meet certain conditions depending on the type of property and the purpose of the purchase. In general, Jordan encourages foreigners to purchase and invest in real estate

Legal Requirements for Foreign Buyers and Renters

There are several legal conditions and requirements that must be met for foreigners to own real estate in Jordan:

1. Individuals

• Obtaining Cabinet approval is required by submitting a property ownership application to the Department of Lands and Survey, which typically takes 30 days.

• The residential land area must be at least 250 square meters.

• Ownership must be for personal residence or investment purposes. Renting or selling the property is prohibited for five years.

• A sales contract must be signed between the seller and buyer, including all details (property area, price, and terms).

• A deposit, typically ranging from 10% to 20%, must be paid to ensure the transaction is completed.

• Register the property with the Department of Lands and Survey to ensure clear legal ownership, and pay registration fees and taxes, which typically range from 5-10% of the property value.

2.Companies​

• ​The company must be officially registered in Jordan.
• Submit an official application through the Ministry of Finance for real estate investment purposes.
• The property's location, area, and intended use must be specified.

Types of Real Estate That Foreigners Can Invest in 

• ​Residential properties, including apartments and villas, for personal use or rental.
• Commercial properties, including offices, shops, and hotels, require additional approval from the relevant authorities depending on the type of business activity.
• Lands for the purpose of developing real estate projects, which must be completed within four years from the date of purchase.

Best Areas in Amman for Expats and Foreign Investors

Choosing the areas of investment depends on several factors that must be taken into consideration, including:

• The purpose of the investment, whether for trade, industry, or even future residential purposes.
• Infrastructure and ease of access to commercial facilities.
• Market demand for the areas in which the investment is intended.
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Industrial and Commercial Investment

1. Free Zones: Such as the Sahab or the Airport Free Zone, which offer an attractive investment environment with tax incentives and exemptions.
2. Airport Road: Airport Road boasts a promising investment environment for commercial and residential projects.

Residential Investment

1. Abdoun: Abdoun is a quiet, upscale area known for its diplomatic headquarters, ideal for luxury real estate investment.
2. Deir Ghbar: Deir Ghbar is one of Amman's most upscale areas, offering a peaceful residential environment with excellent infrastructure.
3. Sweifieh: Sweifieh is known for its proximity to shopping centers and services, providing a good residential environment.
4. Khalda: Khalda is a family-friendly residential environment due to its proximity to international schools and shopping centers.
   

Legal Considerations When Investing in Jordan for Foreigners

​To ensure a smooth and easy investment process, there are a few things to consider:

1. Ownership Restrictions: Foreigners are not allowed to own more than one property without special approval. There are also restrictions on ownership in border and military areas.
2. Taxes and Fees: Property registration fees are 5% of the property value, while the annual property tax depends on the location and type of property.
3. Obtaining Residency Through Investment: Foreigners who own property in Jordan can apply for residency under certain conditions, the most important of which is that the property must be worth at least 20,000 Jordanian dinars to qualify for residency.

Required Documents for Property Ownership in Jordan

-A copy of your passport or ID.

-A preliminary sales contract.

-A site map of the property.

-A land plan and building area.

-A Land Department report.

-A security clearance (for foreigners).

Legal Tips for Investing in Amman

It is recommended to consult a real estate attorney to ensure a problem-free investment. The attorney's role includes:

-Reviewing legal contracts and the validity of property registration.
-Ensuring that the property is free of any mortgages or legal issues.
-Following up on procedures with official authorities.
-Providing advice related to ownership to foreigners and companies.

FAQs

1. Can foreigners buy real estate in Jordan?

Yes, foreigners can own real estate in Jordan provided they meet legal requirements, such as obtaining Cabinet approval and officially registering the property.

2. What are the requirements for foreigners to own residential real estate?

The land area must be at least 250 square meters, and the property must not be sold or rented for five years from the date of ownership.

3. What are the best areas in Amman for real estate investment for foreigners?

Abdoun, Deir Ghbar, Sweifieh, and Khalda are considered prominent upscale residential areas, while Airport Road and the free zones are suitable for commercial and industrial investment.

4. Does foreign property ownership grant residency in Jordan?

Yes, it is possible to apply for residency if the property is valued at 20,000 Jordanian dinars or more, subject to certain conditions.

5. What are the most important documents required to register real estate in a foreigner's name?

The most important documents required are: a passport, a preliminary sales contract, a site map, a land plot plan, a Land Department report, and a security clearance.