Jordan’s real estate market has attracted global interest in recent years, thanks to its strategic location, stable economic climate, and rich history. For foreign investors, the question often arises: can non-Jordanians legally own property in Jordan? The answer is yes, but certain conditions and types of ownership apply. This article explores the laws regarding foreign property ownership in Jordan, the types of ownership permitted, and what international investors should know before purchasing property in the country.
Overview of Property Ownership Laws for Foreigners in Jordan
The government of Jordan allows foreign individuals and companies to purchase property within the country. However, the legal framework governing foreign ownership includes a few restrictions aimed at protecting Jordan’s national interest. These laws are primarily overseen by the Jordanian Ministry of Interior and the Greater Amman Municipality.
Foreign ownership regulations vary based on the type of property, the location of the property, and the applicant’s nationality. Generally, the approval process involves securing permission from the Ministry of Interior and the municipality where the property is located. While the process can take some time, it is structured to promote secure investments for foreign nationals.
Types of Property Ownership Available to Foreigners in Jordan
Foreign investors in Jordan can own different types of property, including residential and commercial properties. However, each type of property comes with specific regulations and conditions for foreign buyers.
1. Full Ownership of Residential Property
Foreign nationals can own residential property in Jordan under full ownership rights, meaning they have the same rights as Jordanian citizens over their property. This includes apartments, houses, and residential plots. However, there are a few key requirements for foreigners looking to purchase residential properties:
- Approval from the Ministry of Interior: Foreign buyers must secure approval from the Ministry of Interior to own residential property in Jordan. This process ensures that the purchase aligns with local regulations and national security considerations.
- Duration of Ownership: Generally, foreign owners have the right to retain ownership as long as they abide by Jordanian laws. There are no strict limitations on the length of ownership, but any property not developed within five years may face a revocation of ownership rights.
- Location Restrictions: Although foreign investors can own property in most regions, certain areas near the borders may have additional restrictions due to security concerns.
2. Long-Term Lease Agreements
Another popular option for foreign investors in Jordan is long-term lease agreements. In this arrangement, foreigners can lease property for an extended period, typically ranging from 25 to 99 years. Long-term leases offer many of the benefits of ownership without some of the regulatory requirements. Foreigners who choose this option gain full rights to use the property, develop it, and sublease it if permitted by the lease agreement.
Long-term leases are particularly common for commercial properties and large-scale developments where foreign companies wish to operate without permanent ownership. Leasing is generally faster and requires less government oversight than outright purchase, making it an attractive choice for many international companies.
3. Commercial Property Ownership for Business Use
Foreigners can also own commercial properties in Jordan, such as office spaces, retail stores, and industrial facilities. The process for acquiring commercial property is similar to that for residential ownership, requiring approval from the Ministry of Interior. However, there may be additional zoning regulations depending on the property’s intended use.
Commercial property ownership is attractive for foreign businesses looking to establish a long-term presence in Jordan. With the government’s focus on foreign investment, there are initiatives and incentives for international companies to invest in commercial properties that contribute to the country’s economic growth.
4. Agricultural and Rural Land Ownership
Ownership of agricultural land and rural properties is more restricted for foreigners in Jordan. Due to national security concerns, the government places limitations on foreign ownership of large agricultural and rural lands. However, foreigners can still purchase smaller plots or obtain long-term leases for agricultural use, subject to approval from relevant authorities.
In most cases, if a foreign investor wishes to own agricultural land for farming, they must partner with a local entity to satisfy ownership requirements. This ensures that agricultural land is used responsibly and remains productive, aligning with Jordan’s food security goals.
Key Requirements and Approval Process for Foreign Property Ownership
The process for purchasing property in Jordan as a foreign national involves several steps, and it’s essential to be aware of the specific requirements to avoid delays:
- Approval from Relevant Authorities: Foreign buyers must apply for approval through the Ministry of Interior. The application includes details of the buyer’s nationality, financial background, and the intended use of the property. Approval can take up to a few months, but it is a standard procedure to ensure legal compliance.
- Property Registration and Documentation: Once approval is obtained, foreign buyers must register their property with the Department of Lands and Survey. This registration secures the buyer’s ownership rights and provides a legal document of ownership. The process is generally straightforward, but it’s advisable to consult a local lawyer familiar with Jordanian real estate law.
- Compliance with Local Zoning Laws: Depending on the type of property and its location, foreign investors may need to adhere to zoning regulations. For instance, commercial properties in certain zones may require additional permits for development or business operations.
- Taxes and Fees: Foreign property owners in Jordan are subject to taxes and fees similar to those paid by Jordanian citizens. Property tax rates vary depending on the property’s type and location, and foreign buyers should be prepared for these costs when making an investment.
Benefits of Property Ownership for Foreigners in Jordan
Owning property in Jordan offers many advantages for foreign investors, including the opportunity to capitalize on a growing real estate market. Some of the benefits of foreign property ownership in Jordan include:
- Strategic Location: Jordan’s position as a hub in the Middle East makes it an attractive location for international businesses and investors.
- Stable Investment Climate: Jordan has a relatively stable political and economic environment compared to other countries in the region, making it a secure choice for long-term investment.
- Growing Real Estate Market: Jordan’s real estate sector has shown steady growth over the years, with increasing demand for both residential and commercial properties. This growth presents a profitable opportunity for foreign investors.
- Diverse Ownership Options: With options for full ownership, long-term leases, and commercial property ownership, foreign investors have various choices based on their needs and investment goals.
Final Thoughts
In summary, foreigners can legally own property in Jordan under several forms of ownership, including full ownership of residential and commercial properties, long-term leases, and restricted agricultural land ownership. While the approval process for foreign property ownership may require time and documentation, the benefits of investing in Jordan’s real estate market can make it a rewarding endeavor.
For foreign investors seeking a stable, strategically located, and economically secure environment, Jordan offers promising opportunities in property ownership. As with any real estate investment, careful planning, and knowledge of local regulations are essential to ensure a successful transaction.
M. Rami Maki,
Business Consultant