Why Is Long-Term Residency Important for Investors in Jordan?
For investors, obtaining long-term residency in Jordan provides several advantages. It offers a stable legal framework for conducting business, allows greater access to various government services, and provides more flexibility in terms of living and working in the country. Foreign investors who plan to establish businesses or have a significant presence in Jordan often prefer the stability and rights that come with long-term residency. Additionally, the ability to stay in the country without needing to frequently renew short-term visas is a major benefit for entrepreneurs and business owners.
Types of Long-Term Residency Options for Foreign Investors in Jordan
Jordan offers several pathways to long-term residency for investors. These pathways are designed to facilitate business development while ensuring that investors meet certain criteria, contributing to the economic growth of the country. The primary options include:
1. Investment Residency Permit
One of the most common avenues for foreign investors to obtain long-term residency is through an investment residency permit. This permit is granted to investors who meet specific financial and business criteria established by the Jordanian government. It is particularly advantageous for those looking to establish or operate a business in the country.
Key Requirements for Investment Residency:
- Investment Size: The investor must make a significant financial commitment to the Jordanian economy. The minimum investment amount varies depending on the sector and the type of business, but in general, it requires an investment of at least JD 100,000 (Jordanian Dinar), which is approximately $140,000 USD, in a business or property.
- Business Activity: The business must be legally registered in Jordan and actively engaged in commerce. Investors are required to submit a business plan, and their venture must be deemed beneficial to the Jordanian economy in terms of job creation, technology transfer, or industry development.
- Employment of Jordanians: As part of the investment residency permit, investors are typically required to hire a certain percentage of local employees. This helps to promote the growth of the Jordanian job market and economy.
- Duration of Stay: The residency permit is usually valid for an initial period of one year, with the option to renew for additional years, provided that the business remains operational and meets all regulatory requirements.
2. Property Investment Residency
Foreign investors who purchase property in Jordan may also be eligible for long-term residency through the property investment program. This program is particularly attractive for those who wish to invest in real estate as part of their business strategy.
Key Requirements for Property Investment Residency:
- Property Value: To qualify for residency through property investment, the property must meet a minimum value requirement, typically around JD 200,000 (approximately $280,000 USD). The property must be located within designated areas and should be intended for personal use or rental purposes.
- Ownership Structure: Investors must own the property outright, and the property must be registered in the name of the investor. Mortgages or leased properties do not qualify for this program.
- Stay Duration: Once granted, this type of residency allows the investor and their immediate family (spouse and children) to reside in Jordan for an extended period, typically renewable every few years.
3. Investor Visa for Long-Term Stay
Jordan also offers an investor visa, which is a more straightforward option for those who wish to remain in Jordan for extended periods without necessarily establishing a large-scale business or making a significant property investment.
Key Requirements for an Investor Visa:
- Minimum Investment: The investor visa typically requires a minimum investment of JD 50,000 (around $70,000 USD) in a business or real estate. This can be in the form of either a registered company or an investment in property.
- Active Participation: The investor must be actively involved in the business or property operation. Passive investments that do not contribute to the local economy may not qualify.
- Duration of Stay: The visa is generally valid for a period of one year and can be renewed based on the continued operation of the business or property and compliance with the conditions outlined in the visa.
4. Special Economic Zones (SEZ) Residency
Jordan has several Special Economic Zones (SEZs) that offer specific benefits for foreign investors, including tax incentives and relaxed regulatory processes. Investors who establish businesses in these zones may qualify for long-term residency.
Key Benefits of SEZ Residency:
- Tax Exemptions: Businesses operating in SEZs often enjoy tax exemptions or reduced rates, which can significantly improve the profitability of a venture.
- Long-Term Residency Options: Investors in SEZs may be eligible for long-term residency permits, making it easier to reside and manage businesses within these zones.
- Infrastructure Support: SEZs in Jordan are equipped with advanced infrastructure, including logistics hubs, access to ports, and dedicated facilities for industries such as manufacturing, technology, and logistics.
Benefits of Long-Term Residency for Investors in Jordan
Obtaining long-term residency as an investor in Jordan offers several advantages, including:
- Stability and Security: Long-term residency provides a stable legal status, allowing investors to stay in the country without the need for constant visa renewals. This gives investors peace of mind when it comes to their business operations and personal lives.
- Access to Business Incentives: Many of the residency options, especially those related to investment and SEZs, offer tax incentives, reduced fees, and other benefits designed to attract foreign capital.
- Family Residency: Long-term residency is typically extended to the investor’s immediate family, including spouses and children, which facilitates the relocation process for families.
- Easy Access to the Middle East Market: As a member of several free trade agreements, including those with the U.S., EU, and Arab countries, Jordan offers foreign investors access to a larger regional and international market, which can be leveraged for business expansion.
How to Apply for Long-Term Residency in Jordan
The application process for long-term residency varies depending on the type of residency the investor is applying for. However, the general process involves:
- Document Submission: Investors will need to provide relevant documents, including proof of investment, business registration, financial statements, and other documents related to the type of residency being applied for.
- Approval Process: The application will be reviewed by the relevant government authorities, which may include the Ministry of Interior, Ministry of Investment, and other regulatory bodies.
- Renewal and Compliance: Investors must comply with ongoing requirements, such as maintaining their business operations and adhering to employment and tax laws, in order to renew their residency status.
Conclusion
For foreign investors looking to establish a presence in Jordan, obtaining long-term residency is an important step in ensuring the smooth operation and growth of their business. With multiple residency options available, including investment-based residency, property investment, and special economic zone programs, Jordan offers a variety of pathways to secure long-term stay. By meeting the requirements and taking advantage of the benefits associated with long-term residency, investors can enjoy stability, favorable business conditions, and access to regional markets.
M. Rami Maki
Business Consultant