Jordan
Jordan allows 100% foreign ownership with 20% standard CIT. Aqaba SEZ offers 0% income tax and 5% GST.
Foreign Ownership Eligibility
Jordan welcomes 100% foreign-owned companies
A physical visit is required at some point during the formation process.
- 100% foreign ownership permitted in most sectors — no mandatory local Jordanian partner for standard LLC registration
- Some professional services (legal, notary) require Jordanian citizenship — verify sector restrictions with CCD or JIC
- Minimum paid-up capital is nominally JOD 1,000; practical requirements for some foreign trading activities may be higher
- Aqaba SEZ (ASEZ) offers 0% income tax and 5% GST for export, manufacturing, and logistics businesses
- QIZ designation enables duty-free US market access for products with minimum Israeli-origin content
- Social Security contributions mandatory before first employee can be hired: 14.25% employer + 7.5% employee
- Effective CIT rate is 21% for general companies (20% CIT + 1% national contribution tax surcharge) — not 20% as commonly stated
Ownership
100% Foreign OK
Formation
Visit Required
Note
In-person attendance by authorised signatories is required to open a corporate bank account in Jordan. No Jordanian bank currently offers remote corporate account opening for foreign-owned companies. Plan for a physical visit to Amman or arrange a local authorised representative with notarised power of attorney. Bank account opening typically adds 2–4 weeks to the overall setup timeline.
Tax at a glance
Jordan Tax Overview
20%
Standard corporate income tax (general companies)
All companies not in a higher-rate sector; PwC reviewed February 2026
21%
Effective rate for general companies
20% CIT + 1% national contribution tax surcharge = 21% effective combined rate
35%
CIT for banks
Commercial banks; plus 3% national contribution tax = 38% effective rate
24%
CIT for telecoms, insurance, finance, electricity, and mining
Applies to telecommunications, insurance, financial intermediation, currency exchange, finance leasing, electricity generation/distribution, and raw material mining
0%
Aqaba Special Economic Zone (ASEZ) income tax
Companies operating within ASEZ are generally exempt from income tax; national contribution tax may still apply — confirm with ASEZA
16%
General Sales Tax (GST) — standard rate
Jordan's GST applies to goods and services nationally. Not a standard VAT — sector carve-outs and exemptions apply
5%
GST rate within the Aqaba SEZ (ASEZ)
Reduced GST rate applies to goods and services within the Aqaba Special Economic Zone
0.3–0.6%
Stamp duty on contracts
Applied to all types of contracts at time of signing. Source: PwC Jordan Other Taxes (February 2026)
5 years
Loss carryforward period
Losses assessed after January 1, 2015 may be carried forward for up to 5 years. No carryback permitted. Source: PwC Jordan Deductions (February 2026)
4 months
Annual CIT return filing deadline
Return due end of the 4th month following year-end (e.g. April 30 for calendar-year companies). Late penalty: 0.4% of tax due per week of delay
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership in most sectors: Jordan permits full foreign ownership under its investment laws, with no mandatory local Jordanian partner requirement for standard LLC registrations — a significant structural advantage over Gulf neighbours requiring local sponsorship.
Aqaba Special Economic Zone (ASEZ): Jordan's only seaport offers 0% income tax, 5% GST (vs. 16% nationally), 100% foreign ownership, and streamlined customs — a genuine free zone alternative for export-oriented, manufacturing, and logistics businesses.
US–Jordan Free Trade Agreement (JUSFTA): Jordan-based companies can export goods to the US market under preferential tariff terms — one of only two full FTAs the US has signed with Arab countries. Products manufactured in Jordan receive duty-free access to the world's largest consumer market.
Qualified Industrial Zones (QIZs): Products manufactured in Jordan incorporating a minimum Israeli-origin input can enter the US market duty-free under the QIZ protocol — a unique manufacturing incentive that exists nowhere else in the world.
EU Euro-Mediterranean Association Agreement: Jordan-based companies benefit from preferential market access to EU member states under the Euromed Agreement, making Jordan a potential manufacturing and export hub for European-destined goods.
Arab Free Trade Area (GAFTA): Jordan is a member of the Greater Arab Free Trade Area, enabling preferential trade with Arab League member states — a combined market of approximately 420 million people.
Three active FTAs from one entity: Jordan has preferential access to the US (JUSFTA), EU (Euromed), and Arab world (GAFTA) from a single legal entity — no other jurisdiction in the region combines all three.
Educated, English-speaking workforce: Jordan produces graduates in IT, engineering, and medicine with high English proficiency. Amman has an active technology sector with salary costs significantly below Gulf states.
Development zones with reduced tax rates: Jordan designates specific development zones for qualifying industrial and service businesses, with reduced CIT rates for eligible activities and sectors.
Relatively low operational costs: Office rents and professional salaries in Amman are more competitive than Gulf states, reducing the ongoing cost base for services and technology businesses.
Considerations
High sectoral CIT rates: Banks pay 35% CIT; telecommunications, insurance, finance, and electricity companies pay 24%. These are significantly above the general 20% rate and make Jordan costly for businesses in these sectors.
National contribution tax adds to the burden: The 1% national contribution tax surcharge means the effective rate for general companies is 21% — not 20%. For banks it is 38%, for mining companies 27%. Competitor guides that quote only the base CIT rate are understating the actual tax cost.
GST complexity: Jordan's General Sales Tax (GST) system is not a standard VAT and applies differently to goods and services. The 16% standard rate is significant. The Aqaba SEZ applies a lower 5% rate, creating different compliance requirements for ASEZ vs. mainland operations.
Limited domestic market: Jordan's population of approximately 10.5 million has limited aggregate consumer purchasing power — Jordan's value proposition is as a regional export platform, not a domestic consumption market.
Regional instability risk: Jordan borders Syria, Iraq, and the Palestinian territories. Jordan itself is politically stable, but geographic proximity to active conflict zones is an ongoing business risk for supply chains, personnel, and investor sentiment.
No foreign tax credit mechanism: Jordan's income tax law does not provide a foreign tax credit for taxes paid in other jurisdictions. Source: PwC Jordan Tax Incentives (February 2026).
Loss carryforward capped at 5 years: Shorter than many competing jurisdictions; losses assessed after January 1, 2015 may be carried forward for up to 5 years only.
Stamp duty on contracts: 0.3%–0.6% stamp duty on all contracts adds transactional costs. Source: PwC Jordan Other Taxes (February 2026).
Bank KYC stringency: Jordan's banking sector applies thorough due diligence. Account opening for foreign-owned companies requires in-person attendance and can take several weeks, particularly for entities with non-Jordanian beneficial owners.
Property restrictions: Foreign ownership of real estate is restricted in some areas of Jordan, including areas near borders. This limits real estate-linked investment structures outside designated zones.
Structural Comparison
LLC (Limited Liability Company)
Branch Office
Aqaba Special Economic Zone (ASEZ) Company
Representative / Liaison Office
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to determine the right structure: mainland LLC (for Amman-based services or technology), Aqaba SEZ company (for export, manufacturing, or logistics), or a QIZ operation (for US duty-free manufacturing). Sector-specific tax rates and restrictions reviewed at this stage.
Reserve and approve your company name via the Companies Control Directorate (CCD) online portal. Name availability is confirmed immediately; the CCD e-Services system enables online reservation.
Engage an Amman-licensed lawyer to draft the Memorandum and Articles of Association. For foreign shareholders, notarise and apostille documents from the home country.
Notarise formation documents with a licensed Jordanian notary public. Foreign company documents (for branch or subsidiary registration) require legalisation.
Register the company with the CCD via the Sijil Al-Tijarah (Commercial Register) — available online through the CCD e-Services portal. Certificate of Registration is issued within 2–5 business days for online submissions.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
The national contribution tax surcharge of 1% (general companies) or 3% (banks) is frequently omitted from competitor guides. Quoting only the base 20% CIT rate understates the true effective rate by 1–3 percentage points depending on sector. Factor the combined 21% effective rate into all financial models. For banks and financial services, the 35–38% effective rate makes Jordan a high-cost jurisdiction for those sectors.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Jordan setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Jordan. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Arab Bank | Local commercial | Low (Visit Required) | Largest bank in Jordan and one of the most established pan-Arab financial institutions. Strong regional and international correspondent network. In-person KYC/AML attendance required for corporate account opening. Preferred by larger foreign-owned operations. |
| Jordan Ahli Bank | Local commercial | Low (Visit Required) | Full-service commercial bank with a broad Jordanian branch network. Active trade finance desk. In-person visit required; enhanced due diligence for foreign-owned entities. |
| Bank of Jordan | Local commercial | Low (Visit Required) | Well-established Jordanian bank serving corporate and retail clients. Corporate account opening requires in-person attendance and full KYC documentation including beneficial ownership details. |
| Cairo Amman Bank | Local commercial | Low (Visit Required) | Strong retail and commercial presence across Jordan. Responsive to SME and mid-market clients. In-person KYC required for new corporate accounts. |
| Housing Bank for Trade and Finance | Local commercial | Low (Visit Required) | One of Jordan's largest banks by assets. Active in trade finance and project finance. In-person attendance required for corporate account opening. |
| Citibank Jordan | International | Low (Visit Required) | Institutional and corporate banking for large MNCs with existing global Citi relationships. Not suited to smaller or newly incorporated entities. Thorough AML/KYC review; in-person attendance required. |
Frequently Asked
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