Incorporate.ltd
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Jordan

Mena
الأردن

20% (standard); reduced rates in Aqaba SEZ

Corporate Tax

1–3 weeks

Setup Time

JOD 1 (LLC) / JOD 50,000 (Public Shareholding)

Min. Capital

100% (most sectors; some restrictions in services and trading)

Foreign Ownership

#75

Ease of Business

Best Answer

Jordan offers a well-educated, cost-effective workforce and strategic location at the crossroads of the Levant, GCC, and North Africa. The standout feature is the Aqaba Special Economic Zone (ASEZA) — offering 5% flat income tax, 0% customs duties, and 7% GST (vs 20% CT and 16% GST on the mainland). Jordan has free trade agreements with the US (Qualified Industrial Zones allow duty-free exports), the EU, and Arab states, making it an excellent export and outsourcing hub. The standard 20% corporate tax rate and 16% GST make mainland Jordan less tax-competitive than GCC states, but labour costs are a fraction of UAE or Saudi levels. For tech companies, BPOs, and manufacturers wanting a skilled Arabic-English bilingual workforce with preferential trade access, Jordan is a strong choice — especially if structured through Aqaba.

Who this is for
  • Technology companies and startups leveraging Jordan's skilled developer talent pool
  • BPO and shared services centres seeking cost-effective, English-proficient staff
  • Manufacturers exporting to the US via Qualified Industrial Zones (duty-free access)
  • Companies wanting Aqaba SEZ benefits — 5% income tax, 0% customs duties
  • Businesses needing a Levant regional hub with access to Iraq, Saudi Arabia, and the Palestinian market
Key Caution

Jordan's mainland tax burden (20% CT + 16% GST) is significantly higher than GCC alternatives. Unless you are leveraging the Aqaba SEZ or QIZ trade preferences, the tax savings do not favour Jordan over UAE, Bahrain, or Saudi Arabia. Foreign ownership restrictions still apply in certain service and retail sectors — verify your specific activity before assuming 100% ownership is available. Energy costs are high (Jordan imports ~90% of its energy), which affects manufacturing and data centre operations.

At a Glance

CurrencyJOD (د.ا)
Official LanguagesArabic
Legal SystemCivil law (French-influenced) with Sharia elements in personal status
Fiscal YearJanuary – December
Double Tax Treaties36
MembershipsWTO, UN, Arab League, Greater Arab Free Trade Area, EU Association Agreement

Available Business Structures

Cost Snapshot

Cost Breakdown (USD)
Formation Cost
JOD 500 – 3,000 ($700 – $4,200)
Annual Compliance
JOD 1,500 – 8,000 ($2,100 – $11,300)
Office Space
JOD 2,400 – 18,000/year ($3,400 – $25,400)

Tax Overview

Tax Snapshot
Corporate Tax
20% (standard); reduced rates in Aqaba SEZ
VAT / GST
16%

Banking Reality Check

Ease of opening:

Timeline: 2–4 weeks after registration

Jordan's banking sector is regulated by the Central Bank of Jordan (CBJ) and is well-developed relative to the country's size. Major banks include Arab Bank, Housing Bank for Trade and Finance, and Jordan Ahli Bank. Corporate account opening requires the Certificate of Registration, MOA, vocational licence, passport copies, and a business description. In-person visits are typically required for at least one signatory. Jordan's banks are accustomed to serving foreign-owned companies and are generally cooperative, though KYC processes have tightened in line with FATF standards.

Visa & Immigration

Entrepreneur Visa
Digital Nomad Visa
Golden Visa

Jordan does not offer a formal golden visa, entrepreneur visa, or digital nomad visa programme. Foreign investors and company shareholders can obtain residency permits through their Jordanian entity via the Ministry of Interior. Work permits for expatriate employees are issued by the Ministry of Labour and require proof that the position cannot be filled by a Jordanian national. Tourist visas are available on arrival for many nationalities. The Jordan Pass combines visa fees with tourist site entry — useful for business visitors wanting to extend their stay.

Free Zones & SEZs

7 free zones available

Aqaba Special Economic Zone (ASEZA)
Qualified Industrial Zones (QIZs)
Jordan Free Zones Corporation zones (Zarqa, Sahab, Karak, etc.)

Common Mistakes

Incorporating on the mainland when Aqaba SEZ would have been significantly cheaper

Fix: If your business does not require a physical Amman presence, seriously evaluate the Aqaba SEZ — 5% income tax vs 20%, 7% GST vs 16%, and 0% customs duties. Many tech and services companies operate from Aqaba with staff or clients elsewhere in Jordan.

Assuming 100% foreign ownership is available for all activity types

Fix: While most sectors allow 100% foreign ownership, some service activities (e.g., certain construction, engineering, and trading categories) cap foreign ownership at 50%. Check the specific activity classification with the Companies Control Department before incorporation.

Overlooking the 16% GST and its cash flow impact

Fix: Jordan's 16% GST is high by regional standards. Budget for the compliance cost and the cash flow impact of collecting and remitting GST. Registration is mandatory once annual taxable supplies exceed JOD 30,000.

Not leveraging the US-Jordan FTA and QIZ programme for exports

Fix: Jordan is one of the few countries with a free trade agreement with the US, and Qualified Industrial Zones allow duty-free exports to the US market. If you are manufacturing for export, structure your operations to take advantage of these preferential trade terms.

Frequently Asked Questions

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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.