Will the Era of Property Ownership End in Jordan? The 2025 Buildings and Lands Tax Law

More than 71 years have passed since the enactment of the effective Law of Buildings and Lands Tax within municipal areas of 1954. Today, we are witnessing a major wave of controversy and objections surrounding a new draft law intended to replace the old one. The pressing question remains: Would these amendments have sparked such outrage if they were in favor of the citizen?

Why the 2025 Draft Law on Buildings and Lands Tax Was Adopted

This draft has stirred wide debate among the Jordanian public. However, the government considers the new draft law on buildings and lands tax a necessary step to keep up with urban and organizational developments, as the current law was enacted in 1954. Government sources emphasized that the new law will not impose additional financial burdens on citizens and that government procedures will become more citizen-friendly.

Homes Jordan's team explored the various reasons behind the government's decision to adopt the 2025 draft law on buildings and lands tax, which include:

Integrating real estate into a fully digital system that minimizes errors in property appraisal.
Replacing human estimation with electronic property tax calculation.
Introducing an automated formula based on the administrative price approved by the Department of Lands and Survey.
Expanding financial collection through faster digital and technological tools.
Replacing paper notifications with digital ones to ensure they reach all citizens, including expatriates, especially in the case of vacant lands, rented buildings, and absentee owners.
Considering the condition of the property, market trends, location, or any related data, such as whether the property is inhabited, income-generating, or inherited.

From Field Inspection to Electronic Assessment: The Core Mechanism of the New Law

The amendment of the buildings and lands tax law aims to keep pace with digital advancements by integrating real estate into an electronic system that replaces the field committee, and by eliminating paper notifications in favor of digital ones.

The new mechanism adopted in the new buildings and lands law is based entirely on electronic automation for the real estate appraisal system. This aims to provide better e-services to citizens and expatriates by linking all digital systems involved in the valuation process and maintaining comprehensive and regularly updated data.

Sources in the Greater Amman Municipality stated that the new law offers several benefits to both citizens and expatriates, such as:

Unifying databases between the Greater Amman Municipality, local municipalities, and the Department of Lands and Survey.
Electronic notification to taxpayers regarding the appraisal process.
Transparency and clarity in appraisal methods, and unified objection mechanisms to achieve full transparency and allow for self-assessment by the taxpayer or investor.
Ability to determine the shares of owners in jointly owned properties based on the registration deed and the appraised value for each partner individually.
Right to object to the appraisal, regardless of the change or decrease percentage.
Increasing the vacant property exemption to 60% of the total tax instead of 50% of the buildings tax only.
Increasing the incentive discount rate to 10% of the total tax instead of 8% of the buildings tax.
Eliminating the uniform appraisal procedures across all regions as was the case under the old law.
Using rental value in the evaluation process.

The Text of the Buildings and Lands Tax Law

To keep up with urban and regulatory developments within the jurisdictions of municipalities, the Greater Amman Municipality, the Aqaba Special Economic Zone Authority, and the Petra Development and Tourism Region Authority, and to incorporate electronic means in property appraisal, tax collection, and objection procedures.

To achieve fairness among taxpayers in assessing lands and buildings by adopting the appraisal value of the land in addition to the building, based on the nature of the area, location, type of zoning, imposed restrictions, and market value.

To expand incentives granted to taxpayers in line with municipal work development, including linking them to parking availability, green buildings, preservation of heritage buildings, and encouraging the use of vacant lands for commercial and industrial zoning in industrial cities and renewable energy projects.

To facilitate appraisal procedures and ensure clarity for taxpayers, enabling them to view, object to, and appeal appraisal decisions.

Annual Property Tax Rates and How They're Calculated

A Government Measure!

The Department of Lands and Survey conducted a trial survey on 14,000 samples from various sectors based on the new tax formula in the draft law. Results showed no new financial tax impact.

Article (12) of the draft law stipulates the following annual tax rates on properties:

1% of the estimated value for residential buildings.
3% of the estimated value for non-residential buildings.
0.2% of the estimated value for lands over 1,000m². (i.e., 0.0002 rate)
0.4% of the estimated value for lands under 1,000m². (i.e., 0.0004 rate)

How are the estimated values calculated?

Estimated value of land = Land area × Allowed building percentage × Administrative price

Estimated value of building = Building area × Price per square meter × 20% (occupancy rate)

Example:

Residential apartment:

Old law tax for a 176m² apartment in a category "A" residential zone: 126 JOD
New law tax: 124 JOD

Empty residential apartment:

Old law tax for a 150m² empty apartment in a category "A" residential zone: 192 JOD
New law tax: 146 JOD

Owner Shares in Joint Properties

The law allows determining each owner's share in joint properties based on the registration deed and individual appraisal value. It also helps unify databases between the Greater Amman Municipality, local municipalities, and the Department of Lands and Survey, reducing subjective appraisal by relying on accurate digital technologies and declared estimation rates.

Parliament’s Vote on the New Buildings and Lands Tax Law

The House of Representatives is expected to finalize voting on the draft law once approved by the relevant committee, before the end of the current session, which lasts for six months starting from November 18.

Where Does Homes Jordan Stand Regarding the Buildings and Lands Tax Law?

Homes Jordan has several partnerships with the Department of Lands and Survey and is continuously updated on new laws and strategies related to real estate affairs. This reflects in their legal consultancy department, which regularly updates its operational procedures in line with the Department’s amendments.

Likewise, Homes Jordan follows a series of legal and engineering procedures before listing any property, verifying the property’s identity with the Department of Lands and Survey, ensuring it is free from legal issues such as mortgages, inheritance complications, or ownership disputes.

Known as the largest real estate agency, Homes Jordan boasts an extensive listing of villas, mansions, and luxurious apartments. They not only publish ads for sale, purchase, and rental properties but also provide legal and engineering consultation to clients, whether they are property owners or seekers.

You can explore their properties through the following links:

Properties for Sale in Amman
Properties for Rent in Amman

Also, explore their latest blog articles:

Jordan’s Real Estate Market
Invalid Real Estate Contracts
Real Estate Disputes in Jordan
Pre-emption in Jordanian Law
Real Estate Appraisal

The New Tax Law – And the Other Opinion

Despite the government’s stated reasons for passing the new buildings and lands tax law, there's always a national perspective that views things from different angles, raising concerns about how the law may affect citizens in unintended ways:

The new law might not take into account actual "market conditions" or the rental contract values, or even the real financial benefits property owners get from their land or buildings.
Someone who owns multiple properties, or inherits land in a newly zoned area, might face tax bills far exceeding their annual income.
Accumulated tax bills, late fees, and interest penalties could pose a significant burden.
The replacement of human appraisal committees with digital systems may not fully account for specific property characteristics.

Homes Jordan made a strong effort to explain the 2025 Buildings and Lands Tax Law in detail with examples, while acknowledging the varying views between the government and the public. Now, we await the results of the parliamentary vote to see whether this draft law will be enacted or if the old law will remain in place.

To discover the latest property listings, feel free to contact the Homes Jordan team at: +962791230777. Remember, Homes Jordan constantly updates its real estate listings—so don’t hesitate to visit their website and social media channels.

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