Oman Property Purchase FAQ

Can foreigners buy property in Oman?

Yes, foreign nationals can purchase freehold property within designated Integrated Tourism Complexes (ITCs) such as Al Mouj Muscat, Muscat Bay, Jebel Sifah, and Hawana Salalah. Outside ITCs, foreigners can obtain usufruct rights of up to 99 years on land and buildings.

What is an Integrated Tourism Complex (ITC)?

ITCs are government-approved mixed-use developments that combine residential properties with tourism and leisure facilities. They are the only areas where foreign nationals can own freehold property. ITCs typically include hotels, restaurants, marinas, golf courses, and retail facilities alongside residential units.

Do property buyers get a residence visa?

Yes, purchasing property in a designated ITC above a minimum value threshold (typically OMR 45,000 or above) grants the buyer and immediate family members eligibility for a renewable Oman residence visa. This visa does not confer the right to work without a separate work permit.

What is a usufruct right?

A usufruct right grants the holder the right to use and benefit from property (including building on it) for a specified period of up to 99 years. The usufruct can be sold, inherited, or mortgaged. It is registered with the Ministry of Housing and Urban Planning.

What are the typical property prices?

Property prices vary significantly by location. In Muscat ITCs, apartments range from OMR 50,000 to OMR 250,000, and villas from OMR 150,000 to OMR 1 million or more. Salalah ITC properties are generally 20 to 40 percent less expensive than Muscat equivalents.

Are mortgages available for foreigners?

Some Omani banks offer mortgage financing to foreign nationals for ITC property purchases, typically covering 60 to 70 percent of the property value with repayment terms of 15 to 25 years. Interest rates and terms vary by bank and applicant profile.

What are the transaction costs?

Property transaction costs include a registration fee of 3 percent of the property value paid to the government, real estate agent commission of typically 2 percent, and legal fees. There is no stamp duty or capital gains tax on property transactions.

Is there property tax in Oman?

Oman does not levy an annual property tax or council tax on residential or commercial properties. This makes property ownership more affordable compared to many other jurisdictions. Municipal fees for services are generally minimal.

Can foreigners rent out their property?

Yes, property owners including foreigners can rent out their properties. Rental income is subject to corporate tax if earned through a company structure. The rental market in Muscat is active with yields typically ranging from 6 to 8 percent for well-located residential properties.

How is property ownership registered?

Property ownership is registered with the Ministry of Housing and Urban Planning. The registration system provides legal certainty and protection for property rights. Title deeds are issued to owners and usufruct agreements are formally recorded.