Oman – Buying Property

Can foreign nationals legally buy and own property in Oman?

Yes — foreign nationals are legally entitled to purchase real estate in Oman, although the main avenue has traditionally been through government-designated areas known as Integrated Tourism Complexes (ITCs) and Special Economic Zones (SEZs). This sets Oman’s market apart from fully open destinations such as Portugal or Dubai, where foreigners may buy across a broader range of designated zones, while making it more accessible than countries like Saudi Arabia, which have historically maintained stricter constraints on foreign land acquisition.

Regulatory reforms have continued to broaden the scope of foreign property ownership in Oman. As of 2025, overseas buyers may acquire real estate both within and outside ITCs, with the exception of specific restricted areas defined under Royal Decree. This represents a meaningful shift and reflects Oman’s drive to attract international capital as part of its Vision 2040 economic diversification agenda.

Ownership within ITCs grants foreigners complete freehold title. Holding property in an ITC also entitles the investor and their immediate family to apply for a property-linked residency permit — one of the most compelling incentives for non-Omani investors. This compares favourably with markets such as Thailand, where foreigners can only hold freehold title over apartment units rather than land.

Omani property law distinguishes between two principal forms of ownership: freehold and usufruct. Freehold confers permanent ownership with full rights over the property and the underlying land. Usufruct permits the holder to use and derive benefit from a property for a defined period — up to 99 years — without owning the land itself. Since 2020, expatriates resident in Oman for a minimum of two years (and aged 23 or above) may also apply for usufruct rights in certain residential buildings in Muscat.

GCC nationals — from the UAE, Saudi Arabia, Qatar, Kuwait, and Bahrain — enjoy more extensive ownership rights and may purchase property outside ITCs across most of Oman. However, some areas such as Al Batinah Coast and Al Gabal remain off-limits even for GCC buyers. Agricultural land and properties in restricted zones including Musandam, Buraimi, and areas in proximity to military installations or heritage sites are unavailable to foreign purchasers.

Where undeveloped land is purchased, foreign buyers have four years within which to complete construction. This timeframe may be extended by the Ministry of Housing and Urban Planning (MOHUP) where circumstances warrant.

Foreign buyers must register their property with the Ministry of Housing and Urban Planning (MoHUP) to obtain a valid title deed. This registration process requires a valid passport, evidence of lawful entry, and in some cases documentation confirming the source of funds. The authoritative body for all title and ownership enquiries is the Ministry of Housing and Urban Planning (MoHUP).

Regulations introduced in April 2025 allow full ownership for non-Omani individuals in Special Economic Zones, building on earlier provisions specific to Integrated Tourism Complexes. Given the ongoing evolution of the rules, buyers should always confirm the current legal position directly with MoHUP or a qualified Omani lawyer before proceeding.

What are average property prices in Oman, and how do they vary by region?

As of September 2025, Oman’s real estate market presents attractive opportunities for investors and homebuyers alike, with average prices spanning from OMR 600 per square metre in more affordable locations to OMR 1,200 per square metre in the most sought-after parts of Muscat. These figures remain considerably more competitive than equivalent properties in Dubai or Abu Dhabi, positioning Oman as an accessible entry point within the Gulf region.

The most prestigious districts of Muscat command the upper end of the price spectrum, ranging from OMR 1,000 to OMR 1,200 per square metre (approximately USD 2,080–2,600). These premium zones include Al Mouj, the Diplomatic Area, and Madinat Al Sultan Qaboos, where waterfront residences and branded developments achieve the highest valuations.

The national median for apartments sits at approximately OMR 1,841 per square metre (OMR 171 per square foot), while houses and villas average OMR 1,528 per square metre (OMR 142 per square foot).

More affordable locations across Oman — including Sohar, Nizwa, and Salalah — offer lower price points, typically ranging from OMR 600 to OMR 1,000 per square metre. These areas are well suited to first-time purchasers and investors seeking a more modest market entry.

Apartment prices in Muscat range from OMR 30,000 to OMR 60,000 for mid-market units, while villas start from around OMR 80,000. At the top of the market, luxury waterfront villas and premium ITC properties can command several hundred thousand OMR.

Property prices are subject to change, and the figures above should be treated as indicative. Always cross-check current listings on established portals such as Property Oman and consult the National Centre for Statistics and Information (NCSI) real estate price index at ncsi.gov.om for the most up-to-date official data.

Where are the most popular locations to buy property in Oman?

Muscat accounted for 47.35% of total transaction value in 2025, reinforcing its position as the administrative and financial epicentre of Oman’s residential real estate market. The Greater Muscat Plan integrates public transport with density hubs to keep commute times within 30 minutes — a quality-of-life indicator that continues to sustain buyer appetite.

Al Mouj Muscat stands out as a flagship waterfront destination, combining refined residences with a world-class marina, an 18-hole golf course, boutique retail, and an exclusive private beach club. It is Oman’s premier ITC development and consistently draws strong international buyer interest from those seeking a lifestyle-oriented investment with residency benefits.

Muscat Hills is celebrated for its elevated villas featuring panoramic views, environmentally conscious design, and leisure facilities including tennis courts, swimming pools, and scenic walking paths. It appeals to buyers who value a quieter, nature-oriented setting without sacrificing easy access to the capital’s amenities.

ITCs are concentrated in economically and touristically significant areas such as the capital Muscat, Salalah, and other prime visitor destinations. Salalah’s real estate market is on a trajectory of steady price appreciation, driven largely by surging tourism. In 2024, the city welcomed more than one million tourists between June and August — an increase of 8.7% on the prior year — a trend widely expected to continue.

Integrated tourism complexes such as Hawana Salalah blend residential and hospitality offerings, fuelling demand for short-term rentals and holiday homes. Salalah’s pronounced seasonal appeal during the Khareef (monsoon) period from June to September generates strong short-let demand, making it particularly attractive for buy-to-let investors.

As of September 2025, the most keenly sought properties are waterfront apartments in Al Mouj Muscat and luxury villas in Muscat Hills, both of which offer investment potential combined with residency eligibility.

Are there any emerging or up-and-coming areas worth considering in Oman?

The Oman National Spatial Strategy 2040 is driving westward urban expansion from Muscat into areas including Al Mabellah and Sultan Haitham City, giving rise to new residential and commercial centres. Sultan Haitham City in particular represents a major planned urban development intended to absorb population growth and relieve pressure on central Muscat, making it one of the most significant new investment zones in the country.

The Batinah region is also gaining traction as a property hotspot, buoyed by improved transport connectivity. Land values in North Al Batinah appreciated by 18.8% as industrial expansion spilled over into housing demand — making it one of the stronger-performing regional markets in recent data cycles.

Logistics real estate is experiencing rapid growth, particularly around Sohar, where industrial zones underpin e-commerce and manufacturing activity. As a burgeoning industrial hub, Sohar is attracting an increasing number of workers and professionals, which is gradually strengthening residential rental and resale prospects over the longer term.

Districts such as Al Ghubra and Airport Heights in Muscat are evolving into business-oriented neighbourhoods, with growing demand for both residential and commercial space — particularly among professionals employed in the capital’s expanding non-oil sector.

New ITC projects are anticipated in well-connected Muscat suburbs including Al Azaiba and Al Amerat. These emerging zones are worth tracking for buyers who wish to enter earlier in the development cycle, though off-plan purchases in newer areas carry heightened risk and demand more thorough due diligence.

What are the current trends in the property market in Oman?

Oman’s real estate price index recorded a 17.3% rise in the third quarter of 2025 relative to the same period in 2024, according to official data published by the National Centre for Statistics and Information (NCSI). The residential real estate price index in Q3 2025 climbed 18.7% year-on-year, representing a strong recovery from a period of softer performance in 2023–2024.

The most pronounced price movement was observed in the apartment segment — apartment values across Oman surged 22.4% year-on-year by Q3 2025. Villa prices increased by 16.5% compared to Q3 2024. This divergence indicates that apartments, historically the more volatile segment, are now leading the market’s upswing.

Foreign purchase transactions climbed 19.4% year-on-year in 2024, signalling growing international confidence following regulatory changes that widened the areas available to overseas buyers. The digital real estate registry “Amlak” processed 133,000 transfers in 2024, halving paperwork processing times — a notable improvement in transactional efficiency.

In 2025, prevailing property trends in Oman centre on technologically integrated, energy-efficient villas, larger family homes in suburban settings, properties featuring generous outdoor areas, and eco-conscious buildings — all of which are driving demand and upward price pressure. Sustainable construction is gaining ground, spurred by global environmental consciousness and growing local appetite for energy-efficient homes. Developers are embedding smart automation systems into projects such as Hay Al Naseem.

A defining feature of the current market is the proliferation of mixed-use developments that weave together residential, commercial, and retail components within a single precinct. These schemes offer residents the convenience of living, working, and shopping in close proximity. The model is especially prevalent in new ITC developments aimed at international purchasers.

For the most current market data, refer to the NCSI real estate price index at ncsi.gov.om, which publishes quarterly price index reports drawing on data supplied by MoHUP.

Is buying property in Oman a good investment?

Oman’s residential real estate market is valued at USD 5.29 billion in 2026 and is expanding at a compound annual growth rate of 6.74%, with projections pointing to USD 7.34 billion by 2031. This trajectory indicates a market with solid medium-term momentum, underpinned by government infrastructure spending and economic diversification initiatives.

Rental yields in premium locations such as Al Mouj average 6–8%, although oversupply in certain segments has softened rents by 10–15% for apartments and 15–25% for villas over the past 18 months. A gross yield of 6–8% compares favourably with prime residential markets in Western Europe, where net yields frequently fall below 4%, though investors should account for management costs and potential vacancy periods.

Buy-to-let investors from neighbouring GCC economies remain active, drawn by tax-free rental income and gross yields of 5–8%. Oman imposes no property taxes, capital gains taxes, or inheritance taxes, which materially reduces the total cost of ownership. These factors together make net returns more attractive than headline gross yield figures alone suggest.

The five-year trajectory since 2020 tells a story of dramatic value recovery. Property prices have appreciated approximately 60% from their pandemic-era lows, representing one of the most impressive rebounds in the Gulf region. This resurgence reflects Oman’s economic diversification efforts, sustained infrastructure investment, and favourable policies toward foreign investors.

Property types and neighbourhoods that have historically held value most reliably during downturns include prime ITC developments such as Al Mouj Muscat, waterfront villas with marina access, and conveniently located apartments serving the expatriate professional community — all of which benefit from consistent rental demand even when buyer activity wanes.

Oil continues to fund close to 65% of fiscal revenues, so government housing programmes are sensitive to Brent price movements. While non-hydrocarbon GDP advanced 3.7% in 2024, any prolonged decline in crude prices could reduce infrastructure spending and dampen buyer sentiment. Currency risk is also a consideration: properties are priced in Omani Rials (OMR), which requires conversion from foreign currencies and can affect the effective purchase price and rental returns over time. The OMR is pegged to the US dollar, which provides a degree of stability, but does not eliminate exchange rate exposure for buyers holding other currencies.

Property investment always carries risk. Historical price growth provides no assurance of future performance, and market conditions can shift. Independent financial advice from a qualified adviser is strongly recommended before committing to any purchase.

What types of property are commonly available to buy in Oman?

Oman’s property market encompasses residential apartments, villas, commercial offices, retail premises, and hospitality-oriented developments. For foreign buyers specifically, available inventory is concentrated within ITC and SEZ developments, which tend to occupy the premium end of the market.

Apartments are the most widely available entry-level option within ITCs. Many overseas buyers opt for apartments or villas within Integrated Tourism Complexes. These typically comprise studio, one-, two-, and three-bedroom units within professionally managed complexes offering shared pools, gyms, and concierge services.

Villas and townhouses are prevalent at the upper end of the market. Muscat Hills, for instance, is known for its elevated villas offering sweeping views, eco-conscious design, and recreational amenities. Villa developments within ITCs frequently feature standalone and semi-detached configurations set within gated communities with landscaped grounds.

Off-plan properties — units purchased before or during the construction phase — account for a considerable proportion of new-build sales. While completed properties offer immediate occupation, off-plan developments may represent better value but demand patience and careful planning. Escrow account protections are mandatory for all off-plan transactions.

Mixed-use and resort properties are common within tourist-focused ITCs such as Hawana Salalah. These combine residential ownership with hotel-managed rental programmes, enabling owners to generate income during periods when they are not in residence.

Land plots within ITCs may also be acquired for self-build purposes, but foreign buyers have four years from the date of purchase to complete construction. This period may be extended by the Ministry of Housing and Urban Planning where circumstances justify it.

Agricultural land and rural properties fall outside the scope of foreign purchasing rights. Restrictions on foreign ownership apply to land in rural and agricultural areas.

What is the typical step-by-step process for buying property in Oman?

The complete process typically takes 2–3 months from identifying a property to receiving the title deed. Unlike buying in countries such as the UK — where solicitor exchanges of contract create a legally binding agreement — or Australia, where cooling-off periods are governed by state legislation, the Omani process is more streamlined but places considerable reliance on bilingual documentation and ministerial approval steps. The following is a step-by-step guide:

1. Research and shortlist properties. Identify properties within approved ITCs or SEZs. Confirm that the development holds official ITC designation from MoHUP before paying any fees. Use licensed agents and established property portals.
2. Engage a qualified Omani lawyer. Instructing a real estate lawyer before signing anything is essential. Your lawyer will review contracts, verify documentation, and protect your interests throughout the transaction.
3. Sign a reservation agreement and pay a deposit. Sign a reservation agreement that includes refundable deposit protection, securing the unit while due diligence is carried out.
4. Conduct full due diligence. Carry out title verification via the Ministry of Housing and Urban Planning (MoHUP) and arrange a structural inspection. The most important document to request is the current title deed, which confirms the registered owner, property boundaries, any encumbrances, and whether the unit falls within an approved ITC for foreign ownership.
5. Obtain a No-Objection Certificate (NOC). Secure a No-Objection Certificate from the relevant government authority. This confirms that the property sits within an approved zone and that the buyer meets foreign ownership eligibility criteria.
6. Sign the Sale and Purchase Agreement (SPA). Prepare a bilingual Sale and Purchase Agreement in English and Arabic, covering the agreed price, payment schedule, and completion conditions. Have your lawyer review it before signing.
7. Transfer funds. Transfer funds in accordance with the agreed payment terms. Escrow accounts are mandatory for off-plan purchases. Never transfer funds to a personal account without verified documentation and appropriate escrow or legal oversight.
8. Register the property with MoHUP. Complete property registration at the Real Estate Registration Department, where title is formally transferred into the buyer’s name. The registration fee is approximately 3% of the purchase price, payable when the sales agreement is submitted to the Land Registration Department. (As of 2025; verify current rates with MoHUP or your lawyer.)

If you minimise costs by purchasing with cash and buying a straightforward resale property, total closing costs can be as low as 3.2% to 4% of the purchase price. If you use a mortgage, engage an agent and a lawyer, and require valuations and inspections, closing costs can realistically reach 7% to 10% of the purchase price.

Do I need a lawyer to buy property in Oman, and how do I find a reputable one?

Engaging a lawyer is not an absolute legal requirement for straightforward resale transactions in Oman, but it is highly advisable — particularly for foreign buyers who are unfamiliar with the local legal system, Arabic-language documentation, or the ITC approval framework. Professional legal representation ensures proper contract review, title verification, and compliance with applicable regulations.

Hiring a lawyer for contract review and title verification is an optional but strongly recommended cost for foreign buyers in Oman, typically amounting to OMR 500 to OMR 1,500 (approximately USD 1,300–3,900) as of 2025. Some law firms offer fixed-fee packages for standard property transactions, typically ranging from OMR 1,500 to OMR 5,000 for properties valued under OMR 300,000. These figures should be confirmed directly with individual firms, as rates vary according to transaction complexity.

Legal and notary fees in Oman generally range from 1–2% of the property value, depending on transaction complexity and the firm engaged. For a standard residential purchase, most buyers pay around 1.5% of the property value for a comprehensive legal service covering contract review, title verification, due diligence, and representation during the registration process.

Additional legal costs may include document translation (OMR 50–150), preparation of a power of attorney for buyers purchasing remotely (OMR 100–300), and specialist advice on ITC purchases by foreign nationals (OMR 300–800).

Lawyers practising in Oman must be registered with the Oman Bar Association (Bar Association of the Sultanate of Oman). You can verify a lawyer’s licence and locate registered practitioners through the Bar Association. The association can be reached via the Ministry of Justice, Courts and Legal Affairs at mojla.gov.om. When selecting a lawyer, look for demonstrable experience in real estate and ITC transactions, and ask for references from previous international clients. Many established Muscat law firms have bilingual staff and a track record of acting for foreign buyers.

What are the most common pitfalls expats encounter when buying property in Oman?

Purchasing outside approved zones. The most fundamental risk for foreign buyers is acquiring a property — or committing a deposit — in an area not officially designated as an ITC or approved zone. Establishing whether a property lies within an eligible area is a critical first step to avoid legal difficulties further down the line. Always request official ITC designation documentation before signing anything.

Undisclosed encumbrances on title. A clear red flag that should halt or pause any purchase is discovering an unresolved mortgage or legal charge against the property, as this means the seller cannot pass clean title until that liability is discharged. A look-back period of 10 to 15 years for ownership history checks is commonly used in Oman, helping to identify irregular transfers, inheritance disputes, or previously cleared liens that could resurface.

Off-plan purchase risks. Buying off-plan may offer more favourable entry pricing, but it carries developer default and construction delay risks. Costs that are frequently not disclosed upfront include VAT on first-supply properties (if the developer fails to state it clearly), ongoing service charges in managed communities (if the vendor does not share historical statements), and mortgage-related add-ons beyond the headline interest rate. Always insist on escrow-protected payment structures for off-plan transactions.

Unlicensed or unregistered agents and developers. Only deal with licensed developers: approved developers offer legally sound and transparent projects with smoother registration processes. Verify that any agent or developer you engage is officially registered. Fraudulent listings and bogus fees do occur in Oman’s property market, so always pay government fees through official channels only, use a licensed agent, instruct a lawyer to oversee payment mechanics, and never wire deposits to personal accounts without verified documentation.

Inheriting unpaid service charges. Although Oman does not impose significant annual property tax bills, it is possible to inherit outstanding service charges, utility arrears, or homeowners’ association dues from the previous owner. Making clearance of all arrears a non-negotiable condition of completion is essential.

Currency transfer risks. The Omani Rial is pegged to the US dollar, providing exchange rate stability against USD-denominated transactions. However, buyers holding euros, British pounds, or other currencies remain exposed to exchange rate fluctuations. Using a specialist currency transfer service rather than a retail bank can meaningfully reduce transfer costs on large sums. Seek independent advice on hedging strategies if the purchase sum is substantial.

Mortgage access limitations. While foreigners face no major obstacles to owning property in Oman, securing a mortgage as a non-resident can be challenging. Most Omani banks require applicants to be resident in Oman and hold a valid residence permit. For non-residents, a cash purchase is the most straightforward route, or financing may be explored through banks in the buyer’s home country. Mortgage arrangements should be confirmed well in advance of signing any sale agreement.

Can I buy property in Oman through a company, and is it worth doing?

Purchasing property in Oman through a corporate structure is possible and is used by a number of international investors. Wholly foreign-owned entities can be established as offshore entities and acquire usufruct rights over property within their specific zone of establishment. For mainland ITC property, ownership via a locally registered company or a joint-venture arrangement is also feasible.

The potential advantages of a corporate purchase structure include simplified inheritance and succession planning — shares in a company can be transferred without triggering a full property re-registration — possible tax efficiency depending on the jurisdiction of the holding company, and a cleaner arrangement for multiple investors co-investing in a single asset. Some buyers also adopt a corporate structure to facilitate eventual resale to institutional purchasers, who may prefer to acquire shares rather than direct real estate title.

The downsides include the cost and administrative burden of incorporating and maintaining a legal entity in Oman, ongoing compliance obligations, and potential complications when applying for property-linked residency, which is generally granted to individual owners rather than corporate entities. The right to hold land through a wholly GCC-owned company is subject to exceptions for certain reserved areas, and restrictions on corporate foreign ownership can differ from those applying to individual purchasers.

The tax and legal consequences of corporate ownership can be significant and will vary depending on your country of residence and the jurisdiction of the holding company. Independent legal and tax advice should be sought before proceeding with a corporate purchase structure.

What taxes and ongoing costs should I budget for when owning property in Oman?

Oman currently levies no annual property tax. There is likewise no capital gains tax or inheritance tax, which considerably reduces the ongoing cost of ownership. This represents a significant advantage relative to markets such as France — where an annual taxe foncière applies — or the UK, where council tax and capital gains tax on second properties are payable.

There are no recurring property taxes in Oman. At the point of purchase, the buyer pays a one-time registration fee of 3% of the property value to effect title transfer, along with annual maintenance charges of approximately OMR 4 per sq m within managed communities. For a 100 sq m apartment, service charges would amount to roughly OMR 400 annually (approximately USD 1,000).

Costs that are sometimes not disclosed upfront include VAT on first-supply properties, so buyers should always ask the developer directly whether VAT at 5% is incorporated within the quoted price or charged in addition.

Regarding rental income, Oman does not currently impose personal income tax on individuals, meaning rental income earned by individual property owners is not subject to income tax. Corporate-owned properties and commercial rental activities may be subject to different obligations. Always verify the prevailing position with the Oman Tax Authority at taxoman.gov.om, as tax regulations can change.

What are the official sources I should consult when buying property in Oman?

When purchasing property in Oman, the following official bodies and resources serve as your primary points of reference. Always verify information directly with these authorities, as rules and fees are subject to change:

• Ministry of Housing and Urban Planning (MoHUP) — the principal authority for property registration, ITC designation, title deeds, and foreign ownership regulations. Website: housing.gov.om
• National Centre for Statistics and Information (NCSI) — publishes quarterly real estate price indices and transaction data. Website: ncsi.gov.om
• Oman Tax Authority (OTA) — the national authority for VAT and other fiscal obligations. Website: taxoman.gov.om
• Ministry of Justice, Courts and Legal Affairs — oversees the legal profession, including the Bar Association. Website: mojla.gov.om
• Royal Oman Police (Immigration Directorate) — handles residency permit applications linked to property ownership. Website: rop.gov.om
• Invest Oman — the official investment promotion platform, including information on the Golden Visa programme for property investors. Website: investoman.com
• Central Bank of Oman (CBO) — for regulatory guidance on mortgage lending and financial services. Website: cbo.gov.om

Frequently asked questions about buying property in Oman

Can I buy any type of property in Oman as a foreign national?

Foreign nationals may legally purchase property in Oman primarily within government-designated Integrated Tourism Complexes (ITCs) and Special Economic Zones (SEZs). Agricultural land and properties in restricted areas such as Musandam, Buraimi, and zones adjacent to military installations or heritage sites are unavailable to foreign buyers. As of 2025, some broadening of foreign ownership rights beyond ITCs has been introduced — confirm the current position with MoHUP before proceeding.

Will buying property in Oman give me residency?

The Golden Residency programme, relaunched in August 2025, offers a renewable 10-year residency permit for purchases of ITC property valued at a minimum of OMR 200,000 (around USD 520,000), covering the buyer, spouse, children, and first-degree relatives. Purchasing a property worth less than OMR 200,000 still qualifies the buyer for a 2-year renewable residency permit, provided the property remains registered in their name. Property ownership does not confer citizenship, as Oman does not operate a citizenship-by-investment pathway.

Are there any restrictions on renting out my property in Oman?

There is no specific foreign ownership quota restricting the number of units an overseas buyer may hold in a single ITC development, but individual community regulations may impose limitations on permitted use types or rental activities within specific buildings. Short-term holiday rentals are in strong demand, particularly in Salalah during the Khareef season and in Al Mouj Muscat throughout the year. Always review the rules of the specific ITC or development before committing to a particular rental strategy.

Can I get a mortgage in Oman as a non-resident foreign buyer?

Securing a mortgage as a non-resident can be challenging. Most Omani banks require applicants to be resident in Oman and hold a valid residence permit. For non-residents, a cash purchase is the most straightforward option, or financing may be pursued through lenders in the buyer’s home country. Where mortgage finance is available, banks may lend up to 70% of the property value for foreign nationals purchasing in designated areas. Mortgage interest rates in Oman start at around 7%; confirm current rates directly with Omani banks such as Bank Muscat or Bank Dhofar.

How long does the property buying process take in Oman?

The full process typically takes 2–3 months from identifying a property to receiving the title deed. This encompasses due diligence, obtaining a No-Objection Certificate, executing the Sale and Purchase Agreement, and completing registration with MoHUP. Off-plan purchases carry longer timelines tied to construction completion.

Is there a minimum property value I need to invest?

There is no minimum purchase price required solely to exercise the right to buy within an ITC, but residency entitlements are linked to investment thresholds. The minimum investment qualifying for standard ITC residency is approximately OMR 50,000 (around USD 130,000), meaning entry-level apartments are eligible for residency benefits. The threshold for the 10-year Golden Residency is OMR 200,000 as of 2025. Always verify current thresholds with MoHUP or Invest Oman.

What is the difference between freehold and usufruct ownership in Oman?

Freehold ownership confers full and permanent rights over the property and the land on which it stands — the most desirable form of title. Usufruct rights entitle the holder to use and derive income from a property for a fixed term of up to 99 years, without owning the underlying land. Upon expiry of the usufruct right, all rights in the land revert to the grantor, who has remained the absolute owner throughout. Freehold is available to foreign buyers in approved ITCs; usufruct is the standard arrangement in other designated areas.

Do I need to pay VAT when buying property in Oman?

VAT at 5% may be applicable to first-supply (new-build) properties where the developer has not clearly stated otherwise. Resale properties are generally exempt from VAT. The principal transactional cost for foreign buyers is the 3% property transfer and registration fee payable to MoHUP. Oman does not have a stamp duty equivalent. Always ask the developer to clarify whether their quoted price is inclusive or exclusive of VAT before signing a reservation agreement, and verify the current VAT treatment with the Oman Tax Authority.

What happens if a developer fails to deliver an off-plan property in Oman?

Foreign investors have recourse through the courts or arbitration centres in the event of disputes with developers. Escrow accounts are mandatory for off-plan purchases, meaning buyer funds should be held separately from the developer’s operating accounts and released only upon agreed construction milestones. Carefully review all contractual terms regarding payment schedules, delivery timelines, penalties for delay, cancellation rights, and dispute resolution procedures before signing. Instructing a lawyer to review the Sale and Purchase Agreement is particularly important for off-plan contracts, where the risk of delayed or non-delivery is greatest.