Oman is an independent Arab state with a developed economy and favorable conditions for business. The Sultanate is actively expanding its tourism sector and improving infrastructure, making it increasingly attractive to foreign real estate buyers and investors.
Here is a detailed guide on purchasing property in Oman in 2025, covering legal aspects, a step-by-step transaction process, and additional costs.
Rights and Obligations of Foreign Buyers
The real estate market in Oman opened to foreigners in 2007 when the Sultan of Oman signed Royal Decree No.12/2026, allowing non-citizens to acquire private property ownership in designated Free Economic Zones, specifically within Integrated Tourism Complexes (ITCs).
ITCs in Oman are large-scale resort developments featuring apartments, villas, and extensive infrastructure, including hotels, shops, bars, restaurants, marinas, and golf clubs.
What Types of Real Estate Can Foreigners Buy?
Within ITC zones, foreigners are permitted to acquire properties and land plots under full ownership (freehold).
When purchasing a land plot, the new owner is required to develop a building within four years. This period can be extended with approval from the Ministry of Housing and Urban Planning. If construction is not completed within the deadline, the government reserves the right to auction the land.
Additionally, in 2018, the Sultan of Oman issued Decree No. 29, restricting foreign ownership of real estate in certain areas. These include Dhofar (except for Salalah, Musandam, Buraimi, Dhahirah, and Al-Wusta), Liwa, Shinas, and Masirah; Jebel Akhdar, Jebel Shams, and areas near military bases, archaeological, and historical sites.
The full list of restrictions can be found in the official document (in English).
Long-Term Property Use Rights for Foreigners
The above regulations apply to full ownership rights. However, foreigners in Oman can also acquire long-term usage rights for certain properties.
In 2020, Royal Decree 357/2020 granted foreigners the right to purchase residential and commercial properties outside ITCs under usufruct agreements. The initial usufruct term cannot exceed 50 years but may be extended up to 99 years.
Conditions for Acquiring Usufruct Property Rights
- The buyer must be at least 23 years old and have resided in Oman for at least two years.
- Foreign buyers can purchase only one property under this scheme.
- The property must be in a multi-story building (four or more floors) in a licensed area designated by the Ministry of Housing and Urban Planning (MHUP).
- The share of foreign ownership in a building cannot exceed 40%, with no more than 20% from a single nationality.
- The minimum purchase price is 45,000 Omani rials ($116,000) in Muscat and 35,000 Omani rials ($90,000) in other provinces.
What Rights Do Foreigners Get After Purchasing Property in Oman?
A residence permit (visa) can be obtained with any investment amount in properties within ITC zones, as long as it is a primary residential property that has been completed and handed over.
The investor can include their spouse, minor children, and parents in the residence permit application.
- Visa duration: 2 years with the possibility of renewal.
- Since 2021, Oman also offers a Golden Visa program for investors.
Golden Visa for Real Estate Investment
Foreigners can obtain long-term residency by purchasing property:
- From 250,000 OMR ($650,000) – Residency for 5 years.
- From 500,000 OMR ($1.3 million) – Residency for 10 years.
What Obligations Do Foreign Buyers Have?
Although there is no annual property tax in Oman, owners must regularly pay for utilities and maintenance fees in ITC complexes.
All properties within ITC projects can be rented out. Developers provide professional property management services:
- Short-term rental management fee: 20% of total income.
- Long-term rental management fee: 5% of total income.
Rental yields in Oman are one of the highest in the region, averaging 6–8%.
Real Estate Agents and Lawyers in Oman
Real estate brokerage in Oman is subject to mandatory registration with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) and requires a license from the Ministry of Housing and Urban Planning (MHUP).
Before engaging a real estate agent, it is recommended to verify their registration and licensing.
Technically, it is possible to complete a property transaction without an agent, but understanding the complexities of the local market and legal system can be challenging for foreigners. Partnering with reputable local agents can significantly simplify the process of finding a suitable property and completing the transaction.
Real Estate Agent Services in Oman
- Property Search and Selection – Agents help find suitable real estate options based on your requirements and budget, leveraging their databases and professional network.
- Market Analysis and Property Valuation – Agents analyze current market conditions to help determine a realistic price.
- Negotiation Assistance – A professional agent negotiates with the seller, often securing better deal conditions.
- Document Verification and Legal Support – Agents ensure the transaction is legally sound by checking property documents and assisting with the legal process.
- Transaction Management – From the initial inquiry to official registration, agents facilitate the entire process, including notary arrangements and administrative tasks.
Who Pays the Real Estate Agent in Oman?
In Oman, the seller typically pays the agent’s commission, which is usually around 2–3% of the transaction value.
However, if a buyer hires an agent to search for and manage the deal, the payment terms are agreed upon individually. It is crucial to clarify and document the agent’s fees in a written contract.
Step-by-Step Property Purchase Process in Oman
Step 1: Signing the Preliminary Agreement and Reserving the Property
Once the buyer selects a property, they submit an official purchase request through the broker. If the offer is accepted, the buyer and seller sign a preliminary purchase agreement outlining the property price and key transaction terms.
At this stage, the buyer pays a deposit of 5% of the property’s price as a sign of commitment. The property is then taken off the market and reserved.
Step 2: Property Verification
To ensure the property is legally sound, it is advisable to hire a lawyer. While real estate agents can assist in coordinating the process, they are not responsible for conducting legal due diligence. Buyers may perform checks themselves, but this requires in-depth knowledge of local laws and regulations.
For assessing the technical condition of the property, hiring an independent expert is recommended.
Sources of Publicly Available Property Information in Oman
- Official ITC Websites – Many integrated complexes have dedicated websites detailing available properties, amenities, and services.
- Developer Websites – Major developers like Omran (a government-backed company) and Alargan Towell Investment Company often publish information on their projects.
- Government Resources – The Ministry of Housing and Urban Planning (MHUP) provides general information on registered projects, though details may be limited.
- News Portals and Media – Updates on new developments and construction phases frequently appear in Omani news outlets.
Step 3: Signing the Final Sale and Purchase Agreement
In Oman, notarization is not required for property transactions. Buyers and sellers can sign the final purchase agreement directly at the developer’s office.
The contract must include:
✔ Price and payment terms
✔ Ownership transfer details
✔ Other conditions of the transaction
Required Buyer Documents
- Passport
- Proof of Address
- No requirement to disclose the source of funds
Step 4: Payment and Transaction Completion
In Oman, developers are required to open an escrow account for each project in a licensed bank. All property payments must be made through this account.
This system protects buyers since developers only receive funds after project completion or upon achieving a specific construction milestone.
Property payments are typically made in installments, with the initial deposit paid at contract signing. The remaining balance follows an agreed payment schedule.
Step 5: Obtaining the NOC Certificate
At this stage, the lawyer submits a request for a No Objection Certificate (NOC) from the Ministry of Housing and Urban Planning. This document confirms that the buyer is eligible to purchase the property, and the terms of the transaction comply with local laws.
Typically, the buyer’s lawyer handles the process of obtaining the certificate, which usually takes around one month.
Step 6: Property Ownership Registration
Once the authorities approve the transaction, the ownership transfer must be registered with the Land Registry Department.
Upon successful registration, the buyer receives the title deed, which is the official proof of property ownership.
If the property is under construction, the developer transfers ownership after the final payment is made.
The entire property purchase process in Oman usually takes from ten days to one month.
Remote Transactions
If the buyer is unable to travel to Oman to complete the transaction, it is possible to finalize the deal remotely using a power of attorney. The power of attorney can be notarized in the buyer’s home country, after which it is sent by mail to the buyer’s trusted representative (such as a real estate agent). The representative will then translate the document into Arabic and have it apostilled.
Important Note: While an apostille is often sufficient, Oman is not a member of the Hague Convention. Therefore, it may be necessary to further legalize the document through an Omani consulate or embassy. To avoid any complications, it is advised to check current requirements with the Omani consulate or consult with a lawyer specializing in real estate transactions in Oman.
Taxes and Additional Costs
- VAT
When purchasing property from a developer, the buyer is required to pay VAT at a rate of 5%. - Registration Fee
After the property is completed or purchased, a registration fee of 3% of the property value is charged. Similarly, when registering a usufruct right at the Land Registry Secretariat, a 3% fee applies based on the property’s value. - Title Deed Issuance Fee
The title deed issuance fee in Oman is typically 1% of the property value (registration fee) plus approximately 50 OMR for document processing. - Real Estate Agent’s Commission
The real estate agent’s commission for purchasing primary properties is generally paid by the developer. - Additional Expenses
Other expenses may include notary, legal, and translation fees. To clarify the exact costs, it is recommended to consult with the Ministry of Housing, a local lawyer, or a real estate agent.
Summary
- Foreigners are allowed to buy real estate in full ownership only in designated ITC zones in Oman.
- Purchasing any property entitles the buyer to apply for a residence visa (long-term visa) valid for two years.
- The property purchase process in Oman typically takes about a month.
- Buyers need to obtain a No Objection Certificate (NOC) from the Ministry of Housing and Urban Planning before acquiring property.
- Buyers of new properties are fully protected by local legislation, and payments for such transactions are processed through escrow accounts.
- After purchasing, the owner does not need to pay annual property taxes but must contribute to the maintenance of the residential complex.
