Property Investment
Glossary
Essential vocabulary for understanding Oman's property market. From ITCs to Mulqiya, master the terminology used by investors and professionals.
35 Terms Defined
Complete A-Z Glossary
AIDA
A premium Integrated Tourism Complex in Muscat featuring the Trump International Golf Club Oman, ultra-luxury residences, and cliffside villas overlooking the Gulf of Oman.
Related Resources
Al Mouj Muscat
Also known as 'The Wave', Al Mouj is Oman's flagship ITC development featuring waterfront apartments, villas, a marina, golf course, and extensive retail/dining at The Walk.
Related Resources
Broker Commission
The fee paid to a real estate agent for facilitating a property transaction. In Oman, this is typically 2-3% of the property value, usually paid by the seller.
Related Resources
Capital Appreciation
The increase in property value over time. Oman offers 0% capital gains tax, meaning appreciation profits are not taxed when you sell.
Related Resources
Developer NOC
No Objection Certificate issued by a property developer confirming they have no objection to the sale or transfer of a property within their development.
Related Resources
Escrow Account
A protected bank account where buyer funds are held during an off-plan purchase. Funds are released to the developer only upon reaching construction milestones, protecting buyers from developer default.
Related Resources
First Class Residency
Historically the top tier of Oman's Investor Residency Program (OMR 500k+). As of August 2025, Oman introduced a unified 10-year Golden Visa at OMR 200,000. The First Class tier may still apply to legacy applicants.
Related Resources
Freehold
100% perpetual ownership of both the land and the building. In Oman, foreigners can own freehold property only within ITCs (Integrated Tourism Complexes).
Related Resources
Golden Visa
Oman's Investor Residency Program granting 10-year renewable residency. As of August 2025, the threshold is OMR 200,000 (~$520K USD) via property, bonds, equities, or bank deposits. Allows family sponsorship and work rights.
Related Resources
Gross Yield
Annual rental income divided by the property purchase price, expressed as a percentage. Does not account for operating costs, vacancies, or management fees.
Related Resources
Hawana Salalah
An ITC development in Salalah, southern Oman, known for its monsoon (Khareef) season tourism and lower entry prices compared to Muscat ITCs.
Related Resources
ITC
Integrated Tourism Complex – a government-designated development zone where non-GCC nationals can legally purchase 100% freehold property. ITCs are master-planned with residential, commercial, leisure, and hospitality components.
Related Resources
Investor Residency Program (IRP)
Oman's official residency-by-investment scheme administered by MOCIIP. As of August 2025, the 10-year Golden Visa requires OMR 200,000 minimum investment. A 2-year Property Owner Visa is available with OMR 100,000+ investment in an ITC.
Related Resources
Jebel Sifah
A resort-focused ITC south of Muscat known for its hotel-managed rental programs, marina, and strong short-term rental yields (7-9% gross).
Related Resources
LTV (Loan to Value)
The ratio of a mortgage loan to the property value. In Oman, expats can typically borrow up to 70% LTV, meaning a 30% down payment is required. Some banks may offer up to 90% for first-time buyers with strong financial profiles.
Related Resources
Ministerial Decision 357/2020
The regulation allowing non-Omanis with 2+ years residency to purchase usufruct rights (up to 99 years) in approved buildings outside ITCs. Key conditions include minimum property value and building ownership limits.
Related Resources
MOCIIP
Ministry of Commerce, Industry and Investment Promotion – the government body that administers the Investor Residency Program and business licensing in Oman.
Related Resources
MOHUP
Ministry of Housing and Urban Planning – the government body responsible for property registration, issuing Title Deeds (Mulqiya), and approving foreign property purchases in Oman.
Related Resources
Mulqiya
The official Title Deed in Oman, issued by MOHUP. It proves legal ownership and includes owner details, property description, plot number, and registration date. Required for residency visa applications.
Related Resources
Muscat Bay
A luxury ITC development featuring the Kempinski Hotel, beachfront villas, and high-end apartments. Known for its secluded bay location and ultra-premium positioning.
Related Resources
Net Yield
Annual rental income minus all operating costs (service charges, management fees, maintenance, vacancy allowance) divided by purchase price. The true return on investment.
Related Resources
Off-Plan
Property purchased before or during construction. Typically offers lower prices (10-30% below market) and flexible payment plans spread over the build period.
Related Resources
OMR
Omani Rial – the currency of Oman. Pegged to USD at 1 OMR = 2.60 USD. This peg provides currency stability for dollar-based investors.
Related Resources
Power of Attorney (PoA)
A legal document authorizing another person (typically a lawyer) to act on your behalf for property transactions. Essential for remote purchases when you cannot be physically present.
Related Resources
Property Owner Visa
A 2-year renewable residency visa granted to owners of ITC property worth at least OMR 100,000. The entry-level residency option for property investors below the OMR 200,000 Golden Visa threshold.
Related Resources
Registration Fee
The 3% one-time fee paid to MOHUP when a property is registered in your name. Calculated on the property value and paid upon issuance of the Mulqiya (Title Deed).
Related Resources
RETT
Real Estate Transaction Tax – another term for the 3% registration fee paid to MOHUP upon property transfer in Oman.
Related Resources
Second Class Residency
Historically the second tier of Oman's Investor Residency Program (OMR 250k+, 5 years). As of August 2025, Oman introduced a unified 10-year Golden Visa at OMR 200,000. This tier may still apply to legacy applicants.
Related Resources
Service Charges
Annual fees paid to the community/development management for common area maintenance, security, landscaping, and shared facilities. Typically OMR 3-8 per sqm in Oman ITCs.
Related Resources
Snagging
The process of inspecting a newly completed property for defects before accepting handover. Third-party snagging companies can conduct this remotely for overseas buyers.
Related Resources
SPA
Sales & Purchase Agreement – the legally binding contract between buyer and seller (or developer) outlining the terms of the property transaction including price, payment schedule, and completion date.
Related Resources
Sultan Haitham City
Oman's first smart city development, designed for sustainable living under Vision 2040. Features emerging investment opportunities with projected yields of 8-10%.
Related Resources
Usufruct
A long-term leasehold right (up to 99 years) allowing foreigners to own property outside ITCs. Governed by Ministerial Decision 357/2020 and requires 2+ years Oman residency.
Related Resources
VAT
Value Added Tax at 5% in Oman. Residential property purchases and rentals are exempt, but VAT applies to commercial property and professional services (broker fees, legal fees).
Related Resources
Vision 2040
Oman's long-term national strategy to diversify the economy away from oil, targeting 40% non-oil GDP by 2040. Real estate is a key pillar, driving infrastructure and ITC development.
Related Resources
Ready to Start Your Investment?
Now that you understand the terminology, explore available properties or speak with our advisory team.