Property Investment
FAQ

Yes. Non-GCC nationals can legally purchase 100% freehold property in designated Integrated Tourism Complexes (ITCs) such as Al Mouj Muscat, Muscat Bay, AIDA, Jebel Sifah, and Hawana Salalah.

Additionally, under Ministerial Decision 357/2020, expatriates who have resided in Oman for at least 2 years can acquire Usufruct rights (up to 99-year leasehold) in approved buildings outside ITCs.

An Integrated Tourism Complex is a government-designated development zone where non-Omanis can own freehold property. These master-planned communities typically include residential, commercial, leisure, and hospitality components.

Key ITCs include:

• Al Mouj Muscat (The Wave)
• Muscat Bay
• AIDA (with Trump International Golf Club)
• Jebel Sifah
• Muscat Hills
• Hawana Salalah

Usufruct is a long-term leasehold right (up to 99 years) that allows foreigners to own property outside ITCs. Under Decision 357/2020, eligibility requires:

• Minimum 2 years residency in Oman
• Age 23 or older
• Property in a building with 4+ floors
• Minimum value of OMR 45,000 in Muscat
• Maximum 40% foreign ownership per building
• Maximum 20% single-nationality per building

Freehold (ITC):

• 100% perpetual ownership of land and building
• Full inheritance rights
• No nationality restrictions
• Grants residency rights
• Available only in designated ITCs

Usufruct:

• Up to 99-year leasehold rights
• Requires 2+ years Oman residency
• Available in city-center Muscat areas
• Lower entry prices
• Subject to building ownership limits

A Mulqiya is the official Title Deed issued by the Ministry of Housing and Urban Planning (MOHUP). It proves your legal ownership of the property and includes details such as the owner's name, property description, plot number, and registration date.

For foreigners purchasing in ITCs, the Mulqiya confirms 100% freehold ownership and is required for residency visa applications.

As of August 2025, Oman's Investor Residency Program offers the following pathways:

• 10-Year Golden Visa: Minimum OMR 200,000 investment (~$520K USD) - the new streamlined threshold
• Property Owner Visa (2-year): Minimum OMR 100,000 investment in an ITC property

Investment can be via ITC property, government bonds, listed equities, fixed bank deposits, or company establishment. The 10-year visa is renewable indefinitely while maintaining the investment.

Yes. The Investor Residency Program allows sponsorship of immediate family members including:

• Spouse
• Children (unmarried, no age limit)
• Parents (for First Class tier)

Dependents receive the same residency duration as the primary applicant.

The Investor Residency Program is flexible. Unlike some countries, Oman does not require a minimum number of days per year in-country to maintain your residency status.

However, your residency is tied to maintaining the investment. If you sell the property, you must either purchase another qualifying property or exit the program.

Yes. The Investor Residency Program grants the right to work in Oman or establish your own business without needing a separate sponsor. This is one of the key benefits over employment-based visas.

The primary government cost when buying property in Oman is a one-time 3% registration fee (transfer fee) calculated on the property value. This is paid to the Ministry of Housing & Urban Planning (MOHUP) upon the issuance of the Title Deed (Mulqiya).

For example, on a OMR 200,000 property, the registration fee would be OMR 6,000.

No. Oman does not levy annual property taxes. This is one of the key advantages for investors. Your only ongoing costs are:

• Service charges (community fees): OMR 3-8 per sqm annually
• Maintenance and repairs
• Insurance (optional but recommended)

No. Oman does not impose capital gains tax on property sales for individuals. When you sell your property, the profit is not taxed. This applies to both Omani nationals and foreign investors.

The only cost at sale is typically the agent commission (around 3%), which is usually paid by the seller.

No personal income tax. Oman has no personal income tax on rental income. However, there is a 3% municipal rental levy applied to gross rental income, which is relatively modest compared to most jurisdictions.

Additionally, budget approximately 1% of property value annually for maintenance costs. Even with these, Oman remains highly tax-efficient for buy-to-let investment.

Residential property is VAT-exempt. The 5% VAT in Oman applies to commercial property transactions, but residential purchases and rentals are exempt.

However, VAT does apply to services such as broker commissions and legal fees.

Gross rental yields in prime Omani ITCs typically range from 5% to 8%:

• Al Mouj Muscat: 6-8% gross, ~4-5.5% net
• Muscat Bay: 5-7% gross (luxury segment)
• Jebel Sifah: 7-9% gross (short-term rental focus)
• Sultan Haitham City: 8-10% projected (emerging)

Oman's lack of personal income tax significantly enhances net returns compared to taxed jurisdictions.

Two-bedroom apartments in prime ITCs offer the optimal balance of yield and occupancy:

• Lowest vacancy rates (young families + expat professionals)
• 92%+ occupancy in established communities
• Units near retail command 20% premium rents

Villas yield lower (4-5%) but attract C-suite executives on stable 2-3 year contracts.

Short-term rentals can achieve 8-10% gross with proper furnishing and management.

Off-plan purchases offer several advantages:

• Lower entry prices: Typically 10-30% below completed market value
• Flexible payment plans: Spread payments over construction period (2-4 years)
• Capital appreciation: Build equity during construction
• First choice: Select preferred units, floors, and views

However, conduct due diligence on developer track record and ensure payments go into an escrow account.

Yes. Short-term rentals operate in ITCs across Oman. Well-furnished 2-bedroom apartments in Al Mouj can generate:

• Long-term lease: OMR 600-700/month
• Short-term rental: OMR 80-120/night (OMR 1,000+/month peak season)
• Annual occupancy: 60-70%

Oman's tourism target of 11.7 million visitors by 2040 supports strong STR demand.

The typical property purchase journey:

1. Strategy & Intake: Define investment objective, verify eligibility for ITC or Usufruct
2. Property Selection: Browse listings, conduct viewings, select unit
3. Reservation: Sign reservation form, pay 5-10% deposit
4. SPA Signing: Review and sign Sales & Purchase Agreement
5. Ministry Approval: Submit to MOHUP for endorsement
6. Final Payment: Complete payment schedule
7. Title Deed: Receive Mulqiya from Ministry
8. Residency: Apply for Investor Residency (if applicable)

For a ready property, the typical timeline is 8-12 weeks:

• Weeks 1-2: Property selection and reservation
• Week 3: SPA signing and deposit payment
• Weeks 4-6: Developer NOC and Ministry processing
• Weeks 7-10: Final payment and title deed transfer
• Weeks 10-12: Residency application (if applicable)

Off-plan purchases follow the developer's construction timeline (typically 2-4 years).

Yes. Approximately 60% of international transactions are completed remotely. Key mechanisms include:

• Power of Attorney (PoA): Appoint a local lawyer to sign final documents on your behalf
• Digital Signing: Reservation and SPA can be signed via DocuSign
• Remote Handover: Third-party snagging companies can inspect and accept keys
• IBAN Transfers: International bank transfers directly to escrow accounts

Essential documents for property purchase:

• Valid passport (minimum 6 months validity)
• Passport-size photographs
• Proof of funds (bank statements)
• Source of funds documentation (for large purchases)

For residency application, you'll also need:

• Police clearance certificate
• Medical report from approved center
• Health insurance

Selling timelines vary by location:

• Prime ITCs (Al Mouj, Muscat Bay): 2-4 months
• Mid-market areas: 4-6 months
• Best listing window: September-March (expat relocations)

Exit costs:

• Agent commission: ~3% (seller typically pays)
• Legal fees: OMR 500-1,000
• Capital gains tax: 0%