Oman's Open Door Policy for Foreign Property Buyers
Oman has positioned itself as one of the Gulf's most accessible markets for international property investment. Unlike some neighboring countries with restrictive foreign ownership laws, the Sultanate welcomes foreign buyers through a well-defined regulatory framework that balances investment attraction with market stability.
As of 2025, thousands of foreign nationals from over 50 countries own property in Oman—from beachfront villas in Al Mouj to mountain-view residences in Muscat Hills, diplomatic quarter apartments in Madinat Al Sultan Qaboos to vacation homes in Salalah. The process is transparent, legally robust, and increasingly streamlined.
This guide clarifies exactly how foreigners can buy property in Oman in 2025, covering regulatory updates, eligible property types, step-by-step acquisition process, and critical legal considerations for international buyers.
Key Insight: The Oman property market in 2025 offers foreign buyers more opportunities than ever before, with clearer regulations, expanded financing options, and growing inventory across both freehold and leasehold segments.
Who Can Buy Property in Oman? Eligibility in 2025
Nationality Requirements
Oman welcomes property buyers from virtually all nationalities with few restrictions:
Eligible Buyers:
- Citizens of all GCC countries (unrestricted access)
- Foreign nationals from most countries worldwide
- No requirement to be Oman resident or visa holder
- Both individuals and corporate entities can purchase
- No citizenship-by-investment pathway (property purchase does not grant citizenship)
Rare Restrictions:
- Countries under international sanctions may face limitations
- Specific nationality restrictions apply in rare cases (consult legal counsel if uncertain)
Residency Status
Foreign buyers do not need to be Oman residents to purchase property:
- Non-residents: Can purchase both freehold (in ITCs) and leasehold properties
- Residents: Same access as non-residents, no additional benefits for residency status
- Visa-holders: Employment or tourist visa status doesn't affect property buying rights
Note: Property purchase may qualify you for residence visa programs (separate immigration process—see dedicated section below).
What Types of Property Can Foreigners Buy?
Freehold Properties in Integrated Tourism Complexes (ITCs)
Foreign nationals can purchase freehold property—meaning perpetual ownership—in government-designated Integrated Tourism Complexes.
Major ITCs Open to Foreign Buyers (2025):
- Al Mouj Muscat: Golf course, marina, beach club, mixed residential (apartments, villas, townhouses)
- Muscat Hills Golf & Country Club: Championship golf course, mountain views, luxury villas
- The Wave Muscat: Coastal community with multiple neighborhoods and property types
- Azura Beach Residences: Beachfront apartments with resort amenities
- Jebel Sifah: Coastal development 90 minutes from Muscat
- Salalah Beach Resort: Southern Oman coastal properties
- Muscat Bay: Integrated coastal community
Property Types in ITCs:
- Apartments (studios to 4-bedroom penthouses)
- Townhouses (2-4 bedrooms)
- Villas (3-6 bedrooms on individual plots)
- Off-plan developments (pre-construction purchases)
Price Ranges (2025):
- Apartments: OMR 60,000 - 400,000+
- Townhouses: OMR 150,000 - 350,000
- Villas: OMR 200,000 - 1,500,000+
Leasehold Properties in Established Neighborhoods
Foreign nationals can purchase long-term leasehold rights (typically 50-99 years) in Muscat's established neighborhoods.
Key Leasehold Areas:
- Qurum: Premier beachfront neighborhood, high rental yields
- Madinat Al Sultan Qaboos: Diplomatic quarter, prestigious address
- Al Khuwair: Commercial and residential hub
- Shatti Al Qurum: Coastal district
- Al Ghubra: Mixed residential area
- Ruwi/Muttrah: Historic commercial districts (limited residential)
Lease Terms:
- 50-year leases: Common for apartments
- 99-year leases: Standard for premium villas
- Renewable: Many leases include renewal provisions
- Transferable: Can be sold to other buyers, inherited by heirs
Price Ranges (2025):
- Apartments: OMR 50,000 - 350,000+
- Villas: OMR 180,000 - 800,000+
The 2025 Buying Process: Step-by-Step
Step 1: Property Search and Selection (2-4 Weeks)
Research Phase:
- Define budget (including 5-8% transaction costs)
- Choose between freehold (ITCs) or leasehold (established neighborhoods)
- Research target communities and neighborhoods
- Review market comparables for realistic pricing
- Engage licensed property consultant
Viewing Phase:
- Visit shortlisted properties multiple times
- Assess neighborhood infrastructure and amenities
- Speak with current residents if possible
- Review service charge history and community financials
Step 2: Making an Offer (1 Week)
Offer Submission:
- Submit written offer through agent or directly to seller
- Negotiate price based on comparable sales and property condition
- Agree on included fixtures, fittings, appliances
- Establish timeline for due diligence and completion
Reservation Agreement:
- Pay reservation deposit (typically 5-10% of purchase price)
- Deposit held in escrow or agent trust account
- Secures property for 7-14 days during due diligence
- Includes conditions for deposit recovery if issues discovered
Step 3: Due Diligence (2-3 Weeks)
Legal Verification:
- Engage Omani-qualified lawyer (essential step)
- Verify clean title through Ministry of Housing records
- Confirm ownership structure (freehold vs leasehold, remaining term)
- Check for mortgages, liens, or encumbrances
- Review all legal documents (title deed, leasehold agreement, community bylaws)
Physical Inspection:
- Hire qualified property inspector (OMR 200-500)
- Assess structural integrity, systems, potential issues
- Identify required repairs or maintenance
- Verify municipality compliance and building permits
Financial Verification:
- Confirm no outstanding service charge arrears
- Review community reserve fund adequacy
- Check for pending special assessments
Step 4: Financing (If Applicable) (3-4 Weeks Concurrent)
Mortgage Options for Foreigners (2025):
- Loan-to-value: Up to 70% for expatriates/foreign buyers
- Down payment: Minimum 30% required
- Interest rates: Currently 3.5-5% annually
- Terms: Up to 25 years (must be repaid by age 60-65)
- Income requirements: Minimum salary thresholds vary by bank
Required Documentation:
- Passport and residence visa (if applicable)
- Proof of income (salary certificates, bank statements for 6 months)
- Property documents (title deed, sale agreement)
- Proof of down payment source
- Bank-arranged property valuation
Banks Offering Foreign Buyer Mortgages:
- Bank Muscat
- National Bank of Oman (NBO)
- Oman Arab Bank
- HSBC Oman
- Bank Dhofar
Step 5: Sale Agreement (1 Week)
Contract Finalization:
- Lawyer drafts or reviews sale and purchase agreement
- All terms confirmed: price, payment schedule, completion date, inclusions
- Seller warranties and buyer protections documented
- Default provisions and termination rights clarified
Critical: Never sign without lawyer review. Unsigned contracts can be modified; signed contracts are binding.
Step 6: Completion and Transfer (1-2 Weeks)
Final Payments:
- Arrange international wire transfer if funding from abroad (allow 3-5 business days)
- Bank releases mortgage funds if financed
- Confirm all anti-money laundering checks complete
Completion Meeting:
- All parties attend (buyer, seller, lawyers, bank rep if mortgage)
- Final documents signed
- Balance of purchase price paid
- Title deed transferred to buyer's name
- Keys and possession handed over
Step 7: Registration (1-2 Weeks)
Official Registration:
- Lawyer registers transfer with Ministry of Housing
- Municipality updated for property tax purposes
- Mortgage registered on title if financed
- Original title deed issued to buyer (or held by bank if mortgage)
2025 Regulatory Updates and Changes
Recent Policy Enhancements
What's New in 2025:
- Expanded ITC designations: New areas receiving freehold status under Oman Vision 2040
- Streamlined registration: Digital title transfer reducing completion timelines
- Enhanced buyer protections: Stronger escrow requirements for off-plan purchases
- Clearer leasehold framework: Standardized renewal provisions for long leases
- Foreign buyer financing: More banks offering competitive rates to expatriates
Oman Vision 2040 Impact
The government's long-term development plan continues to expand foreign property ownership opportunities:
- Additional ITCs planned along Muscat coastline
- Infrastructure investment enhancing property values
- Tourism growth supporting rental demand
- Regulatory clarity improving market transparency
Total Cost Analysis for Foreign Buyers (2025)
Purchase Price
Your primary investment, but not your only cost.
Transaction Costs
Registration Fees:
- Approximately 3% of purchase price
- Non-negotiable government fee
- Paid at title transfer
Legal Fees:
- OMR 500-1,500 for standard residential transactions
- Essential protection for foreign buyers
- Covers title verification, contract review, completion
Property Inspection:
- OMR 200-500 depending on property size
- Critical for identifying defects before purchase
Valuation (if financing):
- OMR 100-300
- Bank-arranged for mortgage approval
Mortgage Fees (if financing):
- Processing: 0.5-1% of loan amount
- Mortgage insurance often required
Total Transaction Costs: Budget 5-8% of purchase price beyond property cost.
Ongoing Costs
- Service charges: OMR 15-60 monthly (varies by property/community)
- Municipality fees: ~5% of annual rental value
- Insurance: OMR 100-500 annually
- Utilities: Electricity, water, internet
- Maintenance: Ongoing repairs and upkeep
Tax Implications for Foreign Buyers
Excellent News: Minimal Taxation
No Taxes on:
- Income tax: No personal income tax in Oman
- Capital gains tax: No tax on property sale profits
- Inheritance tax: No estate or inheritance taxes
- Rental income tax: No income tax on rental earnings
Applicable Fees:
- Municipality fees: ~5% of annual rental value (whether rented or owner-occupied)
- Registration fees: 3% at purchase (one-time)
Home Country Considerations:
- Consult tax advisor in your country of residence
- Some countries tax worldwide income (including Oman rental income)
- Capital gains may be taxable in your home country even if not in Oman
Rights and Restrictions for Foreign Owners
What You Can Do
- Occupy: Live in property as primary or vacation residence
- Rent: Lease to tenants (no restrictions on tenant nationality)
- Sell: Transfer ownership to another buyer freely
- Mortgage: Use as collateral for bank loans
- Renovate: Modify within building regulations and approvals
- Inherit: Pass to heirs through will or inheritance laws
Restrictions to Understand
- Usage restrictions: Residential properties cannot be converted to commercial use
- Community rules: ITC properties subject to community bylaws and architectural guidelines
- Rental regulations: Must register rental contracts with authorities
- Building modifications: Major renovations require municipality approvals
Residence Visa Through Property Investment
Property-Based Residence Programs (2025)
Foreign property owners may qualify for Oman residence visas:
Investment-Based Residence:
- Property purchase above minimum threshold (consult immigration authorities for current requirements)
- Residence permit for buyer and immediate family
- Renewable as long as property ownership maintained
- Does not lead to citizenship but enables long-term residence
Benefits of Residence Visa:
- Legal residence in Oman
- Ability to open bank accounts more easily
- Access to resident services and amenities
- Potential access to Oman healthcare and education systems
Application Process:
- Engage immigration lawyer or advisor
- Submit property ownership documentation
- Provide personal documents (passport, photos, medical clearance)
- Pay visa fees
- Processing typically 2-4 weeks
Common Questions from Foreign Buyers
Can I Buy Property Without Visiting Oman?
Technically yes, through power of attorney to legal representative, but strongly discouraged. Always view properties in person and attend key meetings when possible.
Can I Buy in My Company's Name?
Yes, corporate ownership is permitted. Requires company documentation and may involve additional legal steps. Consult lawyer for structure advice.
What If I Want to Sell Later?
Foreign owners can sell freely to any eligible buyer (foreign or Omani). No government approvals required. Same transaction process applies in reverse.
Are There Currency Controls?
No. Oman has no currency controls. Foreign buyers can freely transfer funds in and out for property purchases, rental income repatriation, or sale proceeds.
Can I Rent Out My Property Short-Term (Airbnb)?
Short-term rentals are permitted in many communities but check specific ITC rules and municipality regulations. Some communities restrict short-term lettings. Long-term rentals (1+ year) are unrestricted.
Why Foreign Buyers Choose Oman in 2025
Investment Appeal
- Stable returns: Rental yields of 5-9% annually
- Capital appreciation: Steady growth in established areas
- Tax advantages: No income, capital gains, or inheritance taxes
- Currency stability: Omani Rial pegged to US Dollar (stability for international buyers)
- Growing tourism: Vision 2040 driving increased demand
Lifestyle Benefits
- Safety and stability: One of world's safest countries
- Natural beauty: Beaches, mountains, deserts within short distances
- Modern infrastructure: World-class facilities and amenities
- Cultural richness: Authentic Arabian heritage with modern conveniences
- Strategic location: Gateway between Europe, Asia, Africa
Quality of Life
- Weather: Year-round sunshine with mild winters
- Healthcare: High-quality medical facilities
- Education: International schools for expatriate families
- Community: Welcoming, diverse population
- Cost of living: Competitive compared to other Gulf states
Next Steps for Foreign Buyers
Buying property in Oman as a foreigner in 2025 is straightforward, transparent, and increasingly attractive. The combination of clear regulations, competitive pricing, strong rental yields, and excellent lifestyle makes Oman one of the Gulf's most appealing property markets for international buyers.
Key Insight: The foreign buyers who achieve the smoothest transactions and best outcomes are those who engage qualified professionals early, conduct thorough due diligence, and approach the process with patience and realism.
Your Action Plan
- Clarify objectives: Investment income vs lifestyle vs both
- Establish budget: Purchase price plus 8-10% for transaction costs and buffer
- Research locations: Freehold ITCs vs leasehold established neighborhoods
- Engage professionals: Property consultant and legal counsel
- Visit Oman: View properties, assess neighborhoods, meet advisors
- Conduct due diligence: Never skip legal verification and property inspection
- Complete purchase: Follow structured process with professional support
Ready to explore Oman's property market as a foreign buyer? At Luxe Properties, we specialize in guiding international buyers through successful Oman property acquisitions. We understand the unique concerns foreign buyers face and provide end-to-end support including property identification, legal coordination, financing assistance, and post-purchase management.
Contact us today for a confidential consultation about buying property in Oman—we'll help you navigate the 2025 market with clarity and confidence.
Frequently Asked Questions
Q: Can any foreigner buy property in Oman?
A: Yes, citizens of virtually all countries can purchase property in Oman. Freehold ownership is available to foreigners in designated ITCs, while leasehold (50-99 years) is available in established neighborhoods. No residency requirement.
Q: What's the minimum investment required?
A: There's no official minimum, but practical entry points are OMR 50,000-60,000 for apartments in ITCs or leasehold established areas. Budget an additional 8-10% for transaction costs and furnishing.
Q: How long does the buying process take in 2025?
A: Typically 2-3 months from property identification to registered ownership. Digital registration initiatives in 2025 have streamlined some steps, but due diligence and financing (if applicable) still require 4-7 weeks combined.
Q: Can I get a mortgage as a non-resident foreigner?
A: Yes. Several Omani banks offer mortgages to foreign buyers (both residents and non-residents). Expect maximum 70% LTV, 30% down payment required, interest rates 3.5-5%, and income verification requirements.
Q: Do I pay taxes on rental income in Oman?
A: No. Oman has no personal income tax, so rental income is not taxed. However, municipality fees of ~5% of annual rental value apply. Consult your home country tax advisor about potential tax obligations there.
Q: Can I sell my property anytime?
A: Yes. Foreign owners can sell freely to any eligible buyer (Omani or foreign) with no government approvals required and no capital gains tax. The same transaction process applies in reverse.
Q: What happens to my property when I die?
A: Both freehold and leasehold property can be inherited by heirs through your will or applicable inheritance laws. No inheritance tax applies. Your heirs receive the property with same ownership terms (remaining lease term for leasehold).
Q: Are there any hidden costs foreign buyers should know about?
A: The main costs are transparent: purchase price, registration fees (3%), legal fees (OMR 500-1,500), inspection (OMR 200-500), ongoing service charges (OMR 15-60/month), and municipality fees (5% of rental value). Budget 8-10% above purchase price for transaction and setup costs.
Q: Can I buy property in Oman if my home country doesn't allow foreigners to buy property there?
A: Yes. Oman's property ownership rules are independent of reciprocal agreements. Your ability to buy in Oman is not affected by your home country's policies toward foreign buyers.
