Buying Property In Oman: Legal Guide For Foreign Investors

Oman’s real estate sector has attracted increasing interest from foreign investors and buyers, particularly in Integrated Tourism Complexes (ITCs) and modern residential developments. However, foreign ownership of property in Oman is subject to a special legal framework that differs from the general property system applicable to Omani nationals.

Oman’s real estate regulatory framework has also continued to develop in recent years, including through the introduction of the new Real Estate Registry Law in 2026, which introduced changes relating to electronic title deeds (Mulkiya), preliminary registration for off-plan property developments, and the continued modernisation of property registration procedures.

This guide outlines the main legal and practical issues foreign buyers should understand before purchasing property or investing in the Omani real estate market.

Can Foreigners Own Property in Oman?

As a general rule, Omani law restricts foreign ownership of land and real estate in many parts of the Sultanate. However, foreigners may acquire property rights in specific cases and projects governed by special legal regulations.

This is mainly possible through:

•  ownership within Integrated Tourism Complexes (ITCs); or 
•  obtaining long-term usufruct rights over certain residential units in approved multi-storey residential and commercial buildings, subject to specific legal conditions. 

What Are Integrated Tourism Complexes (ITCs)?

Integrated Tourism Complexes are government-approved tourism and real estate developments that typically include:

•  residential units, 
•  hotels and hospitality facilities, 
•  restaurants and cafés, 
•  leisure and sports facilities, 
•  and commercial and service areas. 

Under the ITC system, foreign individuals and companies may own residential units or land designated for construction or investment purposes within the approved project.

What Is the Difference Between ITC Ownership and Usufruct Rights?

It is important to distinguish between the two systems, as many buyers confuse them.

First: Ownership within ITCs

Under this system, a foreign buyer may:

•  own property or land within the project, 
•  sell the property, 
•  transfer it by inheritance, 
•  mortgage it, 
•  or use it for investment purposes, subject to the project rules and applicable laws. 

This system is generally treated as full property ownership within the approved development.

Second: Usufruct Rights in Multi-Storey Buildings

Under this system, the foreign buyer does not acquire ownership of the land itself. Instead, the buyer obtains:

•  a long-term registered usufruct right over a specific residential unit. 

This system is subject to several conditions, including:

•  a minimum residency period in Oman before applying, 
•  minimum age requirements, 
•  limitations on the number of units, 
•  nationality quotas within the project, 
•  and minimum property value requirements. 

The usufruct right is granted for a fixed term, although it may be renewed within the limits permitted by law.

Can Foreigners Buy Property Anywhere in Oman?

No. Omani law restricts foreign ownership in several strategic or protected areas, while preserving the special rules applicable to ITCs.

Restricted areas include certain governorates, wilayats, islands, agricultural areas, heritage locations, and areas connected to security or strategic interests.

Accordingly, buyers should always verify the legal status of both the property and the location before proceeding with a property transaction.

Does Buying Property Grant Residency in Oman?

Ownership of property in certain approved developments may qualify the buyer for residency in Oman, subject to the immigration and investment rules in force at the time of application.

Residency eligibility may depend on:

•  the type of project, 
•  the value of the property, 
•  and the nature of the investment. 

Because residency regulations may change from time to time, buyers should always confirm the latest applicable requirements before purchasing.

How Does the Purchase Process Usually Work?

The process may vary depending on the type of project, but generally includes:

1. Selecting the property or development. 
2. Reviewing the legal status of the project. 
3. Signing the reservation or sale agreement. 
4. Completing the required regulatory approvals, registration procedures, and property documentation requirements. 
5. Paying registration fees and registering the transaction with the Land Registry. 
6. Issuance of the title deed (Mulkiya) or registration of the usufruct right, depending on the structure of the transaction. 

In some cases, the process may be completed through a legal power of attorney without the buyer being physically present in Oman.

Under the new Real Estate Registry Law, Oman has also introduced additional mechanisms relating to electronic title deeds (Mulkiya) and preliminary registration for certain off-plan property developments, reflecting the continued modernisation of the property registration system.

Can Foreigners Obtain Mortgage Financing?

Some Omani banks and financial institutions offer mortgage financing to foreign buyers in approved developments.

Financing terms may vary depending on:

•  nationality, 
•  residency status, 
•  the type of project, 
•  and the internal policies of the financing institution. 

Buyers are generally advised to review financing options at an early stage of the transaction.

Can the Property Be Rented Out?

In many developments, owners may rent out their property for long-term residential use or, in some cases, for short-term or tourism-related purposes.

However, some projects may impose:

•  restrictions on short-term rentals, 
•  operational or management requirements, 
•  or specific rules regarding the use of the property. 

Accordingly, buyers should review the project regulations and owners’ association rules before purchasing.

Are There Restrictions on Resale or Transfer?

Some projects or contractual arrangements may impose restrictions on resale or transfer during a specific period, particularly in certain usufruct arrangements or developments linked to regulatory incentives.

Under some usufruct schemes, disposal of the unit may not be permitted until a specified period has passed from the registration date, unless a special exemption is obtained.

What Fees and Costs Should Buyers Expect?

Property transactions in Oman may involve additional fees and costs, including:

•  government registration fees, 
•  service and maintenance charges, 
•  project or owners’ association fees, 
•  financing-related costs, 
•  and legal or administrative expenses connected to the transaction. 

These costs may vary depending on the type of project and the nature of the property.

What Should Be Reviewed Before Buying?

Foreign buyers are strongly advised to carry out proper legal due diligence before purchasing property, particularly in investment projects or developments marketed internationally.

Important matters to review include:

•  the legal status of the project, 
•  the real estate developer’s track record and legal standing, 
•  title and land status, 
•  project rules and owners’ association regulations, 
•  service and maintenance fees, 
•  resale and leasing restrictions, 
•  limitations on property use, 
•  preliminary registration status for off-plan property developments, 
•  registered court restrictions, annotations, or attachments affecting the property, 
•  and the structure for managing common areas and facilities. 

In some projects, important rights and obligations may arise from project development agreements or internal project regulations, rather than from general legislation alone.

The new registry framework may also make it easier for buyers and financing banks or lenders to identify certain court-related restrictions, attachments, or registration issues affecting a property before completing a transaction.

Buyers purchasing off-plan units should also review the project’s registration status, applicable escrow or payment arrangements, and whether the unit has been recorded within the preliminary real estate registry where applicable.

What About Inheritance and Wills?

Inheritance and succession planning are important considerations for foreign property owners.

In certain ITC ownership structures, Omani law allows inheritance and succession matters relating to the property to be governed by the laws of the owner’s home country.

Foreign buyers are therefore advised to obtain legal advice regarding:

•  wills, 
•  ownership structuring, 
•  and succession planning for the transfer of property to heirs. 

Can Foreign Companies Own Property in Oman?

Foreign companies may own land and real estate units within Integrated Tourism Complexes (ITCs) for residential or investment purposes.

Some investors choose to acquire property through corporate or investment structures for reasons related to investment planning, asset management, or ownership structuring.

However, the use of the property and the nature of the related activity may give rise to additional legal, regulatory, and tax considerations, particularly where the property is used as part of a rental business or other organised commercial activity in Oman.

Accordingly, obtaining legal advice before proceeding is recommended in order to assess the most suitable legal and regulatory structure for each case.

Who Are the Main Parties Involved in a Property Transaction?

A property transaction in Oman may involve several parties, including:

•  the buyer, 
•  the real estate developer or seller, 
•  the Ministry of Housing and Urban Planning, 
•  financing banks or lenders (if applicable), 
•  real estate brokers, 
•  and lawyers or legal advisors. 

The role of each party may vary depending on the project and transaction structure.

How Can Bait Al Qanoon Assist?

At Bait Al Qanoon, we assist foreign investors and buyers throughout the various stages of property acquisition in Oman, including:

•  reviewing sale and project development agreements, 
•  conducting legal due diligence on the property or project, 
•  reviewing project regulations and owners’ association rules, 
•  advising on ownership and usufruct structures, 
•  assisting with wills, inheritance, and ownership structuring, 
•  coordinating with real estate developers and government authorities,
•  assisting with powers of attorney and remote transactions, 
•  and helping clients reduce legal and commercial risks associated with property investments. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.