Thanks to the growing tourism sector and government initiatives, Oman’s real estate market is on the rise. Buying a property in Oman becomes a great opportunity for investors who are thinking about getting high returns or receiving Oman’s investor residency (Oman Golden Visa).
In this guide, we’ll cover the key aspects of acquiring property in Oman, the main financial considerations, the legal framework, and explain how to buy a property that can lead to residency.
- As a foreigner, you can only buy property in Oman in Integrated Tourism Complexes (ITCs) or other specified areas.
- Before purchasing real estate in Oman you need to consider property prices, taxes and fees, mortgage and financing options, and service charges.
- The main benefits of buying real estate in Oman are an opportunity to get residency, Oman’s favorable tax system, fast banking services, and a future growth potential.
Overview of Oman's Real Estate Market
Living in Oman is considered one of the most attractive options for investors. In fact, according to Numbeo, the high quality of life index in Oman is very high, 209 out of 240. This makes Oman a great place both for investors and tourists.
On the other hand, Statista states that by the end of 2024, Oman’s real estate market will reach $298.60 billion. Residential real estate, which is the leading segment, has a projected volume of $214.40 billion for 2024. During the next 5 years, this segment is expected to have an annual growth rate of 3.70% and reach $358.00 billion by 2029.
Thanks to the government's Vision 2040 strategy, which is aimed at reducing reliance on oil, the commercial property segment is also experiencing growth. Vision 2040 strategy aims to make lots of investment in infrastructure, logistics, tourism, and manufacturing, increasing the demand for commercial and industrial properties.
Legal Framework for Foreign Buyers in Oman
As a foreign investor, before buying real estate in Oman, you should have a closer look at its legal framework. Here are some key points to consider:
- Foreign buyers are allowed to buy a property that’s located in Integrated Tourism Complexes (ITCs). This is done to attract international investments and enhance urban development in the country.
- Within ITCs, foreign investors can buy a property on a freehold basis, which gives them full ownership and all the rights that are given to Oman citizens. Some of the freehold areas are:some text
- Muscat Governorate: Al Mouj and Sultan Haitham City.
- Dhofar Governorate: Salalah.
- Muscat Shores with Tourism Property: i.e. Marriott Residence, Aida, Oman.
- The property must meet all the legal requirements regarding registration, construction, and ownership.
- The buyer needs to provide all the necessary documents such as passport copies and proof of financial capabilities.
- The buyer should receive all the necessary approvals from the government or relevant authorities.
Residency and Citizenship Opportunities Through Property Investment
Oman doesn’t currently offer a program that grants a real estate investor with citizenship. However, in September 2021, Oman launched the Oman Golden Visa Program (Oman Investment Residency Program). This program aims to attract foreign investors to contribute to Oman’s economy and, in exchange, grants them residency. By investing 250,000 Omani rials in residential real estate, you can obtain a 5-year Oman Golden Visa, and by investing 500,000 Omani rials, you can get a 10-year Oman Golden Visa.
As an applicant, you need to:
- Be at least 21 years old
- Have a clean criminal record
- Be a good character
- Have a valid health insurance (for yourself, and if your family members apply, for them as well)
- Have proof of sufficient funds required for the minimum amount of investment required for an Oman residence visa
Step-by-Step Guide to Buying Property in Oman
Step 1: Contact a professional։ Currently the eligible Properties are very limited. The process of learning about Oman’s real estate market, finding the right property, preparing all the necessary documents, and applying for a residency by investment program in Oman may be a tough challenge, that’s why it’s advisable to contact Mirabellp Consultancy's experts who will help you through the entire process.
Step 2: Meet the requirements: It is important to note that the minimum amount of investment will vary depending on the timeslot you want to be granted residency (5 or 10 years). Let's explore how to get a Golden Visa in Oman for both durations.
5-year visa
You need to invest at least 250,000 Omani rials in one of the following ways:
- Open or buy a company
- Buy a real estate
- Buy government bonds
10-year visa
You need to invest at least 500,000 Omani rials in one of the following ways:
- Open or buy a company
- Buy a real estate
- Buy government bonds
Step 3: Gather all the Necessary Documents
Step 4: Submit the Application
Step 5: Wait for the Approval
Schedule your free consultation today and secure your future!
Financial Considerations for Property Buyers in Oman
Buying a property in Oman requires learning about the following financial considerations:
1. Property Prices
Based on the location and the type of property, real estate prices will be different. Here are the most popular locations and average price per sqm.
2. Taxes and Fees
There are no annual property taxes in Oman. However, you need to pay a 3% transfer fee based on the property's sale price.
3. Mortgage and Financing Options
Some local banks like Ahli Bank, NBO, Bank Sohar, Bank Muscat, and Bank Dhofar Oman offer mortgage loans to both Oman citizens and foreigners. This makes buying property in Oman for expats easier. However, as a foreigner, you need to consider the following:
- The loan tenure varies from 15 to 25 years (depending on the borrower’s age and financial status)
- Mortgage interest rates in Oman are annually 4-7%.
- For Oman citizens, the loan to value (LTV) is up to 90%, whereas for foreigners it’s typically 70-80%.
4. Service Charges
In some of the ITCs, there may be service charges for facilities such as gyms, swimming pools and security.
Benefits of Investing in Oman's Property Market
There are many benefits of buying property in Oman. Some of them are:
1. Getting Residency
You can receive a residency permit if you invest a certain amount of money in Oman's real estate market. Investing 250,000 Omani rials in one of the following options will grant you a 5-year residency:
- Open or buy a company
- Buy a real estate
- Buy government bonds
By investing 500,000 Omani rials, you’ll receive a 10-year residency permit.
2. Fast access to Banking Services
Buying property in Oman leads to a fast bank account opening with an Omani bank. This will allow for financial security to move funds quickly and effortlessly all with a click of a button from anywhere in the world.
3. Favorable Tax System
Buying property in Oman is very beneficial, as there is no capital gains tax for personal purchases. In addition, the main tax associated with buying property in Oman is the property transfer tax which is only 3% of the property’s sale price.
4. Favorable Market
Another benefit of investing in Oman’s real estate market is its affordable prices. For example, in its capital, Muscat, the average price per square meter ranges from 800-1000 Omani Rials (2080-2600 USD). Compared to other CGI countries, property prices in Oman are relatively lower, making this country an attractive option.
5. Growth Potential
Thanks to an increasingly high number of tourists, Oman’s real estate market is on the rise. With nearly three million tourists in 2022, the tourism sector continues to grow. Moreover, the government is investing $51 bn in the tourism sector, expecting a high influx of tourists. This states that there will be significant opportunities to rent out properties and receive high returns.
To sum it up, in this article we’ve given an overview of Oman’s real estate market, listed the benefits of buying a property in Oman, and explained how to get residency there.
By carefully learning the property prices, legal framework, and financial options, investors can successfully acquire a property and take advantage of Oman’s real estate market.
FAQ
There is a property transfer tax in Oman that’s 3% of the property's value.
If you meet eligibility criteria and buy a real estate worth 250,000 Omani rials, you’ll receive a 5-year residency. If the property is worth 500,000 Omani rials, the residency will be granted for 10 years.
The process of buying a property in Oman usually takes only several weeks.
The most popular locations for real estate investment are Muscat, Salalah, Sohar, and Nizwa.
Oman isn’t considered a tax-free country for property investors. However, it’s a tax-friendly country, which does not impose capital gains, or property tax and has a low rate of VAT, property transfer fee, and stamp duty.
