How to buy land in Oman (guide)

Last updated on June 19, 2025

Authored by the expert who managed and guided the team behind the Oman Property Pack

Everything you need to know before buying real estate is included in our Oman Property Pack

Buying land in Oman as a foreigner is possible but comes with specific restrictions and procedures that require careful navigation. Foreign land ownership in Oman is primarily limited to designated Integrated Tourism Complexes (ITCs) where freehold ownership is permitted, while most other areas restrict foreigners to leasehold arrangements or require local partnerships.

If you want to go deeper, you can check our pack of documents related to the real estate market in Oman, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Foreigners can buy freehold land in designated ITCs like Al Mouj Muscat and Muscat Hills, with property values ranging from OMR 150,000 to OMR 2 million depending on location and size.

The complete process typically takes 6-12 weeks and includes obtaining a No Objection Certificate, paying 3-5% in registration fees, and qualifying for a renewable 2-year residency visa upon completion.

Ownership Type	Locations Available	Requirements	Typical Costs
Freehold	ITCs (Al Mouj, Muscat Hills, Jebel Sifah)	No restrictions for foreigners	OMR 150,000 - OMR 2,000,000
Leasehold Commercial	Commercial zones nationwide	30% Omani partnership or govt approval	OMR 50,000 - OMR 500,000
Restricted Areas	Agricultural, military, border zones	Not available to foreigners	N/A
Registration Fees	All locations	3-5% of property value	OMR 4,500 - OMR 100,000
Legal Costs	All transactions	1-2% of property value	OMR 1,500 - OMR 40,000
Agent Fees	When using agents	Typically 5% of sale price	OMR 7,500 - OMR 100,000
Residency Visa	ITC property owners	2-year renewable visa	OMR 500 - OMR 1,000 annually

Who is the author of this content?

SANDSOFWEALTH

A team specialized in real estate investing in MENA countries (Oman, UAE, Saudi Arabia, Egypt, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Oman. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At SandsOfWealth, we explore the Omani real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Muscat, Salalah, and Sohar. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of land can foreigners legally buy in Oman and what are the restrictions?

Foreigners can legally purchase freehold land only in designated Integrated Tourism Complexes (ITCs) across Oman.

The main ITCs where foreigners enjoy unrestricted freehold ownership include Al Mouj Muscat, Muscat Hills, Jebel Sifah, Saraya Bandar Jissah, and Salalah Beach Resort. These developments specifically cater to international buyers and offer modern amenities with clear legal frameworks for ownership.

Outside ITCs, foreigners can acquire commercial and industrial land through leasehold arrangements or usufruct rights, but typically require either a company with at least 30% Omani ownership or government approval for the specific project. Agricultural land remains completely off-limits to foreign ownership, as do military zones and areas near national borders or other sensitive locations.

As of June 2025, residential land in ITCs represents approximately 85% of all foreign land purchases in Oman, with plot sizes ranging from 600 to 2,000 square meters and prices between OMR 150,000 and OMR 2 million depending on location and amenities.

Which specific zones and locations allow foreigners to buy land most easily?

Al Mouj Muscat stands as the most popular destination for foreign land buyers, offering beachfront plots and established infrastructure just 15 minutes from Muscat International Airport.

Muscat Hills provides mountain-view residential plots with golf course access, while Jebel Sifah offers coastal development opportunities about 45 minutes from central Muscat. Salalah Beach Resort in the south attracts buyers seeking tropical climates and tourism-focused investments.

The emerging Yiti development represents the newest opportunity for foreign land acquisition, featuring mixed-use zones that combine residential and commercial potential. Each location offers different price points, with Al Mouj commanding premium prices due to its prime location and established community.

Government-approved commercial zones in Muscat, Sohar, and Salalah also permit foreign land acquisition for business purposes, though these typically require higher investment thresholds and additional approvals compared to ITC purchases.

It's something we develop in our Oman property pack.

What is the complete step-by-step process for foreigners to buy land in Oman?

Step	Action Required	Timeframe	Typical Cost
1. Property Identification	Choose land in ITC or approved zone	1-4 weeks	OMR 0 (research)
2. Professional Engagement	Hire licensed agent/lawyer	1 week	1-2% of property value
3. Property Reservation	Pay reservation deposit	1-2 days	10% of purchase price
4. Sale Agreement	Sign Sale & Purchase Agreement	1 week	Included in legal fees
5. NOC Application	Obtain No Objection Certificate	2-4 weeks	OMR 500-1,000
6. Due Diligence	Verify title and legal status	1-2 weeks	OMR 500-2,000
7. Payment	Transfer remaining purchase amount	1-3 days	Bank transfer fees
8. Registration	Register with Ministry, receive title	2-3 weeks	3-5% registration fee
9. Residency Application	Apply for property owner visa	4-6 weeks	OMR 500-1,000

What documents and approvals do foreigners need for land purchase?

The essential documentation package starts with a valid passport copy and comprehensive proof of funds through recent bank statements or investment portfolio documentation.

The No Objection Certificate (NOC) from the Ministry of Housing and Urban Planning represents the most critical approval, confirming the government's permission for the specific land transaction. This document typically requires 2-4 weeks to obtain and costs between OMR 500-1,000 depending on property value.

A properly executed Sale and Purchase Agreement (SPA) must detail all transaction terms, payment schedules, and completion deadlines. For existing properties, sellers must provide clear title deeds, while new developments require approved master plans and completion guarantees from developers.

Foreign companies purchasing land need additional documentation including commercial registration certificates, board resolutions authorizing the purchase, and detailed company ownership structures. Property valuation reports from licensed Omani valuers are mandatory for transactions exceeding OMR 100,000.

As of mid-2025, the average documentation preparation time runs 3-6 weeks, with legal costs typically ranging from 1-2% of the total property value for comprehensive document review and preparation services.

Can foreigners buy land in Oman without being physically present?

Remote land purchases are legally possible through power of attorney arrangements and trusted local representatives.

The entire process from property selection through initial contracts can be handled remotely using digital communication and electronic document signing. Most developers and established real estate agencies offer comprehensive remote purchase services, including virtual property tours and video conferences with legal professionals.

However, physical presence becomes necessary for final property registration with the Ministry of Housing and Urban Planning, though some buyers arrange brief visits specifically for this purpose rather than being present throughout the entire process. Residency visa applications also typically require the buyer's physical presence in Oman.

Power of attorney arrangements cost approximately OMR 500-1,500 to establish properly, and buyers should ensure their representative holds appropriate real estate licenses and professional indemnity insurance. Many successful transactions involve buyers visiting Oman only once for final registration and key handover.

What are the taxes, fees, and legal costs involved in buying land?

Property registration fees represent the largest single cost beyond the purchase price, typically ranging from 3-5% of the total property value paid directly to the government.

Legal fees for comprehensive transaction management average 1-2% of property value, covering contract review, due diligence, and registration assistance. Real estate agent commissions standard at 5% of the sale price when using professional services, though some buyers negotiate lower rates for cash transactions.

Annual property taxes in Oman remain minimal or non-existent for most ITC properties, while commercial land may incur modest annual fees based on rental value assessments. Importantly, Oman imposes no capital gains tax on property sales, making it attractive for investment purposes.

Additional costs include property valuation reports (OMR 500-2,000), NOC application fees (OMR 500-1,000), and bank transfer charges for international payments. Total transaction costs excluding purchase price typically range from 8-12% of property value for foreign buyers using professional services.

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Can foreigners buy land with cash or are there financing restrictions?

Foreign buyers can purchase land in ITCs outright with cash payments, which represents the most straightforward transaction method.

Omani banks generally require residency status to offer mortgage financing, making it challenging for non-residents to secure local loans. However, residents can access mortgages covering up to 80% of property value with terms extending to 25 years and interest rates starting around 7% annually.

International financing options include loans from banks in the buyer's home country secured against the Omani property, though this requires careful legal structuring to ensure enforceability. Some developers offer internal financing arrangements for qualified buyers, particularly for larger developments or multiple plot purchases.

Developer financing typically carries higher interest rates (8-12%) but offers more flexible qualification criteria and faster approval processes compared to traditional bank mortgages. Cash purchases remain preferred by most foreign buyers due to simplicity and often result in better pricing negotiations with sellers.

Do Omani banks provide mortgages to foreigners and what are the terms?

Omani banks primarily offer mortgages to resident foreigners rather than non-residents, with most institutions requiring proof of local employment or business income.

For qualified applicants, banks like Bank Muscat, National Bank of Oman, and HSBC Oman provide home loans up to 80% of property value with interest rates ranging from 6.5-9% depending on the applicant's profile and loan amount. Loan terms typically extend 15-25 years with monthly payment-to-income ratios capped at 50%.

Required documentation includes salary certificates, bank statements covering 6-12 months, employer letters, and comprehensive financial disclosure. Processing times average 4-8 weeks from application to approval, with faster processing for existing bank customers.

Some banks offer Islamic financing (Sharia-compliant) alternatives through diminishing musharaka or ijara structures, which can be attractive to buyers seeking compliant financing options. Mortgage insurance requirements and early payment penalties vary by institution but are generally reasonable compared to regional standards.

As of June 2025, typical mortgage rates for foreign residents start at 6.8% for prime borrowers with strong employment history in Oman.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Oman versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Are there visa or residency benefits for foreign land owners?

Property owners in ITCs automatically qualify for renewable two-year residency visas for themselves and immediate family members.

The property owner visa allows multiple entry and exit privileges, work authorization, and access to government services including healthcare and education. Renewal requires maintaining property ownership and paying annual fees of approximately OMR 500-1,000 depending on family size.

Larger investments qualify for extended investor residency programs, with OMR 250,000 investments eligible for 5-year visas and OMR 500,000 investments qualifying for 10-year residency status. These programs offer enhanced benefits including streamlined business licensing and reduced bureaucratic requirements.

However, Oman does not offer citizenship or permanent residency through property investment, regardless of investment amount or duration of ownership. Property-based residency remains contingent on continued ownership and compliance with renewal requirements.

Family members included in property-based residency typically include spouses and unmarried children under 21, with some flexibility for dependent parents in certain circumstances.

What do most foreigners use their land purchases for in Oman?

Personal residences represent approximately 60% of foreign land purchases, with buyers constructing custom homes or purchasing developer-built properties for full-time or seasonal living.

Investment and rental income generation accounts for about 25% of purchases, particularly in well-established ITCs like Al Mouj where rental yields range from 6-10% annually. Commercial and mixed-use developments attract investors seeking higher returns through retail, office, or hospitality projects.

Leisure and vacation home purposes comprise the remaining 15% of foreign purchases, often by buyers from neighboring GCC countries seeking cooler climates and different recreational opportunities. Some buyers combine personal use with rental income by using properties seasonally and renting during absent periods.

Agricultural land use remains unavailable to foreigners under current regulations, though some ITCs offer limited agricultural plots for residential landscaping and small-scale farming activities within approved development boundaries.

It's something we develop in our Oman property pack.

What common mistakes do foreigners make when buying land and how to avoid them?

1. **Purchasing outside approved zones** - Always verify the property lies within an ITC or government-approved area before committing to purchase.2. **Skipping professional due diligence** - Engage qualified local lawyers and surveyors to verify title, boundaries, and legal compliance before finalizing transactions.3. **Underestimating total costs** - Budget an additional 8-12% beyond purchase price for fees, taxes, and professional services to avoid financial surprises.4. **Ignoring building requirements** - Most ITCs require construction to begin within 4 years of purchase; failure to comply can result in property forfeiture.5. **Not understanding local regulations** - Building codes, architectural guidelines, and community rules vary significantly between developments and can impact intended use.6. **Relying on unqualified representatives** - Only work with licensed real estate agents and lawyers with specific experience in foreign property transactions.7. **Insufficient insurance coverage** - Arrange appropriate property and liability insurance before taking possession to protect against unforeseen circumstances.

What is the long-term outlook for land values and investment returns in Oman?

Oman's land market demonstrates stable growth patterns with moderate price appreciation averaging 3-5% annually in prime ITC locations over the past five years.

Government infrastructure investments including the expansion of Muscat International Airport, new highway projects, and tourism development initiatives support long-term value growth in established areas. The Vision 2040 economic diversification program emphasizes real estate and tourism as key growth sectors.

Rental yields in quality developments consistently range from 6-10%, with Al Mouj and Muscat Hills achieving the higher end of this range due to strong rental demand from expatriate professionals. Commercial land in strategic locations shows potential for higher returns but requires greater market expertise and higher initial investments.

Economic diversification efforts reducing dependence on oil revenues create a more stable foundation for real estate growth, while increasing foreign direct investment and expanding expatriate populations support sustained demand for quality properties.

As we reach mid-2025, market fundamentals remain positive with steady population growth, improving infrastructure, and government commitment to attracting foreign investment creating favorable conditions for long-term property appreciation and rental income generation.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Foreign land ownership in Oman offers genuine opportunities within designated zones, but requires careful navigation of legal requirements and local regulations.

Success depends on working with qualified professionals, understanding costs thoroughly, and choosing appropriate locations that align with investment goals and personal circumstances.