Buying and owning property in Muscat as a foreigner

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

Yes, the analysis of Muscat's property market is included in our pack

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, 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 Muscat. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, 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 kind of properties are foreigners actually allowed to buy in Muscat, and how does this compare with what locals or other nationalities can purchase?

Foreigners can only buy freehold property within designated Integrated Tourism Complexes (ITCs) and certain government-approved projects in Muscat.

The main ITCs where foreigners can purchase include Al Mouj Muscat, Muscat Hills, Saraya Bandar Jissah, and projects around Shangri-La's Barr Al Jissah Resort. These developments offer apartments, villas, and townhouses with full ownership rights.

Omanis have significantly broader property rights and can purchase residential, commercial, and agricultural property anywhere across the country. GCC nationals (citizens of Gulf Cooperation Council countries) have more extensive buying rights than non-GCC foreigners, though still more limited than Omani citizens.

Outside ITC zones, foreigners can only acquire usufruct rights through companies for long-term business projects, but this comes with usage restrictions and specific business purpose requirements. For substantial investments exceeding certain thresholds, foreigners may obtain special approval to buy outside ITCs, but this involves more stringent approval processes.

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

Do foreigners need to meet specific residency or visa requirements in order to own property?

Foreigners do not need existing residency to purchase property, but buying qualifying property within ITCs actually grants them residency rights.

The investment-based residency program requires minimum investments of OMR 250,000 for a 5-year renewable residency or OMR 500,000 for a 10-year renewable residency. This residency extends to the investor's spouse and first-degree relatives (children and parents).

To obtain residency through property investment, you must provide a valid passport, clean criminal record certificate, and proof of financial solvency. The residency permit remains valid as long as you maintain ownership of the qualifying property.

Before completing any property purchase, you may need to obtain a No Objection Certificate (NOC) from the Ministry of Housing, which serves as government approval for the transaction.

Is it necessary to be physically present in Oman to complete a property purchase, or can it be done remotely?

Physical presence in Oman is not mandatory to complete a property purchase.

You can execute the entire transaction remotely by appointing a legal representative with proper power of attorney to act on your behalf. This representative can handle document signing, registration with authorities, and payment processes.

All sale agreements must be properly notarized, and property registration with the Ministry of Housing is required regardless of whether you complete the process in person or remotely. The key requirement is ensuring your legal representative has valid authorization to act on your behalf.

Remote completion is particularly common among international investors who prefer to finalize transactions from their home countries before relocating or visiting Oman.

What is the step-by-step process to buy property as a foreigner, and which documents are required along the way?

The property purchase process for foreigners involves eight key steps with specific documentation requirements at each stage.

Step	Action Required	Documents Needed
1	Select property and verify eligibility	Property details, ITC confirmation
2	Obtain government approvals	NOC from Ministry of Housing
3	Make offer and negotiate terms	Financial proof, initial deposit
4	Sign formal sale agreement	Notarized purchase contract
5	Submit personal documentation	Passport, bank statements, legal affidavits
6	Register ownership	Title transfer, 3% registration fee payment
7	Obtain residency permit	Investment proof, medical certificates
8	Finalize payments and secure title	Full payment confirmation, final permits

Do I legally need to hire a lawyer or notary, and what role do they typically play in the transaction?

While not legally mandatory, hiring a lawyer is highly recommended for foreign property buyers in Muscat.

Lawyers provide essential services including title verification, contract drafting, due diligence on property liabilities, and handling registration with government authorities. They ensure all documentation meets legal requirements and protect your interests throughout the transaction.

A notary is required for formal document authentication, particularly for sale agreements and power of attorney documents if you're completing the purchase remotely. The notarization process ensures legal validity of contracts and signatures.

Legal representation becomes particularly valuable for foreigners unfamiliar with Omani property law, local procedures, and potential complications that could arise during the purchase process.

What are the taxes, fees, and hidden costs involved when buying, holding, and eventually reselling property in Muscat?

Property transactions in Muscat involve several fees and ongoing costs that foreign buyers must budget for beyond the purchase price.

The primary transaction cost is a 3% registration fee paid to the Ministry of Housing based on the property's purchase value. Additional government fees include OMR 500-1,300 for residency card processing and family sponsorship fees if applicable.

Ongoing holding costs include annual municipality taxes, community service charges specific to each ITC development, and maintenance fees that vary significantly by project. These can range from OMR 1-3 per square meter annually depending on amenities and services provided.

Legal representation, real estate agency commissions, and administrative fees typically add another 2-4% to the total transaction cost. When reselling, capital gains tax is generally not applied to individual property owners, but transaction costs and agent fees will apply again.

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

Can foreigners get a mortgage in Oman, what are the usual rates and conditions, and are there practical tips to improve approval chances?

Mortgages are available to foreigners purchasing property within ITCs, with several major Omani banks offering financing options.

Interest rates for foreign buyers typically range from 5-7% annually, with loan terms extending up to 10-20 years depending on the borrower's profile. Loan-to-value ratios are often lower for non-residents, commonly ranging from 70-80% of the property value.

To improve approval chances, demonstrate stable income through employment contracts or business documentation, maintain strong credit history, secure valid residency status, and choose properties within established ITCs that have partnerships with lending institutions.

Banks typically require comprehensive financial documentation including salary certificates, bank statements for 6-12 months, and proof of existing assets. Having an existing relationship with the bank or maintaining accounts in Oman can significantly enhance approval prospects.

What are the fiscal implications of owning property as a foreigner, both locally and in terms of potential double taxation with my home country?

Oman does not impose general property taxes on real estate ownership, but annual municipality and service fees apply to all property owners.

Rental income generated from your Muscat property may be subject to local taxation depending on how the income is structured and reported. The tax treatment can vary based on whether income is earned by individuals or through corporate structures.

Resale proceeds are generally not subject to capital gains tax for individual property owners, though this can change based on future tax policy developments. However, transaction costs and fees will apply during the sale process.

Double taxation risk depends entirely on tax treaties between Oman and your home country, as well as your residential tax status in both jurisdictions. Consulting with a cross-border tax specialist is essential to understand your specific obligations and optimize tax efficiency for both rental income and potential capital gains in your home country.

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.

Which areas in Muscat are the most popular among foreigners, and why do they tend to settle there?

Al Mouj Muscat, Muscat Hills, and Saraya Bandar Jissah represent the three most popular areas for foreign property buyers in Muscat.

Al Mouj Muscat attracts foreigners due to its comprehensive amenities including golf courses, marina facilities, international schools, shopping centers, and established expat community. The development offers a self-contained lifestyle with high-quality infrastructure and property management.

Muscat Hills appeals to families seeking integrated community living with recreational facilities, green spaces, and proximity to international schools. The development focuses on sustainable living and modern amenities while maintaining competitive pricing compared to premium coastal locations.

Saraya Bandar Jissah draws buyers interested in luxury coastal living with beach access, resort-style amenities, and proximity to five-star hospitality facilities. The location offers stunning natural scenery combined with premium property standards and exclusive community atmosphere.

Which neighborhoods currently offer the best mix of liveability, rental demand, and long-term capital appreciation, based on recent indexes, yields, and growth forecasts?

Al Mouj Muscat consistently demonstrates the strongest combination of liveability, rental demand, and capital appreciation potential among foreign-accessible areas.

1. **Al Mouj Muscat**: High rental yields due to strong expat demand, proven capital appreciation history, and comprehensive amenities supporting property values2. **Muscat Hills**: Growing international buyer interest, competitive rental market, and projected growth based on infrastructure development3. **Saraya Bandar Jissah**: Premium positioning supports long-term value appreciation, though rental yields may be lower due to higher purchase prices4. **Wave Muscat developments**: Emerging areas with potential for growth as infrastructure and amenities develop5. **Other established ITCs**: Solid performance but may have less growth potential compared to newer developments

Recent market analysis indicates Al Mouj properties have maintained stable rental demand with yields ranging from 6-8% annually, while showing consistent capital appreciation over the past five years. Muscat Hills is experiencing growing investor interest due to its family-friendly positioning and competitive pricing structure.

What is the current breakdown of average property prices across different parts of Muscat and other key regions of Oman?

As of September 2025, property prices within ITCs vary significantly based on location, property type, and amenities offered.

Location	Apartments (OMR/sqm)	Villas (Starting Price)
Al Mouj Muscat	800-1,300	OMR 400,000+
Muscat Hills	700-1,050	OMR 350,000+
Saraya Bandar Jissah	900-1,400	OMR 450,000+
Salalah ITCs	600-900	OMR 280,000+
Sohar ITCs	550-800	OMR 250,000+
Other Regional ITCs	500-750	OMR 220,000+

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

What are the most common mistakes and pitfalls foreigners make when buying property in Muscat, and how can they be avoided?

The most frequent mistake foreign buyers make is attempting to purchase property outside designated ITC zones without proper eligibility or approvals.

Many buyers fail to conduct thorough due diligence on development status, financial stability of projects, and long-term viability of proposed amenities. This can result in purchasing in incomplete or financially troubled developments.

Inadequate budgeting for ongoing costs represents another major pitfall, as buyers often underestimate annual service charges, maintenance fees, and other holding costs that can significantly impact investment returns.

Other common mistakes include purchasing properties with resale restrictions, buying in oversupplied markets, failing to secure proper mortgage pre-approval, and neglecting cross-border tax analysis for rental income and future resale proceeds.

To avoid these pitfalls, work exclusively with licensed real estate professionals, verify all project approvals and developer credentials, budget comprehensively for all costs, and obtain detailed legal and tax advice before committing to any purchase.

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.

Sources

1. Omani Lawyer - Buy Property in Oman
2. Tamimi Law - Foreign Ownership of Real Estate in Oman
3. Sands of Wealth - Oman Real Estate for Foreigners
4. Arab MLS - Foreigner Property Purchase in Oman
5. MK Muscat - Foreign Ownership of Real Estate
6. Bayat Group - Oman Residency Investment
7. Fanar - Buying Property in Oman for Foreigners
8. Mirabello Consultancy - Oman Investor Residency Guide
9. Invest Royal - Legal Procedures Buy Property Oman
10. Rest Property - Real Estate in Oman How to Buy and Cost