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 property in Oman as a US citizen is possible, but only in specific areas the government has opened to foreign ownership.
This guide breaks down everything you need to know about legal requirements, taxes, mortgages, and US tax implications for Americans buying residential real estate in Oman in 2026.
We constantly update this blog post to reflect the latest regulations and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Oman.
Can a US citizen legally buy residential property in Oman right now?
Can I buy a home in Oman as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Oman, but only within designated zones called Integrated Tourism Complexes (ITCs) where foreign ownership is explicitly permitted by law.
The standard buying process involves selecting a property in an approved ITC, signing a sale and purchase agreement (often bilingual), providing identity documents and proof of funds, and completing registration through the Ministry of Housing and Urban Planning.
This process is straightforward when you work with developers or agents experienced in foreign transactions, and many Americans complete purchases remotely with the help of a local lawyer before ever setting foot in the country.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Oman.
Are there many Americans buying property and living in Oman in 2026?
As of early 2026, the American expat community in Oman is relatively small compared to larger nationalities like Indians, Pakistanis, and Filipinos, with most estimates placing US citizens at a few thousand residents across the country.
American property buyers and expats in Oman tend to concentrate in Muscat-area ITCs, with Al Mouj (The Wave), Muscat Hills, Jebel Sifah, and the Qurum neighborhood being the most popular areas for US nationals seeking homes.
The top three reasons Americans choose to buy property in Oman include job opportunities in the energy and education sectors, the country's safety and quality of life, and the ability to own freehold property in well-developed ITC communities.
The American expat community in Oman appears stable with modest growth, driven mainly by professional opportunities and Oman's reputation as one of the most welcoming Gulf countries for Western residents.
Do foreigners have the same buying rights as locals in Oman?
Foreigners, including US citizens, do not have the same buying rights as Omani nationals since non-Omanis can only purchase property in designated ITCs, while locals can buy throughout the country with fewer restrictions.
Outside of ITCs, most residential property and land in Oman remains off-limits to foreign buyers, and even within ITCs, some specific plots or unit types may have additional developer-imposed conditions.
We cover all these things in length in our pack about the property market in Oman.
Can I buy property in Oman without a residence permit?
Yes, you can legally purchase property in Oman without a residence permit, as property ownership and residency status are handled as separate processes under Omani law.
Non-resident buyers typically work with a developer or lawyer to complete the purchase remotely, signing documents via power of attorney and transferring funds through international banking channels.
Buying property in Oman can support a residency application through official channels managed by the Royal Oman Police, though ownership alone does not automatically grant a visa or residency rights.
The main practical challenge non-resident buyers face is financing, since Omani banks generally require local residency and income documentation to approve a mortgage, which means most non-residents end up paying cash.
Can US citizens own land in Oman?
Yes, US citizens can own land in Oman, but only within Integrated Tourism Complexes where the ITC ownership law explicitly permits non-Omanis to own "lands or constructed units."
In ITCs, foreign buyers typically receive freehold-style ownership with strong title rights that allow resale and mortgage, while Oman also uses usufruct (long-term lease) arrangements in other contexts outside the ITC framework.
Outside of ITCs, foreign land ownership is generally not permitted, and even within ITCs, specific geographic zones or plot categories may have additional restrictions set by the developer or the project's master plan.
What documents will I need to buy in Oman?
The essential documents a US citizen needs to purchase property in Oman include a valid passport copy, a signed sale and purchase agreement, proof of funds (bank statements or source of funds letter), and developer documentation if buying a new build.
A local tax identification number is not typically required for individual foreign buyers in the same way as some countries, though you will go through identity verification steps during the property registration process with the Ministry of Housing.
A local Omani bank account is not strictly mandatory for the legal purchase itself, but it is highly practical for paying fees, utilities, and ongoing costs, and it becomes essentially required if you want to obtain a mortgage.
Foreign buyers should expect to provide proof of funds showing the source of money for compliance purposes, and while a local address is not always mandatory, you will need a reliable contact address for official notices and administrative communications.
We have a whole section dedicated to all the documents you need in our Oman property pack.
Can a foreign-owned company buy property in Oman?
Yes, foreign-owned companies can legally purchase residential property in Oman's ITCs, as the ITC ownership law explicitly allows ownership by "juridical persons" (legal entities) as well as individuals.
Some Americans do use company structures to hold property in Oman, typically for reasons like managing multiple owners, simplifying inheritance planning, or handling rental operations in a more business-like manner.
Owning property through a company does not automatically lower your tax burden in Oman since the main purchase costs are transaction fees rather than annual property taxes, and company ownership can actually increase your US reporting complexity under FATCA rules.
The main drawback of using company ownership for residential property in Oman is the added compliance burden, including additional US reporting requirements (like Form 5471 for foreign corporations) and ongoing administrative costs to maintain the entity.
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What taxes and fees will I pay in Oman in 2026?
What are buyer taxes in Oman in 2026?
As of early 2026, the main buyer tax in Oman is the real estate transfer and registration fee of approximately 3% of the property value, so on a 100,000 OMR home (about 260,000 USD or 240,000 EUR), you would pay around 3,000 OMR (7,800 USD or 7,200 EUR) in government fees.
The individual components include the 3% transfer fee (reduced from 5% in recent years) plus potential VAT at 5% on certain transactions, though VAT typically applies to first supplies from developers rather than resale purchases between individuals.
Buyer tax rates in Oman do not differ based on whether you are a foreigner or a local, and there is no distinction for primary residences versus investment properties in terms of the basic transfer fee structure.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Oman.
What are other closing costs in Oman in 2026?
As of early 2026, total closing costs excluding the transfer fee typically run between 3% and 5% of the purchase price, so on a 100,000 OMR property (260,000 USD or 240,000 EUR), budget an additional 3,000 to 5,000 OMR (7,800 to 13,000 USD or 7,200 to 12,000 EUR) on top of the government fee.
The main closing cost categories include real estate agent commissions at 2% to 3% (2,000 to 3,000 OMR on a 100,000 OMR home), lawyer or conveyancing fees at 0.5% to 1% (500 to 1,000 OMR), and if mortgaging, a valuation report costing 100 to 300 OMR (260 to 780 USD or 240 to 720 EUR).
The most negotiable closing costs are the real estate agent commission (which varies by agent and can sometimes be reduced on higher-value properties) and legal fees, which may be quoted as a flat fee rather than a percentage on smaller transactions.
The closing cost that tends to surprise foreign buyers the most in Oman is the 5% VAT that applies to services like agent fees and legal work, turning a 2% commission into effectively 2.1% once VAT is added.
Are there hidden fees foreigners miss in Oman right now?
Commonly overlooked fees for foreign buyers in Oman can add up to 1,000 to 3,000 OMR (2,600 to 7,800 USD or 2,400 to 7,200 EUR) depending on your property type and financing situation.
The top three hidden fees foreigners often miss are ITC community and service charges (which can run 500 to 2,000 OMR annually depending on the development), developer NOC or transfer admin fees on resales within master-planned communities (often 200 to 500 OMR), and mortgage-related extras like life and property insurance setup costs if financing.
Ongoing annual costs that foreign owners often underestimate include ITC service charges for common area maintenance, utility connection fees, and in some developments, contributions to community facilities, which together can total 1,000 to 3,000 OMR per year (2,600 to 7,800 USD or 2,400 to 7,200 EUR) depending on property size and location.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate 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.
Can I get a mortgage as a US citizen in Oman in 2026?
Do banks lend to US citizens in Oman in 2026?
As of early 2026, several Omani banks do lend to US citizens, but primarily to those who are residents with local income and can provide Oman-based documentation like a residency card and salary transfer records.
US citizens generally receive similar treatment to other foreign nationals when applying for mortgages in Oman, with the key distinction being resident versus non-resident status rather than specific passport advantages.
The main reason some banks in Oman are hesitant to lend to American borrowers specifically is the extra compliance burden from FATCA reporting requirements, which creates additional paperwork for banks when onboarding US clients.
While exact approval rates are not published, US citizens who are established Oman residents with stable employment at recognized companies have reasonable success obtaining mortgages, whereas non-residents face significantly lower chances and typically need to pay cash.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Oman.
What down payment do American people need in Oman in 2026?
As of early 2026, US citizens who qualify for a mortgage in Oman should budget a minimum down payment of 25%, meaning on a 100,000 OMR property (260,000 USD or 240,000 EUR), you would need at least 25,000 OMR (65,000 USD or 60,000 EUR) upfront.
The typical down payment range for foreign buyers in Oman runs from 20% at the most favorable end to 30% or more for borrowers with weaker profiles, with most expats landing around the 25% mark for a 75% loan-to-value ratio.
A larger down payment does generally improve your mortgage terms in Oman, as banks view lower loan-to-value ratios as less risky, which can translate to slightly better interest rates and smoother approval processes.
You can also read our latest update about mortgage and interest rates in Oman.
What interest rates do US citizens get in Oman in 2026?
As of early 2026, US citizens who qualify for mortgages in Oman can expect interest rates in the range of 4.5% to 6.5% per year, depending on the bank, loan product, and borrower profile.
Interest rates for foreign buyers in Oman are generally similar to those offered to local residents, with the main differences coming from individual creditworthiness and employment stability rather than nationality.
Both fixed-rate and variable-rate mortgages are available in Oman, with many foreign buyers opting for variable rates tied to bank base rates, and typical loan terms for expats ranging from 10 to 20 years (often shorter than the 25-year terms available to Omani nationals).
The single factor with the biggest impact on your interest rate as a US citizen in Oman is your employment profile, specifically whether you work for a recognized employer with salary transfer to the lending bank, which can unlock preferential rates.
Can I use US income to qualify in Oman right now?
Using US-sourced income to qualify for a mortgage in Oman is technically possible but quite difficult in practice, as most Omani banks strongly prefer borrowers with local residency documentation and Oman-based salary transfers.
If you do attempt to use US income, banks in Oman typically require extensive documentation including US tax returns, W-2 forms, employment verification letters, and bank statements showing consistent income deposits over at least six months to a year.
If standard US documentation is insufficient, some banks may accept alternative verification like certified accountant statements, proof of rental income from US properties, or substantial cash reserves in lieu of traditional employment income, though approval remains case-by-case and more challenging.
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How do US taxes interact with owning property in Oman?
Do I have to declare the property to the IRS from Oman?
Simply owning a home in Oman in your personal name does not typically trigger a standalone IRS reporting requirement, but any Omani bank accounts you open for the purchase can create FBAR and potentially Form 8938 filing obligations.
The specific IRS forms that may apply include FBAR (FinCEN Form 114) for foreign bank accounts exceeding 10,000 USD at any point during the year, Form 8938 for specified foreign financial assets above certain thresholds, and Schedule E if you earn rental income from the property.
Simply owning property does not trigger special reporting to the IRS, but earning rental income or selling the property at a gain does create US tax obligations that must be reported on your annual return.
Will I pay tax twice in the US and Oman in 2026?
As of early 2026, the risk of double taxation for US citizens owning property in Oman is generally low for typical home ownership because Oman does not impose personal income tax on individuals, though rental income or capital gains could create overlapping obligations.
There is currently no comprehensive income tax treaty between the United States and Oman, meaning US citizens cannot rely on treaty provisions to automatically eliminate double taxation and must instead use other mechanisms like the Foreign Tax Credit.
The Foreign Tax Credit allows US citizens to offset foreign taxes paid to Oman against their US tax liability on the same income, which helps prevent double taxation on rental income or gains if any Omani taxes apply.
Transaction fees paid in Oman (like the 3% transfer fee) are generally not deductible as property taxes on US returns since they are one-time fees rather than annual property taxes, so their treatment depends on whether the property is personal use or rental and how the costs are characterized on your return.
Do I need FATCA reporting when buying in Oman?
FATCA reporting may be triggered not by the property itself but by the financial accounts you open in Oman to facilitate the purchase, such as bank accounts for deposits, mortgage payments, or utility bills.
FATCA Form 8938 reporting thresholds for US citizens living in the US are 50,000 USD for single filers and 100,000 USD for married filing jointly at year-end, with higher thresholds for those living abroad, and these apply to aggregate foreign financial assets including bank accounts but not real estate directly.
FATCA (Form 8938) and FBAR (FinCEN Form 114) have different thresholds and filing locations: FBAR has a 10,000 USD aggregate balance trigger and is filed with FinCEN, while Form 8938 has higher thresholds and is filed with your tax return, but both may apply if you hold Omani bank accounts.
Consulting a US CPA before buying property in Oman is strongly recommended, especially to discuss questions about FBAR and FATCA filing requirements for any Omani accounts, how to report rental income and claim the Foreign Tax Credit, and whether holding property through an entity makes sense for your situation.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Oman. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Oman, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Oman Ministry of Housing and Urban Planning (ITC Royal Decree) | It's the official Omani government legal text for foreign ownership in ITCs. | We used it to confirm where foreigners can legally own property. We also used it to explain what "ownership" includes and key conditions around ITC purchases. |
| Oman Government Services Portal | It's the official whole-of-government service page citing Royal Oman Police. | We used it to show how property ownership connects to residency permits. We also clarified that immigration is handled separately from purchase. |
| Oman Tax Authority VAT Real Estate Guide | It's the tax regulator's published guidance for VAT on property. | We used it to explain which transactions are VAT-exempt versus taxable. We also highlighted the 5% standard VAT rate and first supply logic. |
| US IRS Tax Treaties Index | It's the official IRS index of all US income tax treaties. | We used it to verify whether a US-Oman tax treaty exists. We triangulated it against Oman's treaty list to ensure accuracy. |
| US FinCEN FBAR Filing Page | It's the official US government authority on foreign account reporting. | We used it to define what FBAR covers and its 10,000 USD threshold. We connected this to how property purchases create reportable bank accounts. |
| IRS Form 8938 FATCA Guidance | It's the IRS's official guidance on FATCA reporting requirements. | We used it to explain what counts as specified foreign financial assets. We framed when property-related structures might trigger reporting. |
| Bank Muscat Home Loans | It's Oman's largest bank with direct lender product information. | We used it to anchor headline home loan rates starting around 5%. We triangulated with other banks to estimate realistic rate ranges. |
| QNB Oman Mortgage Loans | It's a lender's official requirements list including expat documentation. | We used it to show expat residency card requirements and tenor limits. We supported our conclusion that non-resident mortgages are harder to obtain. |
| Oman Arab Bank Housing Loans | It's a bank's own published product terms for housing finance. | We used it to anchor typical LTV ceilings around 80% for qualified borrowers. We confirmed that products are marketed to expats and Omanis alike. |
| Oman Observer | It's a major national newspaper reporting specific policy changes. | We used it to anchor the 3% transfer fee figure after the reduction from 5%. We built our closing cost estimates on this official rate. |
| Oman National Centre for Statistics and Information | It's Oman's official national statistics agency. | We used it as the baseline for demographic data and expat population context. We reference it for any Oman housing statistics questions. |
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