In our article, we will learn about the conditions for real estate ownership in the Sultanate of Oman, in which many seek to own property due to the many advantages offered by the state to foreigners to stimulate the real estate market and attract more foreign investments to it. Foreigners owning real estate in the Sultanate of Oman, we wish you a good follow-up through the Oman Lighthouse.
Objectives of real estate ownership in the Sultanate of Oman
Within the framework of revitalizing the economy of the Sultanate of Oman and taking advantage of the natural advantages that the country enjoys, in addition to several services and incentives that are offered to expatriates or non-Omani foreign investors, the Ministry of Housing and Urban Planning has worked to issue a law that includes the ownership system for different types of residential, commercial or administrative buildings according to Usufruct right for different nationalities around the world. This decision aims to
Keeping pace with what is happening in the global real estate markets in terms of recent trends
Directing most of the capital movement towards the real estate sector in Oman
Work to control the movements of funds within the local market
Creating new economic revenues, that is, achieving economic diversification after relying on oil revenues only.
Enhancing the expansion of real estate development projects in the country.
Create competitive work environments that encouraged and attracted international investors to work their projects on its territory.
The decision also fits the privacy of the Omani society and contributed to laying its foundations
Preserve the demographics in the Sultanate and preserve its Omani character.
Terms of real estate ownership in the Sultanate of Oman
There are many conditions imposed by the Omani government on those who wish to buy and own real estate on its lands to guarantee the interests of its citizens on the one hand, as well as the interest of the investor or foreigner who wishes to reside in Oman on the other hand, thus obtaining the greatest benefit for the Omani real estate market and putting it in the foreground. The conditions are divided into personal For the buyer himself or real estate belonging to the building, its details and its area, and now let's get acquainted with these conditions.
Personal conditions for real estate ownership in Oman
The Omani government has set conditions that must be met by a non-Omani buyer who wants to buy and own real estate in Oman:
The age of the buyer is set at 23 years
Holds a residence permit for a period of not less than two years
The purpose of purchasing the property is housing only
In the event that he wishes to share housing with others, they are first-degree relatives only.
Special conditions for real estate under ownership for non-Omanis
Among the conditions for real estate ownership in the Sultanate of Oman are the conditions for the building itself that a non-Omani wants to buy. The Omani government has clarified many controls on the property being owned by a foreign buyer.
The building should be located within the areas specified and approved by the Ministry of Housing and Urban Planning.
It is also required that the construction works be completed according to the maps approved by the municipality
The height of the building shall not be less than four storeys
The number of rooms in the residential or commercial unit must not be less than two rooms
The age of the building should not exceed 4 years from the date of issuance of its construction completion certificate.
Controls of housing units allowed to be owned by non-Omanis
The conditions are not only for the details of the building and the residential unit in terms of height, number of floors, divisions, and the area in which it is located, but the conditions also included multiple percentages and numbers that follow it, and the non-Omani buyer must see it
The price of the commercial or residential unit must not be less than 45 thousand Omani riyals, which is equivalent to 117 US dollars, for real estate in Muscat. In other governorates, the price must not be less than 35 thousand Omani riyals, which is equivalent to 91 thousand US dollars.
It is not allowed to sell unless at least 8% of the price of the property to be sold is collected in cash, with the possibility of installing the rest in installments to be agreed upon by both parties.
The selling percentage of residential and commercial real estate to foreigners is not allowed to exceed 40% of the total number of units in the entire property.
Nationalities must be diversified within each building, as it is prohibited that the percentage of units sold to the same nationality in the building exceed 20% of the total number of units in it.
The foreign owner is not entitled to dispose of the property until 4 years have passed since the issuance of the usufruct right contract, and here we exclude only foreigners whose official residence in Oman has expired.
The property can be mortgaged for the sole purpose of obtaining mortgage financing to supplement the value of the property
The foreign person's ownership of the property is forfeited if the real estate unit is mortgaged for other purposes and is considered a violation of the law.
Conditions of ownership in urban areas for non-Omanis
The government in the Sultanate of Oman imposed conditions on the location of real estate that is allowed to be sold and bought to non-Omanis, especially lands, as it allowed the purchase and ownership of real estate in various regions of the Sultanate, with the exception of the following:
Archaeological and historical areas and everything related to them
All regions that belong to the Ministry of Heritage and Culture
Areas that belong to the security authorities
The areas that follow the military and security installations and their surroundings are about 500 meters away
The areas surrounding the royal palaces for a distance of 1000 meters
A number of states and a number of plains and mountains
Registration procedures for real estate ownership
There are several steps in order to register on the system of usufruct rights for foreigners in commercial residential buildings through the electronic window
Submitting a request from the owner of the real estate unit through the real estate brokerage offices
We must mention the location of the real estate unit and the type of its use to ensure that it is not located in areas where ownership is prohibited
We enter the Building Completion Certificate to verify the age of the building
We upload all the details of the housing unit to ensure that the number of units does not exceed 40%.
Get approval to sell
Ensure that the previously mentioned conditions apply to the buyer
Ensure that the percentage of one nationality among sons does not exceed 20%.
Checking the price of the property and paying the 3% fee from the seller and 5% from the buyer
Issuance of the right of plunder document