Within the framework of the Sultanate of Oman’s endeavor to revitalize its real estate market, the opportunity to buy a property in the Sultanate of Oman was made available to foreigners after it was mortgaged to the local population only. That is why we have devoted this article to learn about the details of buying a property inside the Sultanate for foreigners in terms of conditions, objectives and official procedures.
Benefits of buying a property in the Sultanate of Oman for foreigners
The benefits of real estate investment for foreigners and non-Omani individuals include many benefits for the investor and the Omani government at the same time, because the Omani real estate market is a fertile ground that is expected to have tremendous success in the near future, and in return, the entry of foreign investment into the country enhances real estate development in it and contributes In raising its level and directing its eyes towards the world.
Granting foreign investors 10-year residency
The “Investor Residency” program was announced by the Ministry of Commerce and Industry in the Sultanate of Oman in 2021, with the aim of facilitating the process of granting long-term residencies to foreign investors. The value of this residency is 5_10 years, subject to extension if the listed conditions and rules are adhered to, and this can be applied for. Residency electronically through the Investment Services Center in the Ministry, after completing the necessary procedures.
The desired goals of foreign ownership of real estate in the Sultanate of Oman
The presence of foreign investments in the country contributes directly or indirectly to the development of the economy on the local scale. In light of this, the Omani Ministry of Housing and Urban Planning seeks to achieve several objectives, including:
Keeping pace with the aspirations of the international real estate market.
Allocating a budget for the real estate sector and controlling the movement of inputs and outputs.
Preserving the rules of Omani society and not violating the original population composition.
Create a competitive atmosphere in a work environment that encourages seeding, whose fruits seem very close.
Securing an additional economic return and not relying on the main sectors in the Sultanate.
What are the conditions for buying a property in the Sultanate of Oman for foreigners?
The Ministry of Housing in the Sultanate has set a set of conditions that must be met for the purpose of real estate ownership by foreigners, and these conditions are numerous to include the specifications of the foreign buyer and the specifications of the property itself, as well as controls related to the location of the property and the description of its location, as in the following paragraphs:
Conditions for foreign ownership in the Sultanate of Oman
It includes the set of things and characteristics that must be available to the foreign person / investor wishing to purchase the property, which are:
The buyer must be at least 23 years old.
Possessing a residence permit whose validity period exceeds two years at a minimum.
That the property that he wishes to buy is intended for housing for him and his family members of the first degree exclusively.
Conditions for foreign ownership of real estate in the Sultanate of Oman
The conditions of the desired property, the procedures for buying and selling and the like are included:
Completion of the actual implementation of the construction and shown in the maps approved by the competent municipality.
The period since the completion of the construction implementation shall not exceed 4 years according to the date of issuance of the official building completion certificate.
The number of building floors should be 4 or more.
The number of rooms in one residential unit shall not be less than two.
The property value should not be less than 45,000 riyals (approximately $117,000) in the capital, Muscat, and 35,000 riyals (approximately $91,000) in other states.
Paying 8% of the value of the property in cash as a down payment and installments to complete the amount by agreement between the two parties.
The percentage of ownership of housing units in one building should not exceed 40% for foreigners.
The percentage of housing units sold to foreigners of one nationality should not exceed 20%.
It is forbidden for the foreign buyer to dispose of the real estate from the date of writing the purchase contract up to 4 years, unless the validity of his residency in the country expires.
A foreign buyer is prohibited from mortgaging the property unless he is forced to find a source of financing in order to complete the payment of the value of the property.
Conditions for foreign ownership in the urban Sultanate of Oman
The laws in the Sultanate stipulate several conditions regarding the location of real estate available for foreign ownership, as it is prohibited to buy real estate in several areas according to the following:
Historical archaeological areas and those belonging to the Ministry of Culture and Antiquities.
Parts belonging to a security agency.
The areas surrounding the Sultan’s palaces are at a distance of one kilometer in each direction.
Areas surrounding military installations, at a distance of 500 meters in each direction.
Some states, mountains and plains, including: Jabal Al-Akhdar and Jabal Al-Shams.
Agricultural lands, except for the state of Salalah.