You can learn about the foreign ownership law in the Sultanate of Oman through this article, in which we talked about the most important details of this law, the conditions for ownership for non-Omanis, the benefits that a foreign investor obtains from real estate ownership in the Sultanate, and the advantages of residing the investor in the Sultanate of Oman.
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The most important details of the ownership law for foreigners in the Sultanate of Oman
In the Sultanate of Oman, there are many laws and regulations regulating foreign ownership of real estate in Turkey, as follows:
Foreign Capital Investment Law
Under the Foreign Capital Investment Law, non-Omanis are allowed to invest in certain sectors of the Omani economy, subject to certain conditions.
These sectors include agriculture, industry, mining, tourism, health, education and transportation. In order to invest in any of these sectors, non-Omanis must obtain an investment license from the Ministry of Commerce and Industry.
Commercial Companies Law
Non-Omanis are allowed to establish companies in the Sultanate of Oman according to certain conditions. The Commercial Companies Law stipulates that foreigners can establish several types of companies, including joint stock companies, limited liability companies, and companies with joint management.
Non-Omanis are allowed to own up to 70% of joint stock companies and limited liability companies, provided that at least 30% of the company’s capital is owned by Omani nationals or companies.
Non-Omanis are also allowed to own up to 49% of general partnerships and joint ventures, while Omani nationals or Omani companies retain the remaining ownership.
Real estate ownership law
Non-Omanis are generally not allowed to own real estate in Oman, except in designated areas known as Integrated Tourist Complexes (ITCs).
These complexes are areas that have been designated specifically for the development of tourism and may include hotels, residential properties, and other facilities.
Accordingly, non-Omanis are allowed to own real estate within these integrated complexes, according to certain conditions and restrictions set by the Foreign Ownership Law in the Sultanate of Oman.
Conditions for non-Omanis ownership in the Sultanate
There are several conditions that define the restrictions imposed on the ownership of non-Omanis in the Sultanate of Oman. These restrictions have been put in place to protect the interests of Omani citizens and ensure that foreign investment in the country's economy is in line with the country's national development plans. These conditions are summarized in the following paragraphs:
Terms of personal use of real estate
Regulations for foreigners owning real estate for personal use in Oman require certain criteria to be met, including:
Possession of a valid residence permit for a period of not less than two years
Not be less than 23 years old
The purchase of the property must be for housing purposes only or jointly with their first-degree relatives.
Conditions required in the property
According to the details of the foreign ownership law in the Sultanate of Oman, the conditions that must be met for foreign buyers to own real estate in Oman include the regulations related to the sale process and the payment of the financial consideration.
Ensure the completion of construction work in the building in accordance with the approved municipality maps
The age of the building should not exceed four years from the date of completion of construction
The building must have at least four floors and the unit is under sale
The real estate unit must contain at least two rooms.
The cost of the unit subject to ownership by usufruct shall not be less than 45 thousand Omani riyals for real estate in Muscat and 35 thousand riyals for the rest of the real estate in other governorates.
Property owners must collect at least 8% of the value of the unit to be sold to a foreigner in advance, with the remaining balance paid in installments over an agreed period.
Foreign owners are prohibited from disposing of the unit until the lapse of four years from the date of issuance of the usufruct contract, except in cases where their official residence in the Sultanate ends.
Also, the foreign owner may not mortgage the real estate unit for any purpose other than obtaining financing to complete the value of owning the unit, and the ownership of the unit is confiscated in the event of violating this system.
Areas where ownership is prohibited for foreigners
There are certain areas in Oman where foreign ownership is prohibited, including those of the Ministry of Heritage and Culture, various security agencies, and archaeological and historical areas.
There are also states, plains, mountains and entire islands that foreigners are not allowed to own, such as Jabal Shams and Jabal Akhdar.
Also, areas within 1,000 meters of official royal palaces and 500 meters of military and security installations are prohibited for foreign buyers.
Foreigners are prohibited from owning agricultural lands in all governorates except Salalah.
Foreigners who owned lands in these restricted areas prior to the implementation of the regulations are required to transfer ownership to Omani nationals immediately.
What are the benefits of owning a property in the Sultanate of Oman?
There are several advantages that make the idea of benefiting from the foreign ownership law in the Sultanate of Oman one of the preferred ideas for foreign investors:
Strong economic growth
Oman has experienced strong economic growth in recent years, driven by a number of factors including its strategic location, stable political environment, and growing tourism industry.
This has contributed to a steady increase in real estate values over time, making it an attractive investment opportunity.
High rental yields for real estate in Oman
Rental yields in Oman are relatively high compared to other countries in the region. This is due to a combination of factors, including the growing demand for rental properties, limited housing supply, and the increasing expatriate population.
Oman has no personal income tax or capital gains tax, which can provide significant tax advantages for property owners.
In addition, real estate taxes in Oman are generally low compared to other countries in the region, and this is one of the most important advantages of the ownership law for foreigners in the Sultanate of Oman.