Foreign Freehold Property Ownership in Oman: The Three Legal Routes

Yes — foreign nationals can own freehold property in Oman. Since Royal Decree 38/2025 was published in the Official Gazette in April 2025, non-Omanis of any nationality — individuals and companies alike — can hold full freehold title inside Knowledge Oasis Muscat (KOM) and designated special economic and free zones, with no Omani partner and no minimum ownership share. Layered on top of the long-standing tourism-complex route and GCC nationals’ rights, this gives foreign buyers three distinct legal paths to genuine ownership in one of the Gulf’s lowest-priced markets.

Palmera is a RERA-licensed brokerage (license 40780) with 0% buyer commission, now covering Oman alongside Dubai. You can browse Oman property or study pricing and demand in the Oman market data hub before you choose a route. This guide explains who can own what, where, and on what terms — and where the wider case for investing in Oman fits in.

At a glance

Route	Legal basis	Who qualifies	Tenure
Zone freehold (KOM, SEZ & free zones)	Royal Decree 38/2025	Any nationality — individuals & companies	Permanent freehold
Integrated Tourism Complexes (ITC)	Royal Decree 12/2006	Any nationality	Permanent, fully transferable title
GCC nationals	GCC framework	GCC citizens	Freehold nationwide (excl. reserved areas)
Outside designated zones (non-GCC)	Usufruct	Non-GCC foreigners	Usufruct up to 99 yrs, renewable & transferable

Purchase economics: registration fee 3%, VAT 5% where chargeable, capital-gains tax 0%, annual property tax 0%. Prime Muscat entry pricing sits at 750–1,150 AED per square foot.

The three freehold routes

Oman does not run a single, blanket “foreigners can buy anywhere” rule the way some neighbours do. Instead it offers three well-defined routes, each with its own legal basis. Understanding which one applies to a given development is the first decision any foreign buyer makes.

1. Zone freehold under Royal Decree 38/2025

This is the newest and most significant route. Royal Decree 38/2025 grants full freehold ownership to non-Omanis of any nationality — both individuals and companies — inside Knowledge Oasis Muscat and designated SEZ and free zones. Crucially, it requires no Omani partner and imposes no minimum ownership share: a foreign buyer can own 100% of the asset outright.

Oman’s designated economic zones are substantial. They include the Duqm SEZ — the largest in the MENA region at 2,000 km² — alongside Sohar, Salalah, KOM, Al Mazunah and Khazaen. These zones layer investor-friendly commercial terms on top of property rights: 100% foreign ownership, tax holidays of 25–30 years, 0% customs duty, full profit repatriation and no minimum capital. For anyone pairing a home purchase with a business, that combination is a genuine differentiator.

Verified: RD 38/2025 sets no minimum ownership share and requires no Omani partner for zone freehold.

2. Integrated Tourism Complexes (ITC)

The ITC route predates the 2025 reform and remains fully valid. Established under Royal Decree 12/2006, ITCs are master-planned tourism developments — think branded resort communities, marina districts and golf-anchored estates — where any nationality can buy. Ownership here is registered title that functions as permanent and fully transferable: you can sell, lease, bequeath or gift the property much as you would a freehold home elsewhere in the Gulf.

For most international buyers who arrived before 2025, an ITC address was the way in, and the stock of finished, well-managed ITC communities gives this route a track record the newer zones are still building.

3. GCC nationals’ rights

Citizens of GCC states sit in a separate, broader category. GCC nationals hold freehold rights across Oman, excluding a set of designated reserved areas. In practice this means a Saudi, Emirati, Kuwaiti, Qatari or Bahraini buyer is not confined to the tourism complexes or economic zones the way a non-GCC foreigner is — the country is largely open to them on freehold terms.

What non-GCC buyers get outside the zones: usufruct

Outside the ITCs and designated economic zones, a non-GCC foreigner does not take freehold — but ownership is still very much possible through usufruct. Usufruct is a long lease that runs for up to 99 years, and it is both renewable and transferable. That transferability matters: you can sell your usufruct interest on to another buyer, so the asset stays liquid rather than being locked to you personally.

For a buyer weighing usufruct against freehold, the practical questions are horizon and exit. A 99-year, renewable, transferable right covers essentially any realistic hold period and can be passed on — but it is a leasehold interest, not perpetual title, so it typically sits at the value-conscious end of the market. Where perpetual title is the priority, the zone-freehold and ITC routes are the answer.

Costs and taxes when you buy

Oman’s ownership regime is only half the story; the tax profile is the other half, and it is unusually clean for the region. There is 0% capital-gains tax on any profit when you sell, and 0% annual property tax on holding the asset — so the two levies that most erode returns elsewhere simply do not apply.

The friction costs are modest and predictable. Expect a one-off registration fee of 3% on the transaction, and VAT at 5% where it is chargeable. Against a prime Muscat entry price of 750–1,150 AED per square foot — among the lowest anywhere in the Gulf — the all-in cost of acquiring title is low by regional standards. Rental economics reinforce the case: gross yields run 8–10% annually, with net yields of 7–9% after costs.

Verified: Oman levies 0% capital-gains tax and 0% annual property tax; buyers pay a one-off 3% registration fee.

Residency that comes with ownership

Ownership and residency are linked, which is a large part of why foreign buyers look at Oman at all. Under RD 38/2025, non-Omani buyers at KOM and their immediate family are granted residency. Beyond that specific provision, a 2-year renewable investor visa applies on completed payments with no minimum threshold, and a 10-year Golden Visa is available for investments of OMR 200,000 or more (about USD 520K).

That ladder — a low-friction 2-year visa for smaller purchases, scaling up to a decade of security for larger ones — means the same property that gives you title can also give you a base in the country. The full mechanics, thresholds and family provisions are covered in the Oman Golden Visa and residency guide.

Verified: the 2-year investor visa has no minimum threshold; the 10-year Golden Visa applies from OMR 200,000+ invested.

Choosing your route

For most non-GCC international buyers the decision comes down to two questions. First, do you want perpetual title? If yes, look at zone freehold under RD 38/2025 or an ITC — both are permanent and fully transferable. Second, is the property inside a designated zone or tourism complex? If it is, freehold is on the table; if it is not, non-GCC buyers hold the asset through 99-year, renewable, transferable usufruct instead. GCC nationals can largely skip this decision tree and buy freehold nationwide outside reserved areas.

Whichever route fits, the underlying numbers are the same low-entry, tax-light, high-yield combination that has put Oman on international buyers’ maps. To see current stock across the routes, browse Oman property; to size the opportunity against prices, sales volumes and demand, start at the Oman market data hub.

Frequently asked questions

Can foreigners own freehold property in Oman?

Yes. Under Royal Decree 38/2025 (April 2025), non-Omanis of any nationality — individuals and companies — can own full freehold inside Knowledge Oasis Muscat and designated SEZ/free zones, with no Omani partner and no minimum share. Foreigners can also own permanent, transferable title in Integrated Tourism Complexes under RD 12/2006.

Do I need an Omani partner or a minimum investment to own property?

No. Royal Decree 38/2025 explicitly requires no Omani partner and sets no minimum ownership share for freehold inside KOM and designated zones. There is no minimum threshold for the 2-year renewable investor visa either; the 10-year Golden Visa applies from OMR 200,000 (about USD 520K) invested.

What is the difference between freehold, ITC ownership and usufruct?

Freehold under RD 38/2025 and registered ITC title under RD 12/2006 are both permanent and fully transferable. Usufruct is a long lease of up to 99 years — renewable and transferable — that applies to non-GCC buyers outside the designated zones.

What taxes and fees apply when a foreigner buys in Oman?

Oman charges 0% capital-gains tax and 0% annual property tax. On purchase you pay a one-off registration fee of 3%, and VAT of 5% applies where chargeable. Prime Muscat entry pricing runs 750–1,150 AED per square foot, among the lowest in the Gulf.

Does buying property in Oman grant residency?

Yes. Under RD 38/2025, non-Omani buyers at KOM and their immediate family are granted residency. A 2-year renewable investor visa applies on completed payments with no minimum threshold, and a 10-year Golden Visa is available from OMR 200,000+ invested.

Can GCC nationals own property anywhere in Oman?

GCC nationals hold freehold rights across Oman, excluding designated reserved areas. Non-GCC foreigners get freehold inside the tourism complexes and designated zones, and usufruct elsewhere.