Oman Residency by Investment: The ITC Programme Explained

When wealthy individuals and families consider the Gulf as a base for international wealth planning, the conversation typically centres on Dubai or Abu Dhabi. Oman — Muscat in particular — attracts far less of that attention, and for investors who value substance over profile, this is precisely the point. The Sultanate of Oman offers a genuinely stable, low-tax environment, a well-developed legal framework, excellent infrastructure, and a residency-by-investment programme that is less well-known than its Emirati equivalent but structurally similar in its essentials.

Oman: Context and Character

Oman is an absolute monarchy governed by Sultan Haitham bin Tariq Al Said, who acceded to the throne in January 2020. The country has been one of the most politically stable Gulf states across several decades — avoiding the dramatic boom-bust cycles of some neighbours and maintaining a reputation for measured, consistent governance. The Omani government's Vision 2040 programme sets out a diversification agenda away from oil dependence, emphasising tourism, logistics, manufacturing, and technology.

Muscat, the capital, is a well-planned city with modern infrastructure, a large and settled international expatriate community (particularly from the UK, India, Pakistan, and South Africa), international schools, well-regarded private hospitals, and a relatively relaxed social environment by Gulf standards. Alcohol is available in licensed hotels and restaurants, entertainment venues operate, and the general atmosphere is described by many residents as more genuinely liveable than Dubai — without the relentless intensity of that city's pace.

The Omani Rial is one of the world's highest-valued currencies and is pegged to the US dollar at a rate of approximately USD 2.60 per OMR. This peg provides monetary stability and simplifies financial planning for USD-denominated international investors.

The Integrated Tourism Complex (ITC) Residency Programme

Oman's mechanism for offering foreigners the right to own freehold property — and, with it, long-term residency — is the Integrated Tourism Complex (ITC) framework. ITC developments are government-designated mixed-use developments typically comprising residential units, hotel operations, commercial space, and leisure facilities. Examples include Muscat Hills, The Wave Muscat, Almouj Golf (The Wave extension), Saraya Bandar Jissah, and developments in coastal locations such as Salalah and Duqm.

Within these designated developments, foreign nationals are permitted to purchase freehold property. This is the key exception to Oman's general rule restricting land ownership to Omani nationals.

Residency linked to investment. A foreign national who purchases a qualifying ITC property with a value of OMR 250,000 or above (approximately USD 650,000 at current rates) is eligible to apply for a long-term resident card. The card is issued for a period of 25 years and is renewable. It covers the main investor plus immediate family members — spouse and dependent children.

The residency card provides the legal right to reside in Oman on a long-term basis without the standard annual renewal process associated with employment or sponsorship-based visas. It also facilitates opening bank accounts, obtaining a driving licence, and accessing services in Oman.

Some ITC developments offer qualifying properties at lower values — occasionally around OMR 130,000–150,000 — which may confer a shorter-term or renewable residency option rather than the full 25-year card. Applicants should verify current thresholds directly with the developer and the Omani Ministry of Commerce and Industry, as programmes are subject to revision.

Tax Environment

Oman imposes no personal income tax on individuals. Foreign-source income, capital gains, dividends, interest, and rental income from outside Oman are not subject to Omani taxation for individual residents. There is no capital gains tax on the disposal of assets (including property in ITC developments, subject to any specific conditions). There is no inheritance tax or estate duty.

VAT was introduced in Oman in April 2021 at a rate of 5% — significantly lower than the UK's 20% or the EU standard rates. The VAT applies to goods and services in the normal way.

For corporate entities, Oman does impose corporate income tax (generally at 15% on taxable profits), which is relevant for business owners operating through Omani entities. The tax environment for operating businesses is therefore not equivalent to the zero-tax environment in certain free zones in the UAE — it is more comparable to a low-tax jurisdiction with a conventional corporate tax framework.

The UK-Oman Double Taxation Agreement (signed 2010, in force 2011) provides clarity on taxing rights for individuals and companies with connections to both countries. For a UK national who has genuinely ceased to be UK tax-resident (under the HMRC Statutory Residence Test) and established Oman as their place of tax residency, the DTA removes the risk of double taxation on most income types.

Oman vs UAE: A Considered Comparison

The comparison that most clients naturally make is between Oman residency and UAE Golden Visa residency. Both are Gulf jurisdictions, both are zero-income-tax for individuals, and both offer residency tied to property investment. The differences are meaningful:

Property costs. Oman property in ITC developments is substantially cheaper than comparable property in Dubai or Abu Dhabi. A qualifying USD 650,000 investment in Oman buys a significantly larger or higher-specification property than the same sum in Dubai's prime or mid-market. For investors primarily motivated by the residency rather than treating the property as a capital appreciation play, Oman delivers better value per square metre.

Lifestyle character. Dubai is an intensely international, fast-moving city with extraordinary amenities but a certain quality of relentlessness. Muscat is quieter, more genuinely liveable for families, and has a distinct Arabic character that Dubai's rapid internationalisation has somewhat diluted. Long-term residents consistently describe Oman as a place where they feel settled rather than transient.

Profile and privacy. Oman attracts less international media and regulatory attention than Dubai. For clients who value genuine privacy — in their personal lives, business affairs, and residential choices — Oman's lower profile is an advantage.

Connectivity. Dubai's connectivity is superior — more airlines, more routes, higher frequency. Muscat International Airport serves a good range of international destinations (London direct, major European hubs, South Asian cities, East African routes, Middle Eastern connections) but it is not in the same league as Dubai for total frequency and reach.

Business infrastructure. Dubai (and the Abu Dhabi Global Market in Abu Dhabi) offers a more developed financial services ecosystem, including regulated free zone structures used for international holding companies and investment vehicles. Oman's business infrastructure is developing under Vision 2040 but is not yet at the same level for sophisticated international structures.

The UK Connection

Oman has historically warm relationships with the United Kingdom, dating to the Omani-British relationship that predates the modern state. There is a long-standing British expatriate community in Muscat, a number of British-founded and British-run businesses, and a shared history that creates a cultural familiarity that some British clients find reassuring.

British nationals do not require a visa to visit Oman for tourism (e-visa or visa on arrival available). A British national who acquires ITC property and establishes genuine residence in Oman would hold a resident card for long-term stay — not equivalent to citizenship, but a stable long-term immigration status.

Oman is a Commonwealth observer member, though not a full Commonwealth member. The UK and Oman have a DTA as noted. There is no pathway to Omani citizenship through the ITC programme — citizenship in Oman is restricted to Omani nationals by birth and a small number of exceptional naturalisations.

Property Market in ITC Developments

ITC developments in Oman range from the mature (The Wave Muscat, which has been developed over more than a decade and has an established community of residents and owners) to newer coastal and inland projects still under development. Key considerations for property purchase within ITCs:

Developer track record. Some ITC projects have experienced delays or financial difficulties. Due diligence on the developer's financial strength, planning permissions, and construction progress is essential — particularly for off-plan purchases.

Rental yields. ITC properties in established hotel-linked developments can generate rental income through managed rental programmes. Yields vary by property type, location, and management arrangement. Independent rental management may also be possible in some developments.

Capital values. Oman's property market in ITC zones has shown moderate appreciation rather than the dramatic price movements seen in Dubai over 2021–24. Investors should model realistic appreciation assumptions rather than extrapolating from the UAE market.

Exit market. The secondary resale market for ITC properties is more limited than in Dubai. Reselling to another qualifying foreign buyer is possible, but transaction times and the pool of potential buyers are smaller. Investors should regard ITC property as a medium-to-long-term hold.

Compliance Caveats

Residency programmes, property regulations, and tax rules in Oman are subject to change by government decree. The position described reflects the situation as understood in 2026 and does not constitute legal or investment advice. Foreign nationals considering Oman residency should obtain current, jurisdiction-specific legal advice before committing capital. UK nationals must separately address their UK tax residency position with UK tax advisers — Oman residency does not automatically change UK tax status.

How Global Investments can help

Global Investments covers the UAE as one of the international property markets we work in and maintains connections across the Gulf region including Oman. We help clients understand how Oman residency fits into a broader international residency and wealth planning strategy — and connect them with specialist legal and property advisers with on-the-ground Oman expertise. Contact us to discuss your situation in confidence.