- Registered long-term right of use, typically for decades and renewable
- Available where freehold is not open to foreigners
- Transferable and mortgageable in many cases, with consent
- Residency benefits differ from freehold
What a usufruct is
A usufruct is a registered right to use, occupy, build on and benefit from a property for a long fixed term, while ownership of the land itself stays with the landowner, often the state. It is an old civil-law instrument that Oman uses in two modern ways: to give foreign-owned companies long-term sites for hotels, factories, logistics and development outside the freehold zones, and, since the regulations of 2018 to 2021, to let foreigners acquire apartments in approved multi-storey buildings in districts where freehold is not open to them.
It is a genuine property right, registered against the title and enforceable, and in many cases it can be mortgaged and transferred with the landowner’s consent. It is not ownership of the land, and that difference matters for resale, for what happens at the end of the term and for residency. This page sets out how it works and when it is the right instrument.
Usufruct and freehold compared
| Freehold | Usufruct | |
|---|---|---|
| What you hold | Ownership of the unit or plot, registered and inheritable | A registered right of use for a fixed term, renewable by agreement |
| Where | Designated zones: ITCs, Sultan Haitham City, approved projects | Approved buildings and sites outside the zones |
| Term | Perpetual | Long fixed terms, commonly decades; renewal provisions in the contract |
| Transfer | Free sale to eligible buyers, subject to community rules | Transferable with the landowner’s consent and registration |
| Finance | Omani bank mortgages where available | Mortgageable in many cases, lender by lender |
| Residency | Owner Visa; Sultan Haitham City rule; Investor tiers | Position differs; confirmed case by case |
| Best for | Homes, residency, resale | Business premises, development land, city apartments outside zones |
When usufruct is the right route
Business premises
Offices, warehouses, factories and hotels outside the freehold zones are held by foreign-owned companies under usufruct or, in the free zones, under zone leases.
Development land
Larger parcels for residential or mixed-use development in the governorates are granted under usufruct with permitted use and build obligations.
City apartments
A foreigner who wants to live in an established Muscat district rather than a community can acquire an apartment in an approved building under usufruct.
Not for
A home bought mainly to support residency or for straightforward resale; freehold in a designated community is the clearer route.
Key terms to review
- Term length, renewal provisions and what happens at expiry
- Permitted use and any build or investment obligations
- Transfer and assignment conditions and the landowner’s consent process
- Mortgage and charging rights
- Ground rent or fees payable to the landowner
- Inheritance of the right for the remainder of the term
- Termination events and compensation
We have every usufruct contract reviewed by an independent Omani lawyer before you commit; see legal and transaction support.
Registration and transfer
Usufruct rights are registered against the land title at the Ministry of Housing and Urban Planning, with the holder recorded and the term and conditions noted, and since the 2026 Real Estate Registry Law the record is digital. Transfer to a new holder requires the landowner’s consent where the contract says so and registration of the assignment. See title deed and registration.
Residency and usufruct
The property-linked residency routes are built around registered residential units and designated-zone ownership. A usufruct apartment may or may not support an Owner Visa application depending on how the unit is registered and the regulations in force; the Investor Residency tiers count qualifying property as defined by the programme. We confirm the position for the specific unit in writing before you commit, and where residency is the goal we usually steer towards freehold. See residency by property.
Free zone leases
Companies in the Duqm, Sohar, Salalah and Khazaen zones hold land and premises under long-term leases from the zone authority rather than usufruct from the Ministry, with the zone’s customs and tax advantages attached. The economics are similar; the counterparty and approvals differ. See commercial and investment property.
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ExploreFrequently asked questions
What is usufruct in Oman?
How long does a usufruct last?
Can a usufruct be sold?
Can a usufruct be inherited?
Can I get a mortgage on a usufruct property?
Does a usufruct apartment give me residency?
Is usufruct safe?
What happens at the end of the term?
Page reviewed 2 November 2026. Availability, prices, payment terms and residency rules are confirmed in writing before you commit and may change.