The Ministry of Housing and Urban Planning (MHUP) in Oman has announced key amendments to realThe Ministry of Housing and Urban Planning has introduced significant amendments to real estate service fees to enhance the investment climate, improve service efficiency, and provide added value to beneficiaries.
These changes affect 85 government services, with key modifications including:
- Streamlining and merging 47 service fees.
- Eliminating 11 fees.
- Reducing 8 service fees.
- Introducing 14 new services.
These revisions aim to reinforce transparency in service pricing and application, aligning with the government’s broader strategy to attract investment and support the real estate sector.
Key Amendments for Investors
- Lower Real Estate Sales Fees: Registration fees for sales contracts have been reduced from 2% to 1% only for Omani individuals and companies, cutting real estate ownership costs by 50%.
- Islamic Bank Transactions: Fees for selling real estate through Islamic banks have been capped at 0.5%, enabling more tailored real estate financing solutions.
- Mortgage Registration Fees: Now capped at 0.5%, offering greater flexibility for real estate investors.
- Reimbursement for Changes in Business Activity: Investors, including Omani companies, are eligible for reimbursements on fees paid for business activity type adjustments, providing financial relief to existing investors.
Additional Adjustments
The amendments also include:
- Land Use Permit Fees: Adjusted, with exemptions for agricultural lands converted for non-investment purposes within government planning zones.
- Revised Agricultural Land Fees: Previously collected by the Ministry of Agriculture, Fisheries, and Water Resources.
- Elimination of Certain E-Government Service Fees: Supporting digital transformation and reducing financial burdens.
Exemptions Specific to Omani Citizens
To make property ownership more accessible, the decision includes exemptions specifically for Omanis:
- Low-income earners: Omanis with a monthly income not exceeding RO 300 are exempt from real estate ownership fees.
- Persons with disabilities: Omani citizens with disabilities are exempt from these fees.
- Beneficiaries of the Family Income Scheme and Housing Assistance Programme: These Omanis are fully exempt from ownership fees.
- Retirees: Omani retirees with a monthly income below RO 300 are exempt.
Regulation and Transparency Enhancements
The changes introduce better regulation and clearer pricing for:
- Real estate brokerage licences.
- Real estate development services.
- Real estate valuation professionals.
- Services for real estate owners’ associations.
- Pricing for official contract forms, applications, and maps issued by the ministry.
These measures are expected to improve user satisfaction to 90%, thanks to streamlined processes and clearer fee structures.
Source:
This information was extracted from the following sources. For more details, please visit the links below:
-
-
-
-
