Freehold and usufruct are not the same property right in Oman. A foreign buyer should identify the exact registered right before comparing price, residency, mortgage, resale or inheritance.
In simple terms, freehold gives registered ownership under the legal framework that allows the foreign buyer to own the property. Usufruct gives a registered right to use and benefit from property for a defined period while the underlying ownership remains separate.
The practical difference
| Question | Freehold | Usufruct |
|---|---|---|
| Nature of right | Registered ownership | Registered right to use and benefit |
| Duration | Normally not time-limited in the same way | Defined term; the 357/2020 scheme can reach a maximum total of 99 years |
| Underlying land/title | Ownership is held under the applicable framework | Underlying ownership remains separate |
| Resale | Subject to the applicable project and registration rules | Transfer is subject to the registered term and scheme rules |
| Inheritance | Passes through the applicable succession process | The remaining registered usufruct term can pass to heirs under the scheme |
What is freehold ownership?
For a foreign buyer, “freehold” should mean that the buyer can be registered as owner of the eligible property under a legal framework that permits non-Omani ownership. The right should ultimately be evidenced through the official Real Estate Registry and title deed.
Foreign freehold is not a nationwide entitlement. It exists in approved frameworks such as Integrated Tourism Complexes and certain specifically designated investment projects. See where foreigners can buy property in Oman for the wider map.
What is usufruct?
Usufruct is a real property right that allows the holder to use and benefit from property owned by another party. It can be registered, transferred within the governing rules, inherited for the remaining term and, in the specific residential scheme created by Ministerial Decision 357/2020, mortgaged to finance the same property.
The key point is that a long usufruct is still not the same thing as permanent freehold ownership. The remaining term matters to value, financing, resale and long-term planning.
The specific non-Omani residential usufruct scheme
Ministerial Decision 357/2020 created a specific route for non-Omanis to acquire residential units under usufruct in designated multi-storey residential-commercial buildings.
- Buyer must be at least 23 years old.
- Buyer must have had residence in Oman for at least two years when applying under this scheme.
- Only one residential unit may be acquired, individually or jointly with first-degree relatives.
- The initial usufruct term may not exceed 50 years.
- The term may be renewed, but the total may not exceed 99 years.
- The project must meet the building and approval conditions set by the Ministry.
- Foreign allocation is limited to 40% of residential units in the qualifying building, with an additional nationality concentration limit.
- The right is acquired only through registration.
Registration is what makes the usufruct legally effective
Decision 357/2020 is explicit: the usufruct right is not acquired unless it is registered with the Real Estate Registry. A private agreement alone is not enough to create the registered real right.
This matches the wider principle in Oman’s 2026 Real Estate Registry Law: transactions creating or transferring real property rights must be registered, and an unregistered transaction has only personal effect between the parties rather than full real-property effect against third parties.
Can usufruct be resold?
Under the 357/2020 scheme, the usufructuary may dispose of the registered right after four years from registration, subject to the remaining term and the nature of the right. The Minister may allow earlier disposal in specified cases such as expiry of the holder’s residence or purchase of a replacement unit.
That means a buyer should check not only the original term, but also how many years remain at the expected exit date. A 99-year right bought near the beginning of its term is economically different from the same right with a much shorter period left.
Can usufruct be inherited?
Yes, the specific 357/2020 scheme states that the usufruct right passes on death to the legal heirs, burdened by the existing rights and limited to the remaining term.
Inheritance still requires the relevant succession and registration process. The fact that the right is inheritable does not remove the need for title and estate documentation.
Can a usufruct property be mortgaged?
Under the same scheme, the usufructuary may mortgage the residential unit for the purpose of financing that property. Actual bank approval remains separate and depends on the lender, applicant and project.
Five checks before buying a usufruct property
- Legal basis: confirm the exact scheme and Ministry approval.
- Remaining term: verify the registered start date, expiry date and renewal mechanism.
- Transfer: confirm when and to whom the right may be transferred.
- Registration: confirm what will appear in the Real Estate Registry and title documentation.
- Exit economics: understand how the declining remaining term could affect financing, resale demand and valuation.
Freehold vs usufruct: which is better?
There is no universal answer. Freehold can be easier to understand for long-term ownership and resale because it is not defined by an expiring contractual term. Usufruct can still be a substantial registered property right and may provide access to locations or price points that are not available through the same freehold route.
The correct comparison is not “freehold sounds better.” Compare the purchase price, remaining term, registration, financing, annual costs, permitted use, resale audience and the buyer’s expected holding period.
Frequently asked questions
Is a 99-year usufruct the same as freehold?
No. It is a long-term registered property right, but it remains time-limited and the underlying ownership is separate.
Can foreigners buy usufruct property outside ITCs?
Yes, where an approved scheme allows it. Decision 357/2020 created one specific route for qualifying residential units in designated multi-storey buildings. It is not a blanket right over all non-ITC property.
Does usufruct automatically give residence?
No. Property rights and immigration status are separate. Check the current property-owner residence framework independently.
Official and primary sources
- Ministerial Decision 357/2020 — non-Omani residential usufruct rules
- Royal Decree 56/2026 — Real Estate Registry Law
Last reviewed: 12 September 2026. Always verify the exact registered right, project approval and remaining term before paying.
