Muscat,
The Ministry of Housing and Urban Planning has announced amendments to some real estate service fees, with the aim of achieving added value for beneficiaries, enhancing the investment environment in the real estate sector and upgrading the efficiency of the services.
The amendments, which covered 85 government services, included streamlining and merging fees of 47 services, cancelling the fees of 11 services, cutting down the fees of 8 services and introducing 14 new services as part of the principle of consolidating transparency in all aspects related to service pricing and service application.
The amendments include the following:
– Reducing the registration fees for sales contracts to 1% instead of 2% for Omani individuals and companies. This will contribute to diminishing the costs of real estate ownership by 50%.
– Reducing the fees for selling real estate through Islamic banks to 0.5%. This will enhance real estate financing according to solutions that are in line with market needs.
– Reducing the mortgage registration fees to a maximum of 0.5%. This will provide more flexible financing opportunities for the real estate sector.
The decision constitutes a strategic move that reflects the Ministry’s keenness to enhance investments and support the business environment.
The decision related to amending service fees provides for recovering sums paid for change of type of business activity. This step considers the circumstances of current investors and provides them with necessary support, to help boost their confidence in the investment environment in the Sultanate of Oman.
In the same context, the decision stipulated changing the price of the land use permit, while at the same time exempting (from fees) the agricultural lands whose use has been shifted to non-investment purposes, provided that these lands are located in detailed government plans.
The decision also included changing the fees for use of agricultural lands that the Ministry of Agriculture, Fisheries and Water Resources had previously collected. This change is applied in accordance with the determinants in effect at the time of payment.
As part of efforts made to improve the quality of services, the decision cancelled fees for some e-government services. This will contribute to enhancing digital transition and reducing financial burdens on citizens.
The most prominent services covered by the cancellation included “agricultural land registration fees”. The step is aimed to support the agricultural sector and enhances the utilization of land.
In addition, the decision provides for the cancellation of “land allocation fees” through electronic auctions. This offers greater opportunities for investors and real estate developers.
The decision also exempts “eligible segments” from real estate ownership fees. These include: The limited income segment and beneficiaries whose income does not exceed RO 300; persons with disabilities; beneficiaries of the Family Income Scheme; beneficiaries of the housing assistance programme; and retirees whose monthly income does not exceed RO 300.
The decision also included determining the fees for registration and documentation of real estate transactions, as well as transfer fees and requests to prove ownership of businesses.
The decision also regulated the following:
– Registration fees for those licensed to practice the real estate brokerage profession.
– Real estate development services fees.
– Registration fees for those licensed to practice real estate pricing.
The decision also fixed fees for registering and documenting real estate transactions, transfer fees and ownership verification requests.
It also regulated the registration fees for other categories:
– Those licensed to practice the real estate brokerage profession.
– Real estate development services fees.
– Registration fees for those licensed to practice real estate valuation.
– Fixing fees for services provided to real estate owners’ associations.
– Fixing prices of contract forms, applications forms and maps issued by the Ministry.
The amendments will also contribute to raising the level of beneficiary satisfaction to 90%. The Guide includes improving the clarity of fees structure and ease of carrying out procedures.
