Property costs
& taxes in Oman
what buyers really pay
A transparent breakdown of every cost, tax and fee for buying property in Oman. Built for international investors who need clarity before committing.
Understanding the full picture
What does it really cost to buy property in Oman
Oman offers one of the most tax-efficient property markets in the GCC. With no annual property tax, no capital gains tax for individuals, and a straightforward 3% transfer fee, the Sultanate provides clarity that many international markets lack. Foreigners can own freehold property in designated Integrated Tourism Complexes (ITCs) with residency benefits. This guide breaks down every cost you'll encounter.
Key facts for buyers
Oman's property cost structure at a glance
Before diving into details, here's what makes Oman's property market cost-competitive compared to other global investment destinations.
Cost advantages
No annual property tax on residential or commercial real estate
No capital gains tax for individual property sales
1% transfer fee for Omanis (reduced from 2% in Jan 2025), 3% for foreigners
Residential property sales are VAT-exempt
Mortgage registration fees capped at 0.5% (2025 update)
No inheritance tax on property transfers
No personal income tax until January 2028
Key considerations
3% transfer fee for foreigners (1% for Omani nationals)
3% municipal tax on rental income for landlords
5% VAT applies to commercial property leasing
Foreign buyers must purchase within designated ITCs for freehold
Usufruct ownership (outside ITCs) has 5% registration fee
Some governorates restricted for foreign ownership
Important legal notice
This guide provides general information based on Omani regulations as of 2025. Tax laws and property regulations can change. We strongly recommend consulting with qualified legal and tax professionals before making any property purchase decisions. This content does not constitute legal or financial advice.
In this guide
What we cover
One-time transaction costs
Costs when buying property in Oman
These are the fees and costs you'll pay once, at the time of purchase. Understanding these upfront helps you budget accurately and avoid surprises.
Property Transfer Fee (Stamp Duty)
The primary government fee on property transactions. Rate differs by buyer nationality: 3% for foreigners, 1% for Omani nationals (reduced from 2% in January 2025), 0.5% for Islamic bank transactions.
Foreigners: 3% of property value
Omani citizens/companies: 1% (reduced Jan 2025)
Islamic bank transactions: 0.5%
Paid to Ministry of Housing before ownership transfer
Exemptions available for low-income, disabled, and certain retirees
Property Registration Fee
Fixed fee charged by the Ministry of Housing for registering the property deed in the buyer's name.
Fixed fee structure rather than percentage-based
Covers title deed transfer and registration
Processing typically takes 1-5 business days
Additional charges may apply for expedited service
Legal & Conveyancing Fees
Professional fees for legal review, contract preparation, title verification and conveyancing services.
Highly recommended for all international buyers
Covers contract review and negotiation
Includes title verification and due diligence
Some developers include legal support in the purchase
Agent Commission
Real estate agent commission, typically paid by the seller but sometimes shared or negotiated.
Standard rate is 2-3% of sale price
Often paid by the seller in Oman
For off-plan, usually included in developer pricing
Always clarify commission arrangements upfront
Valuation Fee
Independent property valuation if required for mortgage applications or certain transactions.
Required for bank financing
Must be from a licensed valuer
Valid for 3-6 months typically
Cost varies by property size and complexity
Bank & Mortgage Fees
Fees associated with mortgage arrangement. Registration fees capped at 0.5% under 2025 regulations.
Mortgage registration: Capped at 0.5% (2025 update)
Arrangement fee: Typically 0.5-1% of loan amount
Life and property insurance often required
Interest rates: 4-6% for non-residents
Total one-time costs summary
When budgeting for your property purchase, plan for total transaction costs between 5-7% of the property value, depending on whether you're using a mortgage and the level of legal support required.
Minimum estimate
~5%
Cash buyer, no agent
Typical range
5-7%
Standard transaction
With mortgage
6-8%
Including bank fees
Tax obligations
Property taxes in Oman explained
Oman offers one of the most tax-friendly property environments globally. Here's what you need to know about each tax type and how it applies to property.
Key tax advantage: No annual property tax
Unlike many countries, Oman does not levy any annual property tax (equivalent to council tax, rates, or property tax in other jurisdictions). You own your property without ongoing government taxation on the asset itself.
Annual Property Tax
Oman does not impose annual property taxes on residential or commercial real estate.
No equivalent to US property tax or UK council tax
No recurring government levy on property ownership
Applies to all property types and nationalities
One of the key attractions for international investors
Capital Gains Tax
Individual property sellers are not subject to capital gains tax. Corporate entities may have different treatment.
No capital gains tax for individual sellers
Corporate entities subject to standard corporate tax
Real estate investment trusts (REITs) have specific rules
Consult tax advisor for corporate structures
Value Added Tax (VAT)
VAT treatment depends on property type. Residential transactions are generally exempt, commercial may attract 5% VAT.
Residential property sales: Generally VAT-exempt
Commercial property leasing: 5% VAT may apply
Legal services: May attract 5% VAT
Transfer fee is separate from VAT
Inheritance & Gift Tax
Oman does not levy inheritance tax or gift tax on property transfers within families.
Property can be transferred to heirs without tax
No gift tax on property transfers
Islamic inheritance rules (Faraid) apply by default
Wills can be registered for non-Muslim owners
Municipal Tax (Rental Income)
Landlords pay a 3% municipal tax on gross rental income. This applies to property owners who rent out their units.
Calculated on gross rental income
No deductions for expenses, maintenance, or vacancy
Paid directly to municipal authorities
Rate has been stable since 2020
Personal Income Tax
Oman will introduce a 5% personal income tax from January 2028 for high earners. Rental income will be included in taxable income.
Effective date: January 1, 2028
Applies to income exceeding OMR 42,000 annually
Expected to affect only top 1% of earners
Rental income will be included as taxable income
Tax regulations can change
This information reflects current Oman tax law as of 2025. Tax regulations can be updated, and individual circumstances vary. We strongly recommend consulting with a qualified tax advisor familiar with Omani regulations before making investment decisions.
International buyer requirements
Foreign ownership through ITCs
Non-Omani nationals can purchase freehold property in the Sultanate through designated Integrated Tourism Complexes (ITCs). Here's what international investors need to know.
Who can buy property in Oman
Oman welcomes foreign property investment within designated zones, governed by Royal Decree 12/2006 and the Ministry of Housing and Urban Planning.
Omani nationals: Full ownership rights nationwide
GCC nationals: Can own property similar to Omani citizens
Non-GCC foreigners: Can purchase freehold within ITCs
Expats with residency: Can acquire usufruct rights in certain areas
Companies: Must be Oman-registered for property ownership
Full freehold ownership
Foreigners receive full ownership rights in ITCs
Within Integrated Tourism Complexes, foreign buyers receive full freehold ownership with the right to sell, lease, gift, and transfer property to heirs. ITC purchases also qualify for Oman residency visas.
Purchase Within an ITC
Foreigners must purchase within a government-approved Integrated Tourism Complex for freehold ownership.
Al Mouj Muscat, Muscat Hills, Jebel Sifah
Hawana Salalah, Yiti, AIDA
Sultan Haitham City, Saraya Bandar Jissah
No separate government approval required for ITC purchases
Legal Representation
Recommended for international buyers to navigate local requirements and ensure compliant transactions.
Contract review and negotiation
Title verification and due diligence
Power of attorney arrangements if needed
Liaison with developer and MoHUP
Document Authentication
Foreign documents may need authentication and translation for property registration.
Passport certification
Bank reference authentication
Translation to Arabic (certified)
Embassy/consulate legalization if required
Residency Visa Fees
ITC property ownership qualifies for residency visas with tiered benefits based on investment value.
OMR 200,000+: 10-year Golden Residency
OMR 100,000+: 5-year residency (renewable)
Family members can be sponsored
Geographic restrictions for foreign ownership
Certain areas in Oman have restrictions on foreign property ownership that buyers must be aware of:
Musandam Governorate: Restricted for foreign ownership
Buraimi, Dhahirah, Al Wusta: Restricted governorates
Certain wilayats: Liwa, Shinas, Masirah, Jabal Akhdar, Jabal Shams
Salalah (Dhofar): Exception - foreign ownership permitted in ITCs
Need guidance on foreign ownership
Our team specializes in helping international buyers navigate the Oman property market. We can guide you through ITC options and connect you with trusted legal partners.
Annual ownership costs
Ongoing costs of property ownership
While Oman has no annual property tax, there are still regular costs to budget for as a property owner. These vary significantly by property type, size and location.
~OMR 4/sqm
Per year
Service Charges
Fees charged by ITC management for common area maintenance, security, and shared facilities.
ITCs have mandatory service and maintenance fees
Covers cleaning, security, landscaping, pool maintenance
Typical range: OMR 500-1,500 per year
Usually paid quarterly or annually in advance
OMR 50-300
Per month
Utilities
Electricity, water and (where applicable) district cooling costs.
Electricity costs vary by consumption
Water charges are reasonable
District cooling available in some ITCs
Summer months higher for A/C usage
0.1-0.3%
Of value/year
Property Insurance
Recommended building and contents insurance to protect your investment.
Mandatory for mortgaged properties
Covers fire, flooding, structural damage
Contents insurance optional but recommended
Multiple providers available
1-2%
Of value/year
Maintenance Reserve
Budget allocation for repairs, replacements, and general upkeep.
A/C servicing (essential in Oman climate)
Painting and minor repairs
Appliance replacement
Recommended to budget conservatively
5-10%
Of rent (if let)
Property Management
For investment properties: fees for tenant management, rent collection, and property oversight.
Finding and vetting tenants
Rent collection and accounting
Maintenance coordination
Legal compliance and renewals
OMR 500-5,000
Per year
Community Fees
Additional fees for gated communities, club memberships, or premium facilities.
Gated community access and security
Golf club or beach club memberships
Premium gym or spa facilities
Not applicable to all properties
3%
Of rental income
Municipal Tax (Landlords)
If you rent out your property, a 3% municipal tax applies to gross rental income. No deductions allowed.
Calculated on gross rental income
No deductions for expenses or vacancy
Paid directly to municipal authorities
Required for all landlords in Oman
Annual budget guidelines by property type
Use these estimates as starting points when calculating your ownership costs. Actual costs vary by specific property, location and usage.
1-2 bed apartment
OMR 2,000-5,000/year
Including utilities and service charges
3-4 bed villa
OMR 5,000-12,000/year
Including utilities and maintenance
Luxury property
OMR 15,000+/year
Premium services and facilities
For investment property owners
If you're purchasing property as an investment, factor these ongoing costs into your yield calculations. A property with high service charges or management fees will reduce your net rental return.
Calculate net yield after all ongoing costs
Budget 5-10% vacancy allowance per year
Property management essential for overseas owners
Factor in periodic refurbishment costs between tenancies
Interactive tool
Property cost calculator
Estimate your total costs for buying property in Oman. Adjust the values below to see a personalized breakdown of transaction and ongoing costs.
Your property details
One-Time Transaction Costs
Property Transfer Fee
3% of property value
OMR 60,000
Registration Fee
OMR 10-100
OMR 50
Legal Fees (estimated)
1.5%
OMR 30,000
ITC Purchase Costs
Legal and documentation
OMR 250
Agent Commission
2.5% (if buyer pays)
OMR 50,000
Total One-Time Costs
4.5% of property value
OMR 90,300
Estimated Annual Costs
Maintenance & Repairs
~1% of property value
OMR 10,000
Property Insurance
~0.2% of property value
OMR 2,000
Utilities (estimated)
varies by usage
OMR 1,200
Total Annual Estimate
OMR 13,200
These calculations are estimates only and based on typical rates. Actual costs may vary based on specific property, location, and negotiated terms. Consult with professionals for accurate figures before purchase.
Frequently asked questions
Common questions about property costs in Oman
Answers to the questions we hear most often from international buyers about costs, taxes and fees.
Oman's property transfer fee varies by buyer nationality. Foreign buyers pay 3% of the property value, while Omani nationals pay just 1% (reduced from 2% in January 2025). Islamic bank transactions are charged 0.5%.
The fee is paid to the Ministry of Housing and Urban Planning at the time of ownership transfer. Certain exemptions apply for low-income earners, persons with disabilities, and qualifying retirees.
- Foreigners: 3% of property value
- Omani nationals: 1% (reduced Jan 2025)
- Islamic bank transactions: 0.5%
- Exemptions: Low-income, disabled, certain retirees
No, Oman does not levy any annual property tax on residential or commercial real estate. This is one of the significant advantages of property ownership in the Sultanate compared to many other countries.
Unlike the UK (council tax), USA (property tax), or many European countries, you will not pay any recurring government tax simply for owning property in Oman.
For individual property owners, there is no capital gains tax when selling property in Oman. This makes the Sultanate particularly attractive for property investors seeking tax-efficient returns.
Corporate entities may have different tax treatment under Omani corporate tax law. If you're purchasing through a company structure, consult a tax advisor for specific guidance.
Oman has a 5% VAT rate, but residential property transactions are generally exempt. The transfer fee is separate from VAT.
- Residential property sales: VAT-exempt
- Commercial property leasing: 5% VAT may apply
- Legal services: May attract 5% VAT
- Transfer fee (3%) is separate from VAT
Foreign buyers can purchase freehold property within designated Integrated Tourism Complexes (ITCs) under Royal Decree 12/2006. No separate government approval is needed for ITC purchases.
ITC ownership also qualifies buyers for Omani residency visas with tiered benefits based on investment value.
- ITC purchase: No approval fees, freehold ownership
- Legal representation: OMR 500-2,000 (recommended)
- Document authentication: OMR 100-500
- Residency visa fees: OMR 100-300
For most foreign buyers, total transaction costs range from 5-7% of the property value. This breaks down approximately as:
- Transfer fee: 3% (foreigners) or 1% (Omanis)
- Mortgage registration: 0.5% (capped, 2025 update)
- Registration: OMR 10-100 (fixed)
- Legal fees: 0.75-1%
- Agent commission: 0-3% (depends on arrangement)
Yes, landlords in Oman pay a 3% municipal tax on gross rental income. This is separate from any personal income tax (which will apply from 2028 for high earners).
- Rate: 3% of gross rental income
- No deductions for expenses, maintenance, or vacancy
- Paid directly to municipal authorities
- Personal income tax (5%) applies from January 2028 for income over OMR 42,000
Different costs are paid at different stages of the transaction:
- Reservation fee (often refundable): Paid to developer/agent at reservation
- Legal fees: Typically 50% upfront, 50% on completion
- Transfer fee: Paid to Ministry of Housing before ownership transfer
- Registration fee: Paid at time of registration
- Agent commission: Usually on completion
- Balance of purchase: To seller/developer on completion
Have a specific question about costs or taxes? Our team is available to provide personalized guidance based on your situation. Contact us for a confidential discussion about your property investment plans.
Related resources
Continue your research
Explore our comprehensive guides to make informed property decisions in Oman.
Buying guide
Complete Guide to Buying Property in Oman
Step-by-step process from search to ownership for international buyers.
Residency
Visa & Residency Guide for Property Buyers
How property investment connects to Oman residency options.
Vision 2040
Oman Vision 2040 Investment Opportunities
Understanding the mega-projects and tourism developments driving property demand.
Market insights
Latest Market Intelligence
Analysis, trends and forecasts for Oman property investors.
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