Oman Income Tax for Foreigners: 2026 Rules and the 2028 Change

Oman Income Tax for Foreigners: 2026 Rules and the 2028 Change

Oman income tax for foreigners is nil today: as of 6 November 2026, Oman taxes neither residents nor non-residents on personal income or on an individual’s capital gains. That ends on 1 January 2028, when Royal Decree 56/2025 starts a flat 5% tax on income above OMR 42,000 ($109,234) a year, with rent and property-sale gains in scope.

This guide separates what is in force from what is coming. It lists every tax a foreign property owner meets in Oman today, reads the 2028 law through the commentary of the Tax Authority and the advisory firms, tests the 183-day residence rule, and works through examples with the arithmetic shown: an owner-occupier, a landlord with one unit, a landlord with three, a non-resident landlord, a sale and a company owner. Purchase-cost figures use prices from our own listing pages.

Is Oman Income Tax for Foreigners Zero in 2026? What a Foreign Owner Pays Today

Deloitte’s Oman Highlights 2026, updated in January 2026, states the position in one sentence: neither residents nor non-residents are subject to income or capital gains taxes in Oman, although non-residents may suffer withholding tax depending on the type of payment. The same document records that there is no real property tax, no net wealth tax, no inheritance or estate tax, no capital duty and no transfer tax, with one qualification: stamp duty applies to the acquisition of real estate at 3% of the sales value. It adds that tourism and municipality taxes may be imposed. That short list is the whole federal picture for an individual who owns a home in Oman.

For a foreign owner the practical meaning is a small set of taxes and fees, none of which is an annual charge on the value of the property. The table below sets them out as they stand on 6 November 2026, with the source for each. Service charges are not in the table because they are a contractual cost set by the community or developer, not a tax; the figures from our listing pages appear later in this guide.

The tenancy registration fee deserves a note because it is the only recurring charge on a let property. The Oman Observer reported on 6 February 2021 that Muscat Municipality had warned landlords and real estate companies against avoiding the 3% fee, that it had been cut from 5% after a directive of Sultan Haitham bin Tarik to encourage the documentation of rent, and that under the Tenancy Law the landlord or the landlord’s agent must register the lease with the municipality and pay the charges. A Curtis law blog post of March 2016 describes the base as the total rent payable over the lease term and records a fine of three times the fee for a landlord who fails to register. We therefore compute it later as 3% of the total rent over the lease.

The existing guide on property tax in Oman covers the purchase side in more depth. This article concentrates on income tax and the taxes that follow a foreign owner after completion.

Is Oman a Tax Haven? How the System Compares

There is no single legal definition of a tax haven, and different lists and tests reach different results, so this article does not apply one. It reports the rates, which is what a property owner needs. On 6 November 2026 Oman has a 15% corporate income tax with no surtax and no alternative minimum tax, a 5% VAT that has applied since 16 April 2021, a 3% stamp duty on real estate acquisitions, a withholding tax of 10% on royalties, technical fees and management fees paid abroad, and a personal income tax that is legislated for 1 January 2028. Deloitte also records that Oman has legislated a 15% minimum tax for multinational groups with consolidated revenue of at least EUR 750 million, in line with the OECD Pillar Two model.

Several features cut the other way. Deloitte states that there are no exchange controls on inbound or outbound investment or on the repatriation of capital or profits, although administrative procedures must be followed. There is no inheritance tax and no net wealth tax. The Tax Authority’s own list of double tax agreements, read on 6 November 2026, contains 44 countries, and the Tax Authority’s news page shows that Oman and Jersey signed another agreement in Muscat, with the page stamped 4 November 2026. A system with these features is tax-light for an individual who owns a flat, and it is not tax-free for a business that earns profits in Oman.

The direction of travel matters more than the label. The personal income tax law was passed in 2025 for a start in 2028, the Tax Authority is building an electronic filing system, and Oman is rolling out e-invoicing for businesses in phases. Any plan that assumes a permanent absence of personal tax on rent or on property gains is now built on a rule with an end date, and Oman income tax for foreigners is a question of which year the income arises in.

Will Oman Introduce Income Tax? Royal Decree 56/2025 and the 2028 Start Date

Oman has already legislated its personal income tax; the open questions are about detail, not about whether it comes. Sultan Haitham bin Tarik issued Royal Decree 56/2025 on 22 June 2025, and the Personal Income Tax Law attached to it was published in Official Gazette issue 1602 on 30 June 2025, according to the decree.om text of the decree. The decree has four articles. Article I applies the attached law, Article II tells the Chairman of the Tax Authority to issue the executive regulation “within a year from the date of its publication in the Official Gazette”, Article III repeals Article 18 bis (1) of the Income Tax Law issued by Royal Decree 28/2009, and Article IV brings it into force on 1 January 2028.

The Tax Authority’s announcement, dated 22 June 2025, gives the shape of the law: 76 articles in 16 chapters, applying to natural persons whose total annual income exceeds OMR 42,000, with a rate of 5% of taxable income. The Authority said an impact study found that about 99% of the population would not be subject to the tax, and that deductions and exemptions cover education, healthcare, inheritance, zakat, donations and primary housing. It also listed the purposes: to diversify revenue under Oman Vision 2040, with non-oil revenue targets of 15% of GDP by 2030 and 18% by 2040, and to help fund social protection. The Authority’s Director of Personal Income Tax, Karima bint Mubarak Al Saadi, said that preparations were complete, that the electronic system links to other institutions to verify income, and that guidance manuals would be published gradually.

The status of the executive regulation is the one item still to watch. EY’s alert of 8 July 2025 put the deadline at 30 June 2026, and the decree.om blog post “Countdown to 2028”, dated 24 August 2026, still described the executive regulation as the document that will supply the details on allowable costs and compliance procedures. The Tax Authority’s news list for September to November 2026, which has six items, includes no personal income tax item. The regulation can add definitions, forms and limits, so every example in this article is an illustration of the law as the advisers describe it, and the Arabic text and the regulation control.

The effect on foreign owners is covered in our cost of living guide, which already treats the 2028 start as the date to plan around, and in the guide to retiring in Oman.

How Personal Income Tax in Oman Is Calculated: The OMR 42,000 Threshold

The sources agree on how the OMR 42,000 works, even though they word it differently. Gross income for a tax year is everything received in cash or in kind. A fixed OMR 42,000 ($109,234) is taken off it; Gulf News describes this as a fixed deduction, the Times of Oman opinion piece of 22 August 2026 says the first OMR 42,000 of gross income is excluded, and the decree.om commentary of 24 August 2026 calls it a flat exemption applied to gross income. What remains is net income. Exemptions, allowable costs and losses are then subtracted to reach taxable income, and the 5% rate in Article 8 is applied to that. Income at or below the threshold produces no tax and, according to decree.om’s reading of Article 33, no duty to file.

The decree.om commentary supplies a worked example: gross income of OMR 60,000 less OMR 42,000 leaves OMR 18,000, and 5% of that is OMR 900 with no further deductions. The effective rate on the OMR 60,000 is 1.5%. Our cost of living guide gives the same OMR 900 and shows that at OMR 100,000 the effective rate is 2.9%: OMR 58,000 at 5% is OMR 2,900.

Sixteen exemptions are listed in Article 25, according to both EY and the decree.om commentary. The ones that matter to a property owner are the sale of a primary residence, the sale of one secondary residence, inheritance and gifts between spouses and first-degree relatives, education and healthcare expenses for the taxpayer and certain relatives, zakat and donations including waqf up to 5% of gross income, and interest on a loan for one primary residence, available once. KPMG’s alert of 26 June 2025 adds the exemption for income earned outside Oman, which is one-time and temporary. Rent and real-estate gains are not exempt. Both are income sources.

Losses are ring-fenced. Under Articles 26 and 27 as summarised by decree.om, a loss can be set only against income from the same source and an unused loss carries forward for up to five years. A rental loss therefore cannot reduce a salary.

Oman Income Tax for Foreigners and Foreign Income: The 183-Day Test

Residence decides what the 5% applies to. Article 1, as quoted in the decree.om commentary, makes a tax resident anyone who has resided in Oman “for a period exceeding 183 days, continuous or intermittent, during a tax year”. Everyone else is a non-resident. EY, the Times of Oman opinion piece and the decree.om commentary all agree on the consequence: a tax resident is taxed on income earned inside and outside Oman, while a non-resident is taxed only on income earned in Oman. The old test, Article 18 bis (1) of Royal Decree 28/2009, was repealed by Article III of the decree, as Al Tamimi noted in its note of 26 June 2025.

The test counts days, so the arithmetic is simple and unforgiving. A person who spends 183 days in Oman in 2028 is a non-resident; a person who spends 184 is a resident. The days need not be consecutive, so two stays of 92 days are enough. Oman’s new Owner Visa, introduced by Royal Oman Police Decision 87/2026 and in force from 22 June 2026, is described in our residency guide as valid for six months to one year, renewable, with a maximum stay of three months per entry. Several entries in one tax year would be added together for the day count. The Golden Residency, decided by the Royal Oman Police for a single Integrated Tourism Complex property worth at least OMR 200,000 ($520,160), does not change the day count either: tax residence follows presence, not the type of visa.

Two relief mechanisms apply to foreign income. KPMG and Deloitte both list a one-time temporary exemption for income earned outside Oman, and the executive regulation is expected to set how it operates for a person who becomes resident. Foreign tax paid on the same income can be deducted from the Omani tax, up to the amount of the Omani tax, according to EY and the decree.om commentary, with procedures left to the regulation.

Double tax agreements are the second layer. The Tax Authority’s page lists 44 agreements. Countries on it that foreign property buyers often come from include Britain, India, Pakistan, Turkey, Russia, Canada, France, the Netherlands, Switzerland and Cyprus. Agreements with Egypt, Estonia, Tanzania, Cyprus and Luxembourg show an effective date of 1 January 2026, and the page records an Oman-India protocol effective 28 May 2025. The Tax Authority also published, with a page date of 21 September 2026, the signing of an agreement with Angola, and on 4 November 2026 the Jersey agreement. Whether a treaty reduces tax on Omani rent depends on its text and on the owner’s home country, and an owner’s home country may tax the same income under its own rules. A reader should check the list for their country and read the treaty’s article on income from immovable property.

Personal Income Tax in Oman on Rental Income From 2028

For Oman income tax for foreigners who let property, rent is a named source. The Oman Observer’s report of 30 June 2025 lists eleven sources of income under the new law, including leasing, which covers rent from property, equipment or other assets, with a 15% cost deduction. Alvarez & Marsal, in a note published on Legal 500 on 25 July 2025, describes the choice for rental and self-employment income as either a 15% cost presumption or deduction of actual costs. Which is better depends on the numbers, so the examples below compute both.

The 15% presumption is simple. Rent of OMR 4,800 ($12,484) gives a deemed cost of OMR 720 ($1,873), which is subtracted after the flat amount in the method used here. Actual costs could be higher or lower: a management fee, a service charge, repairs and, if the rules allow it, similar items. Our guide to renting out an Oman property from abroad gives management fees of 5% to 10% of annual rent for long lets, and the service charge on the Alef Qurum Residence two-bedroom is OMR 441 ($1,147) a year on our listing page, which is OMR 5 per square metre on 88.25 square metres.

Three things stay the same after 2028. First, long-term residential rent remains exempt from VAT. The Oman Observer, reporting on 26 April 2021 on advice from MMJS Consulting, said the exemption requires a registered rental contract of at least three months, and that hotels, hotel apartments, tourist compounds, holiday homes and Airbnb-style lodgings fall outside it; our guide to the Airbnb rules in Oman covers that short-let side. Second, the tenancy registration fee of 3% continues, because it is a municipal charge and not an income tax. Third, rent from commercial property carries 5% VAT; Deloitte lists the sale and rent of commercial property as standard-rated.

A statement that rental income is untaxed is correct for 2026 and not for 2028. A buyer taking delivery of an off-plan unit scheduled for 2028 or later, such as the Q2 2029 target on the Alef Qurum Residence page, will let it under the new rules for its whole rental life.

Real Estate Tax in Oman: Buying, Owning and Selling

There is no annual real estate tax, which keeps Oman income tax for foreigners separate from any charge on the property itself. Deloitte says so directly: there is no real property tax. What a foreign owner pays instead is a one-off 3% at acquisition, VAT on a new unit where it applies, and the recurring service charge, which is set by the developer or the community under the sale contract. The service charges on our listing pages show the scale of this recurring cost.

On a sale the position is different today and in 2028. In 2026 an individual pays no capital gains tax on selling a home, and VAT does not apply to a resale of residential property. From 1 January 2028 gains from disposing of real estate are an income source under Article 7, as summarised by decree.om and the Oman Observer. The exemptions are specific: the sale of a primary residence is exempt if the sale takes place at least two years after the owner notified the Tax Authority, and one secondary residence can be exempt once in a person’s lifetime. Inheritance, and transfers between spouses and first-degree relatives, are not treated as sales. Alvarez & Marsal notes that the two-year notice may be impractical for some taxpayers, which is a reason to note the notification date in the owner’s records.

An investment unit that is neither the primary nor the secondary residence does not qualify. Its gain would join the year’s gross income. The worked examples include one such sale. For exit costs beyond tax, see our guide to selling property in Oman, and for transfer rules on inherited property see inheritance for foreign property owners.

Stamp Duty in Oman: The 3% Registration Fee on Our Listings

Stamp duty in Oman, for a property buyer, means the 3% fee on the sales value when a title is registered. Deloitte labels it stamp duty and gives the rate as 3% of the sales value on the acquisition of real estate. The Times of Oman reported on 4 November 2020 that the Ministry of Housing and Urban Planning had cut real estate fees from 5% to 3% from Tuesday 3 November 2020, as part of the medium-term fiscal balance plan and a push to revive the market. No source we read states the payer in a single official text, so the table treats the cost as part of a buyer’s budget and lets the sale contract decide.

The table applies 3% to the prices on our listing pages. The VAT column shows 5% of the same price where the unit is a first sale by a developer; the Oman Observer reported on 26 April 2021 that the first sale of a home built by a professional developer is subject to 5% VAT and later resales are not taxed again, and whether the printed price already includes VAT is a question for the sale contract. Registration under Royal Decree 79/2025 has its own mechanics, covered in our guide to property registration in Oman.

The arithmetic is plain multiplication: OMR 64,980 times 0.03 is OMR 1,949.40, and OMR 64,980 times 0.05 is OMR 3,249. The 3% and the 5% are not stacked in every case, because VAT applies only to the first sale of a new unit and the stamp duty applies to every acquisition. The Alef Qurum Residence page itself mentions a property transfer fee of about 3% for foreign buyers, in line with the Deloitte rate. Service charges, legal costs and bank charges are separate from these figures.

Oman Withholding Tax Rate: Which Payments Are Covered

Withholding tax is the part of Oman income tax for foreigners that already applies today. It is a tax on payments to non-residents, and it is narrower than many summaries suggest. Deloitte’s table, dated January 2026, shows nil withholding on payments to residents of all three types it lists and 10% on royalties paid to non-residents. The rest of the list comes from its narrative: technical-service fees paid to non-residents carry 10% regardless of where the service is performed, management fees paid to non-residents carry 10% with exceptions such as training and attendance at conferences, and the 10% rates on dividends and on interest paid to non-residents have been indefinitely suspended by a royal directive of 11 January 2023. Rates may be reduced under a tax treaty.

For a landlord the point is the last row: the current withholding categories do not include rent paid to an individual. That changes in 2028 for payers of a certain kind. According to the Times of Oman opinion piece, government bodies, companies and establishments must withhold tax on other income payments, and for non-resident recipients the withholding equals the full tax due. EY reports the same for non-residents and says that, for tax residents, a withholding applies to other income sources where the income exceeds OMR 20,000 from one source. The decree.om commentary says companies and government entities that pay rent, dividends or other income above OMR 20,000 must withhold part of the tax at source. The rate and mechanics of that withholding are for the executive regulation.

The Tax Authority has been preparing payers for this. Its news page records a specialised workshop on withholding tax for government entities, with the page stamped 12 October 2026, covering which services are taxable, how the tax is calculated, who must withhold, the Income Tax Law provisions, treaty methods, registration, returns and collection. Employers also withhold on salaries, pensions and end-of-service gratuities from 2028.

Oman Income Tax for Foreigners: Worked Examples From 2028

The examples apply the method in the calculation table: gross income, minus OMR 42,000 ($109,234), minus allowed costs and exemptions, times 5%. They use two shortcuts that the executive regulation could change. The 15% cost presumption is applied to the rent, and amounts are annual. Rents are illustrations for the arithmetic and are not forecasts. The unit is a two-bedroom of the type priced on our Alef Qurum Residence page at OMR 64,980 ($169,000).

Owner-occupier with a salary

A resident who works in Oman and lives in the flat they own, earning OMR 3,000 a month, has gross income of OMR 36,000 ($93,629). That is below the threshold, so tax is OMR 0 and no return is due. At OMR 4,500 a month the gross income is OMR 54,000 ($140,443); OMR 54,000 ($140,443) minus OMR 42,000 ($109,234) leaves OMR 12,000 ($31,210), and 5% of that is OMR 600 ($1,560). If the executive regulation allows an assumed OMR 4,000 ($10,403) of education and healthcare spending in full, taxable income is OMR 8,000 ($20,806) and the tax is OMR 400 ($1,040). Selling the home later is covered by the primary residence exemption, provided the owner notified the Tax Authority at least two years before the sale.

Landlord with one unit

A resident with a salary of OMR 40,000 ($104,032) lets one unit for OMR 400 a month, which is OMR 4,800 ($12,484) a year. Gross income is OMR 44,800 ($116,516). After the flat amount, OMR 2,800 ($7,282) remains. The 15% presumption is OMR 720 ($1,873), leaving OMR 2,080 ($5,410) taxable, and the tax is OMR 104 ($270). Actual costs would be the service charge of OMR 441 ($1,147) plus a management fee at 8% of rent, which is OMR 384, for OMR 825 ($2,146), higher than the presumption; the taxable amount becomes OMR 1,975 ($5,137) and the tax OMR 98.75 ($257). A non-resident who owns the same unit and has no other Omani income has gross income of OMR 4,800 ($12,484), below the threshold, so personal income tax is OMR 0. In both cases the 3% tenancy registration fee on a 12-month lease is 3% of OMR 4,800 ($12,484), which is OMR 144 ($375).

Landlord with three units

The same resident lets three units at OMR 4,800 each, for rent of OMR 14,400 ($37,452). Gross income is OMR 54,400 ($141,484), and after the flat amount OMR 12,400 ($32,250) remains. The 15% presumption is OMR 2,160 ($5,618), which gives taxable income of OMR 10,240 ($26,632) and a tax of OMR 512 ($1,332). Actual costs are the service charge of OMR 1,323 ($3,441) (three times OMR 441) plus a management fee of OMR 1,152 ($2,996) (8% of rent), for OMR 2,475 ($6,437), so taxable income is OMR 9,925 ($25,813) and the tax OMR 496.25 ($1,291). Here the actual-cost route is lower by OMR 15.75, because the actual costs exceed the presumption by OMR 315. The registration fee on the three leases is OMR 432 ($1,124). A non-resident with the same three units and no other Omani income has gross income of OMR 14,400 ($37,452), so the tax is OMR 0.

Non-resident landlord with larger rents

The threshold can still bite a non-resident who owns a larger portfolio. If a non-resident’s Omani rent is OMR 60,000 ($156,048) in a year, the flat amount leaves OMR 18,000 ($46,814); the 15% presumption is OMR 9,000 ($23,407), so taxable income is OMR 9,000 ($23,407) and the tax is OMR 450 ($1,170). The gross income exceeds the threshold, so a return is due by 30 June of the following year. If the tenant is a company or a government body, the decree.om commentary and the Times of Oman piece indicate the payer must withhold, and for a non-resident the withholding equals the full tax due.

Sale of an investment unit

A resident with a salary of OMR 40,000 ($104,032) sells a unit bought at OMR 64,980 ($169,000) for OMR 90,011 ($234,101). Assume the gain is simply the difference, OMR 25,031 ($65,101), and that it counts in full; the executive regulation may define the base differently. Gross income becomes OMR 65,031 ($169,133), the flat amount leaves OMR 23,031 ($59,899), and 5% is OMR 1,151.55 ($2,995). If the unit qualifies as the once-in-a-lifetime secondary residence and the owner has notified the Tax Authority as required, the gain is exempt and only the salary remains, below the threshold.

Buying Through a Company: Corporate Tax Against Personal Tax

Oman income tax for foreigners who hold property through a company works differently, because a company owner is taxed under a different law. Deloitte gives the corporate income tax rate as 15%, with the same 15% on capital gains, a 3% rate for small companies as defined, losses carried forward for five years and no carry-back, no participation exemption and no holding company regime. Companies file one return with audited financial statements within four months of the end of the accounting year, and late payment normally attracts additional tax of 1% a month. A foreign person with a company in Oman must register with the tax authorities.

Set the rent of OMR 60,000 ($156,048) from the previous section against both routes. For the individual from 2028, the personal tax is OMR 450 ($1,170). For a company, if we assume deductible costs of 15%, the taxable profit is OMR 51,000 ($132,641) and the corporate tax at 15% is OMR 7,650 ($19,896). The two figures do not favour either form, because a company has formation costs, audit costs and rules on distributions that the table does not capture. The comparison shows that the form of ownership changes the rate by a factor of seventeen on these assumptions. Our guide to buying Oman property through a company explains who can hold a title through a company and when a company is permitted at all.

VAT rules also differ for a company. Deloitte records mandatory VAT registration at taxable turnover of OMR 38,500 over 12 months and voluntary registration from OMR 19,250. A company that lets commercial property is making standard-rated supplies, and one that lets homes is making exempt supplies. The commercial listings in our portfolio, such as The Pearl at Muscat Hills, sit on the commercial side of that line.

Filing, Penalties and the Executive Regulation

Filing is annual and electronic. According to the decree.om commentary on Article 33, only a person whose gross income exceeds OMR 42,000 must file, within six months after the year ends, and a person whose only income is a salary or pension from one employer can ask the employer to file. EY gives the date as 30 June of the following year, which makes 30 June 2029 the date for the 2028 tax year.

EY’s alert records the penalty and procedure rules. Late payment attracts an additional 1% a month. Refund claims must be made within five years of payment. Objections must be filed within 45 days and the authority must decide within 90 days. Fines for minor violations reach OMR 5,000, and submitting false returns or forging documents can bring one to three years’ imprisonment and fines of OMR 10,000 to OMR 20,000. These are the statutory ceilings, and the regulation will describe the practical steps.

A practical record set for a foreign owner who will fall inside the rules is short: a day-count log by tax year, the lease and the municipality registration record, receipts for the service charge and management fees, the sale and purchase agreement with dates and prices, the Tax Authority notification for a primary or secondary residence, and a note of any foreign tax paid on the same income. None of this is needed in 2026 for personal income tax purposes, but a record begun in 2027 makes the 2028 return a matter of copying figures.

Oman Income Tax for Foreigners Timeline: 2020 to 2029

The dates below are the ones the sources give. The last column separates what has happened from what is scheduled.

The three decisions published on 28 September 2026 list food items, medicines and healthcare products, and veterinary supplies; none of them covers residential property. The VAT position on homes in the Deloitte January 2026 summary, with exemptions for resale and for residential rent, is therefore the one this article uses.

Taxes are one part of the cost picture of owning in Oman. For the full purchase steps see how to buy property in Oman, for the lowest-priced units see cheap property in Oman for foreigners, for the checks that avoid errors see common mistakes and red flags, and for the other residency path see Oman citizenship by investment. The developers behind the projects in this article are listed in the Oman developer directory, and ongoing letting costs are covered by property management in Oman and service charges in Oman real estate.

Frequently Asked Questions

What is the Oman tax rate?

There is no personal income tax rate in Oman today, and a flat 5% rate starts on 1 January 2028. As of 6 November 2026, the other main rates are 15% corporate income tax, 5% VAT, 3% stamp duty on acquiring real estate and 10% withholding on royalties, technical fees and management fees paid to non-residents. The 5% personal rate applies only to income above OMR 42,000 a year, so an income of OMR 60,000 produces tax of OMR 900.

Oman tax for foreigners: what does a foreigner pay?

Oman income tax for foreigners is nil in 2026, and a foreign owner pays stamp duty of 3% on buying, VAT of 5% on a new unit’s first sale, and a 3% tenancy registration fee if the unit is let. From 2028 a foreigner who is a tax resident pays 5% on income above OMR 42,000, and a non-resident pays on Omani income only. The tax follows presence in Oman, not nationality.

Does Oman tax foreign income?

Oman income tax for foreigners does not reach foreign income in 2026, and from 2028 it taxes the worldwide income of tax residents. A tax resident is a person who spends more than 183 days in Oman in a tax year. A non-resident is taxed only on Omani-source income. KPMG and Deloitte list a one-time temporary exemption for income earned outside Oman, and foreign tax paid can be credited up to the Omani tax.

Is Oman income tax free?

Yes for individuals in 2026, and no from 2028. Deloitte’s Oman Highlights 2026 says neither residents nor non-residents are subject to income or capital gains taxes today. Royal Decree 56/2025 ends that on 1 January 2028 with a 5% tax above OMR 42,000. Oman income tax for foreigners therefore applies only to the part of annual income above that amount, and the Tax Authority estimates that about 99% of the population would not be subject to it.

Is Oman a tax haven?

Oman does not charge personal income tax, property tax or inheritance tax today, but it charges 15% corporate tax, 5% VAT and 3% stamp duty on real estate, and it has legislated a personal income tax. There is no single legal definition of a tax haven, so the useful answer is the list of rates. Oman has also listed 44 double tax agreements on the Tax Authority’s page.

Will Oman introduce income tax?

Yes, it has already legislated it: the personal income tax law took effect by Royal Decree 56/2025, issued on 22 June 2025 and published on 30 June 2025, with the first charge on 1 January 2028. The executive regulation was due within a year of publication. Oman income tax for foreigners will use the same rules as for citizens, with the residence test deciding the base.

What does personal income tax in Oman include?

Oman income tax for foreigners and citizens alike covers eleven listed income sources, among them salaries, self-employment, leasing, royalties, interest, dividends, pensions and gains from real estate disposals. The Oman Observer listed them on 30 June 2025. Sixteen exemptions and deductions apply, including education and healthcare costs, zakat and donations, interest on one primary-residence loan, and the sale of a primary and a secondary residence.

Is there a real estate tax in Oman?

No, there is no annual real estate tax in Oman as of 6 November 2026. Deloitte records no real property tax, no net wealth tax and no inheritance tax. The costs of ownership are 3% stamp duty on acquisition, VAT on a first sale of a new unit, and service charges set by the community, such as OMR 5 per square metre a year on the Alef Qurum Residence listing. Rent is subject to the 3% tenancy registration fee.

What is the Oman withholding tax rate?

The Oman withholding tax rate is 10% on royalties, technical service fees and management fees paid to non-residents, and 0% on dividends and interest because the 10% rates are suspended. Deloitte gives these rates in January 2026, and treaties may reduce them. Rent paid to an individual landlord is not a listed category today. From 2028 the personal income tax law requires payers such as companies to withhold on other income, and for non-residents the full tax due.

What is stamp duty in Oman?

Stamp duty in Oman is a 3% fee on the sales value when real estate is acquired. The Ministry of Housing and Urban Planning cut real estate fees from 5% to 3% from 3 November 2020, according to the Times of Oman. On a unit priced at OMR 64,980 the fee is OMR 1,949.40, and on the OMR 200,000 Golden Residency threshold it is OMR 6,000.

Last checked: 6 November 2026. Sources: Deloitte, Oman Highlights 2026; decree.om, Royal Decree 56/2025; decree.om blog, 13 October 2026; decree.om blog, 24 August 2026; Oman Tax Authority, PIT law announcement; Oman Tax Authority, double tax agreements; Oman Tax Authority, news; Oman Tax Authority, Jersey agreement; Oman Tax Authority, 0% VAT decisions; Oman Tax Authority, Tax Conference 2026; EY, 8 July 2025; KPMG, 26 June 2025; Deloitte, 26 June 2025; Alvarez & Marsal on Legal 500, 25 July 2025; Al Tamimi on Legal 500, 26 June 2025; Times of Oman, 22 August 2026; Times of Oman, 4 November 2020; Times of Oman, 16 April 2021; Oman Observer, 30 June 2025; Oman Observer, 6 February 2021; Oman Observer, 26 April 2021; Gulf News; PwC Tax Summaries; Curtis Oman law blog, March 2016.