One of the biggest reasons foreign investors are drawn to Oman is simple: the tax on property ownership is low today. No annual property tax and no capital gains tax on an individual’s sale of residential property were found in the sources we reviewed, and the main one-time government cost is a 3% registration fee. But “low tax” doesn’t mean “no costs”, and it will not stay that way for income and gains: from 1 January 2028, Royal Decree 56/2025 introduces a personal income tax that lists rent from real estate and proceeds from the disposal of real estate as taxable income. Here is what buyers and investors pay in 2026, and what changes from 2028.
Is there an annual property tax in Oman?
No annual property tax was found. None of the sources we reviewed describes an annual property tax on owned residential property in Oman (we did not obtain a statement from the Oman Tax Authority, and municipal charges were not checked). Once you own a freehold home in an Integrated Tourism Complex (ITC), no yearly property tax bill has been reported, unlike in many European countries or the US. You’ll pay ongoing community service charges to your development (for security, maintenance and amenities), but that’s a service fee to the developer — not a government tax.
The one-time transfer & registration fee
The main government cost when you buy is the property registration (transfer) fee, paid once:
- Sale registration fee: 3% of the asset value, reduced from 5% in November 2020; official-type reports do not state who pays it, and commercial guides say the buyer
- Omani nationals: reported at 1% by some commercial guides; we did not find this rate in an official source
This fee is reported for freehold purchases inside ITC zones, where foreigners are permitted to buy under Oman’s foreign-ownership framework (Royal Decree 12/2006). That decree is the basis of ITC ownership, not of the fee: the 3% rate comes from the November 2020 ministerial decision that cut it from 5% (decision number not found). Foreign ownership is limited to designated areas, chiefly ITCs; see our guide to who can buy property in Oman.
The transfer is completed and the title recorded by the Ministry of Housing and Urban Planning, which administers Oman’s property register. The fee is calculated on the declared purchase price, so the figure on the sale agreement is what the charge is based on.
VAT on property in Oman
Oman applies 5% VAT, but, according to Deloitte and KPMG summaries of the Oman Tax Authority’s real-estate VAT guide (we did not open the guide itself), most residential property transactions are exempt:
| Transaction | VAT |
|---|---|
| First sale of a newly built residential unit | 5% |
| Resale of a residential property | Exempt |
| Sale of undeveloped land | Exempt |
| Residential rentals | Exempt |
| Commercial property sales & rentals | 5% |
On that treatment, VAT would not apply to most individual buyers purchasing a resale unit. It is mainly relevant on brand-new developer stock and commercial assets. Real estate in special zones may be zero-rated subject to conditions, so check the position for your specific project.
Is there capital gains tax when you sell?
Today: no capital gains tax was found on an individual’s sale of residential property in Oman. From 1 January 2028 this changes. Royal Decree 56/2025 lists proceeds from the disposal of real estate as taxable income under the new personal income tax (5% on income above OMR 42,000 a year, according to EY), with exemptions that include the sale of a primary residence and of a secondary residence (a decree.om commentary describes the secondary-residence exemption as available once in a lifetime). The executive regulations were due by 30 June 2026 and we found no report of their issue, so how the tax applies to a sale, and what can be deducted, is not yet clear; advisers also describe differently whether the OMR 42,000 line applies before or after deductions. Investors planning to sell after 1 January 2028 should take advice.
What about rental income?
Today, Oman has no personal income tax, so no personal-level income tax on residential rental income applies to individual landlords. (Residential rent is VAT-exempt; commercial rentals fall under the 5% VAT regime noted above.) Whether other levies apply to rent paid to non-resident owners today was not established: one property guide mentions a landlord tax and a search snippet mentions withholding on certain payments to non-residents, but neither was verified for ordinary property rent, so confirm with a tax adviser. From 1 January 2028, rent from real estate is a listed source of income under Royal Decree 56/2025: residents (present more than 183 days in a tax year) are taxed on worldwide income and non-residents on income from Omani sources, so Omani rent can reach non-resident owners above the OMR 42,000 line (5%; expenses are deductible, according to EY). For buy-to-let in tourist zones like Jebel Sifah and Salalah, income below the threshold would stay outside the new tax, but the position should be reviewed before 2028.
The real closing costs: a worked example
Beyond the headline transfer fee, budget for agent commission, legal and registration paperwork, and (if you finance) mortgage fees. Here is an illustrative breakdown based on assumptions for a OMR 100,000 (~$260,000) resale apartment. Only the 3% registration fee and the VAT treatment are sourced; the agency and legal figures are assumptions, since no official or law-firm figure was found:
| Cost | Rate | Amount (OMR) |
|---|---|---|
| Transfer / registration fee | 3% | 3,000 |
| VAT (resale — exempt) | 0% | 0 |
| Agency fee (assumed) | ~2% (assumed) | 2,000 |
| Legal & registration admin (assumed) | — | ~500–1,000 (assumed) |
| Total add-on costs (illustrative) | ~5–6% | ~5,500–6,000 |
As an illustrative assumption, not a sourced figure, some buyers budget roughly 3–10% on top of the purchase price at completion, depending on whether the unit is new-build (VAT), whether you use a mortgage, and the agent’s fee. Only the 3% registration fee and the VAT treatment can be tied to a source; agency, legal and mortgage costs are set by the market and by individual lenders, so ask for a written estimate for your own purchase.
How Oman compares in the Gulf
Oman’s 3% registration fee compares with Dubai’s 4% Land Department fee in total (2% buyer and 2% seller on the DLD sale-registration page, plus flat fees). Today, no annual property tax and no capital gains tax were found in Oman, and its entry prices are often lower. From 1 January 2028, however, Oman’s personal income tax lists rent and real-estate disposal proceeds as taxable income above OMR 42,000 a year, so the comparison with the UAE should be revisited once the executive regulations are published.
One thing to watch: the 2028 personal income tax
Oman has enacted a personal income tax that takes effect on 1 January 2028 (Royal Decree 56/2025). According to EY, it is 5% on income above OMR 42,000 a year, and it is not limited to employment pay: rent from real estate and proceeds from the disposal of real estate are listed sources of income, with exemptions that include the sale of a primary residence and of a secondary residence. Residents (present more than 183 days in a tax year) are taxed on worldwide income and non-residents on income from Omani sources. It is an income tax, not an annual property tax, but it does reach property income and gains. The executive regulations were due by 30 June 2026 and we found no report of their issue. Sources also differ on mechanics: EY and a decree.om commentary describe 5% on gross income above OMR 42,000, while KPMG and PwC summaries describe it after deductions. Until the regulations are published, the details for property investors remain unconfirmed.
Fiscal policy and the wider tax framework are set at national level and published through official government channels, with economic data available from the National Centre for Statistics and Information. Because the personal income tax is a future measure, confirm the current position before making decisions that depend on it.
Oman Property Tax Vs UAE, Cyprus And Turkey
For investors comparing multiple markets, Oman’s overall tax burden on property ownership looks light today once you look past the headline transfer fee, but the personal income tax from 1 January 2028 changes the picture for rent and sales:
- Oman: 3% one-time registration fee (payer not stated in official-type reports), no annual property tax found, no capital gains tax on an individual’s sale found today and no personal income tax on rent today; from 1 January 2028, rent and real-estate disposal proceeds are taxable income at 5% above OMR 42,000 a year, with primary- and secondary-residence exemptions on sales.
- UAE (Dubai): 4% one-time transfer fee, no annual property tax, no capital gains tax, but a 5% VAT applies more broadly to certain property services and commercial transactions.
- Cyprus: Transfer fees scale with property value (historically up to 8% on higher-value purchases, though various exemptions and reductions have applied at different points), plus an immovable property-related stamp duty on the purchase contract itself and capital gains tax on eventual resale in most cases — a materially higher lifetime tax burden than Oman for a comparable hold period.
- Turkey: A roughly 4% title deed fee (commonly split between buyer and seller), an annual municipal property tax that recurs every year of ownership, and capital gains tax on resale within a defined holding period.
The practical upshot: Oman and the UAE sit closest together on transaction costs, while on today’s rules Oman compares favourably with Cyprus and Turkey because no annual property tax or capital gains tax was found there — two costs that weigh on long-term returns in those markets. From 2028, Oman’s income tax narrows part of that gap for owners whose rent and sale proceeds push their income above OMR 42,000 a year. This all-in mindset, rather than fixating on the headline transfer-fee percentage alone, is a sensible way to compare true affordability across different Oman communities and against other international markets.
Service Charges: The Real Ongoing Cost Of Ownership
While Oman has no government property tax, owning inside an ITC does come with annual service charges set by the developer or community management under the project’s bylaws. These cover shared facility maintenance, security, landscaping, and amenity upkeep — marina berths, golf courses, or beach clubs depending on the development. Service charges vary significantly by community and unit size, and are a recurring cost buyers should factor into net yield calculations, since they are not optional and apply regardless of whether the unit is occupied or rented. Established, amenity-rich communities like Al Mouj or Muscat Bay may carry higher service charges than newer or more modest developments, reflecting the larger shared infrastructure being maintained; no official service-charge amounts were found, so treat this as a general expectation, not a sourced comparison. Always request the specific service charge schedule for your target unit directly from the developer, the community management or your broker before purchase — development-wide averages can be misleading given how much charges vary by collection.
| Community Type | Indicative Service Charge Level (illustrative, not sourced) | What It Covers |
|---|---|---|
| Resort ITC with marina or golf | Highest | Shared amenities, beach, landscaping, security |
| Established coastal community | High | Pools, gyms, common areas, security |
| Planned urban district | Moderate | Common areas, landscaping, security |
| Industrial-zone development | Lowest | Basic common-area maintenance |
Buying Through A Company Vs As An Individual
Most foreign buyers purchase Oman property in their personal name, which is the simplest route and the one assumed throughout this guide. Some investors, particularly those buying multiple units or planning to hold property as part of a broader portfolio, instead purchase through a corporate structure. Doing so can affect which fees and VAT treatment apply, particularly around commercial-use classification, and may have implications for inheritance and succession planning that differ from personal ownership. Buyers considering a corporate purchase structure should take specific tax and legal advice before proceeding, since the right structure depends heavily on residency status, home-country tax treatment, and long-term intentions for the property.
Mortgage-Related Costs For Foreign Buyers
Buyers financing their purchase through an Oman-based bank should budget for additional costs beyond the property’s own transfer fee, including bank arrangement or processing fees, property valuation fees required by the lender, and mortgage registration costs at the land registry. These vary by bank and loan size, and are separate from the standard 3% government transfer fee, so financed purchases should generally budget a somewhat higher total percentage on top of the purchase price than an all-cash transaction. Buyers should request a full costs breakdown from their chosen lender early in the process, since arrangement fees and valuation requirements differ meaningfully between banks. These figures are a general guide rather than a substitute for a personalised quote, and buyers should always request a written cost estimate for their specific transaction before signing a reservation agreement, since exact fees can vary by broker, bank, and development.
| Mortgage Cost | Typical Level | Notes |
|---|---|---|
| Arrangement / processing fee | A percentage of the loan | Charged by the lender at drawdown |
| Valuation fee | Fixed fee | Required before approval |
| Mortgage registration | Government charge | Registered against the title |
| Life / property insurance | Annual premium | Usually mandatory for the loan term |
Lending terms for foreign and non-resident buyers are set at bank level. We did not find a Central Bank of Oman rule setting a separate loan-to-value limit for non-residents. Bank product pages published in 2026 show, for example, BankDhofar offering up to 70% of property value and Sohar International 70% for resident and 50% for non-resident expatriates, in both cases for ITC projects registered with the bank. Fees vary between lenders, so compare total cost rather than headline rate alone.
Costs When Selling Your Oman Property
Selling triggers its own set of costs, separate from the taxes covered above. Sellers typically pay agency commission on the sale (commonly a percentage of the sale price, sometimes split with the buyer depending on the listing agreement), along with any outstanding service charges up to the point of transfer. Because no capital gains tax on personal property was found under current rules, the gain itself is not taxed today — but sales completed from 1 January 2028 may fall under the new personal income tax, which lists real-estate disposal proceeds as income (with primary- and secondary-residence exemptions), and transaction-level costs still apply and should be factored into any exit-strategy planning, particularly for investors modelling total holding-period returns rather than just entry costs.
Tax Residency And Rental Income Considerations
While Oman does not currently levy a personal income tax on rental income (other levies on rent paid to non-resident owners were not established), and the 2028 income tax will list rent from real estate as taxable income — residents on worldwide income, non-residents on Omani-source income, 5% above OMR 42,000 a year — foreign owners should be aware that their home country’s tax rules may still apply to income generated from an Oman property, depending on their tax residency status. Many jurisdictions tax residents on worldwide income, including rental income earned abroad, regardless of whether Oman itself taxes it locally. Investors should confirm their specific reporting obligations with a tax advisor in their country of residence, since Oman’s local tax treatment does not automatically exempt income from taxation elsewhere.
Worked Examples At Different Price Points
Because total closing costs scale with purchase price, it helps to see the numbers at a few different budget levels. These examples assume a resale (VAT-exempt) freehold apartment purchased in cash. The 2% agency fee and the legal and admin amounts are assumptions for illustration, not sourced figures:
- OMR 60,000 entry-level apartment (e.g. Sohar or Yiti): transfer fee approximately OMR 1,800, agency fee approximately OMR 1,200, legal and admin roughly OMR 500–800 — total add-on costs of roughly OMR 3,500–3,800, or about 6% on top of the purchase price.
- OMR 200,000 ITC unit at the Golden Residency minimum value: transfer fee approximately OMR 6,000, agency fee approximately OMR 4,000, legal and admin roughly OMR 800–1,200 — total add-on costs of roughly OMR 10,800–11,200, or around 5.5% on top of the purchase price.
- OMR 450,000 villa (e.g. Al Mouj or Muscat Bay): transfer fee approximately OMR 13,500, agency fee approximately OMR 9,000, legal and admin roughly OMR 1,000–1,500 — total add-on costs of roughly OMR 23,500–24,000, or around 5.2% on top of the purchase price.
These figures are illustrative assumptions rather than sourced costs or quotes. Only the 3% registration fee and the VAT treatment are sourced; no official or law-firm figure for agency or legal fees was found, and actual amounts vary by broker and by the specifics of each transaction. On these assumptions, total add-on costs come to roughly 5–6% for a cash resale purchase; request a written estimate for your own purchase.
New-Build Versus Resale: The VAT Difference In Practice
According to Deloitte and KPMG summaries of the Oman Tax Authority’s real-estate VAT guide, 5% VAT applies to the first supply of a new residential unit by a developer, and resales of residential property are exempt, so it does not apply again if that same unit is later resold on the secondary market. How VAT is charged on off-plan payment instalments (stage by stage, or on the developer’s first sale of a completed unit) was not verified, so ask the developer how and when VAT is invoiced. This means two functionally identical apartments in the same building — one purchased new from the developer, one purchased resale from an existing owner — can carry meaningfully different total transaction costs, with the resale option often working out cheaper once VAT is factored in, even if the headline resale price is similar to or slightly above the original developer price. Buyers comparing new-build and resale options in the same community should always request an all-in cost comparison rather than comparing headline prices alone.
How Oman’s Tax Framework Supports The Golden Residency Programme
The tax and fee side of a purchase is separate from the residency rules. The Golden Residency requires at least OMR 200,000, and its real estate route covers residential, commercial or tourism units in an ITC with a valid title deed, not any property above that value; it gives a renewable 10-year residency. The Owner Visa is a different, sponsor-free permit (ROP Decision 87/2026, in force from 22 June 2026) with no minimum property value, and it is not tied to the Golden Residency threshold. The registration fee and VAT described above apply to the purchase itself, and no annual property tax was found for owners, but the personal income tax from 1 January 2028 will also be relevant to rent and sale proceeds. For the full breakdown of how the purchase threshold and residency terms work, see our dedicated guide to Oman’s Golden Residency vs. the Owner Visa.
Are There Any Hidden Government Fees Beyond The 3% Transfer Fee?
Beyond the core registration/transfer fee, buyers should budget for minor administrative charges tied to title registration and, where applicable, utility connection fees on handover of a new unit. The amounts were not found in the sources we reviewed, so it is worth requesting an itemised cost estimate from your broker or the developer before completion so there are no surprises at closing.
Does The 3% Transfer Fee Apply To Off-Plan Payment Instalments?
The timing of the registration fee for off-plan purchases was not established from official sources. As we read Royal Decree 79/2025, off-plan sales on the mainland are recorded in the Preliminary Real Estate Register, the Ministry’s registration fee applies to the sale contract and the developer makes no charge for moving the unit to the main register; the amount of the fee for this step was not found. Buyers should confirm the exact timing and amount with the developer and the Ministry, as payment plan structures can vary.
Will Oman’s 2028 Income Tax Affect Existing Property Owners?
Oman’s personal income tax under Royal Decree 56/2025 takes effect on 1 January 2028. It is not a property tax, but it lists rent from real estate and proceeds from the disposal of real estate as taxable income (5% above OMR 42,000 a year, according to EY), with exemptions for a primary and a secondary residence. Existing owners should therefore not assume that the current absence of capital gains tax continues: a sale after 1 January 2028 could fall within the new tax, and rent from 2028 would count towards income, for residents on worldwide income and for non-residents on Omani-source income. The executive regulations were due by 30 June 2026 and we found no report of their issue, so any transitional treatment of property already owned, and whether the OMR 42,000 line applies before or after deductions, are unconfirmed.
| Country | Annual Property Tax | Rental Income Tax | Capital Gains Tax |
|---|---|---|---|
| Oman | None found | None today (5% above OMR 42,000 a year from 1 Jan 2028) | None found today (disposal proceeds taxable from 1 Jan 2028, with residence exemptions) |
| UAE | None | None | None |
| Cyprus (South) | Annual charges apply | Taxed | Applies |
| Türkiye | Annual charge | Taxed | Applies above thresholds |
A Practical Tax Checklist For First-Time Oman Buyers
Pulling the above together, here is a practical sequence for budgeting the tax and fee side of an Oman purchase:
- Confirm whether the unit is new-build (VAT may apply) or resale (VAT-exempt), since this materially changes total cost.
- Request the current service charge schedule for the specific unit, not a development-wide average.
- Ask your broker for an itemised closing-cost estimate covering the 3% transfer fee, agency commission, and legal/admin costs.
- If financing, request a full fee breakdown from your chosen lender, including arrangement, valuation, and mortgage registration costs.
- If targeting the Golden Residency, confirm that the unit is in an ITC, has a valid title deed and clears the OMR 200,000 minimum, and ask the authority whether fees count towards that value. The Owner Visa has no minimum property value.
- Check your home-country tax residency rules on foreign rental income and capital gains, since Oman’s local tax treatment does not override obligations elsewhere, and allow for Oman’s own personal income tax from 1 January 2028.
Working through this checklist before signing a reservation agreement generally prevents the most common surprise costs buyers encounter at completion.
Why Oman’s Tax Environment Matters For Long-Term Investors
Today, the combination of no annual property tax, no capital gains tax on an individual’s sale of residential property (neither was found in the sources we reviewed) and a 3% one-time registration fee keeps the tax cost of holding Oman property low compared with markets that tax holding and exit. From 1 January 2028 the picture changes for income and gains: Royal Decree 56/2025 taxes rent from real estate and proceeds from the disposal of real estate under a personal income tax of 5% above OMR 42,000 a year, with exemptions for a primary and a secondary residence. Over a five-to-ten-year holding period, an investor should therefore model two regimes, the current rules until the end of 2027 and the new tax from 2028, whose executive regulations we had not found when this article was updated. The entry cost matters, but so does what an owner keeps at each stage of the holding period, from annual cash flow through to the eventual sale.
Do Service Charges Count Toward The Golden Residency Investment Threshold?
No source we reviewed counts service charges towards the OMR 200,000 Golden Residency minimum, which relates to the value of qualifying ITC units with a valid title deed rather than to ongoing costs paid after purchase. Buyers should confirm with the competent authority exactly which value counts when structuring a purchase close to the threshold.
Can Service Charges Increase After I Buy?
Yes, service charges can be adjusted: they are set by the developer under the project’s bylaws, and one ministerial decree (for Jebel Sifah) has an independent audit firm review the accounts and annual fees. Adjustments are generally expected to be in line with the actual cost of maintaining shared facilities. Buyers should ask about historical service charge trends for a specific development, not just the current rate, when evaluating long-term ownership costs.
Do I Pay Tax On Rental Income If I’m Not An Oman Tax Resident?
Today, Oman has no personal income tax, and we found no income tax on rental income for non-resident owners; whether other levies apply to rent paid to non-residents was not established, so confirm with a tax adviser. From 1 January 2028, non-residents are taxed on income from Omani sources under Royal Decree 56/2025 and rent from real estate is a listed source, so non-resident landlords could owe 5% on income above OMR 42,000 a year (whether the line applies before or after deductions is unconfirmed until the executive regulations are published). Your rental income may also be taxable in your home country depending on its worldwide-income rules, so this should be confirmed separately with a tax advisor there rather than assumed exempt everywhere simply because Oman does not tax it today.
Are Legal Fees Mandatory When Buying Property In Oman?
Independent legal review is not strictly mandatory, but it is strongly recommended, particularly for off-plan purchases or resale transactions where title history needs verification. The modest cost of legal review is generally small relative to the protection it provides against title or contract issues discovered after completion.
Frequently asked questions
Does Oman have an annual property tax?
No annual property tax was found in the sources we reviewed (not confirmed with the Oman Tax Authority). Owners pay community service charges to their development.
How much is the property transfer fee in Oman?
The sale registration (transfer) fee is 3% of the asset value, cut from 5% in November 2020 by a ministerial decision. Official-type reports do not state who pays it; commercial guides say the buyer. Some commercial guides give 1% for Omani nationals, a rate we did not find in an official source.
Do I pay VAT when buying property in Oman?
According to Deloitte and KPMG summaries of the Oman Tax Authority’s real-estate VAT guide, 5% applies to the first supply of newly built residential units and to commercial property. Resales of residential property, undeveloped land and residential rentals are exempt.
Is there capital gains tax in Oman?
Today, no capital gains tax on an individual’s sale of residential property was found in Oman. From 1 January 2028, Royal Decree 56/2025 lists proceeds from the disposal of real estate as taxable income (5% above OMR 42,000 a year), with exemptions for a primary and a secondary residence; the executive regulations had not been found when this article was updated.
What are the total costs of buying property in Oman?
Only the 3% registration fee and the VAT treatment are sourced. Agency, legal and mortgage costs are set by the market and by lenders; as an illustrative assumption only, some buyers budget roughly 3–10% on top of the purchase price. Ask for a written estimate for your own purchase.
