Authored by the expert who managed and guided the team behind the Oman Property Pack
Yes, the analysis of Muscat's property market is included in our pack
Buying property in Muscat as a foreigner involves several costs beyond the purchase price, and understanding them upfront will help you budget accurately.
Oman offers one of the most tax-friendly property environments in the Gulf region, with no annual property tax and no capital gains tax for individual investors.
We constantly update this blog post to reflect the latest fee changes and regulatory updates affecting foreign buyers in Muscat.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Muscat.
Overall, how much extra should I budget on top of the purchase price in Muscat in 2026?
How much are total buyer closing costs in Muscat in 2026?
As of early 2026, foreign buyers in Muscat should expect total closing costs to range from 5% to 8% of the purchase price, which translates to OMR 5,000 to OMR 8,000 (around USD 13,000 to USD 20,800 or EUR 12,000 to EUR 19,200) for every OMR 100,000 spent.
The minimum extra budget possible in Muscat is around 3.1%, which covers only the mandatory government transfer fee of 3% plus the OMR 10 title deed issuance fee (approximately USD 26 or EUR 24).
The maximum extra budget buyers should plan for in Muscat can reach 10% to 13% when you add agent commission, legal fees, mortgage registration costs, and translation services to the base government fees.
Whether your closing costs fall at the low end or high end depends mainly on three factors in Muscat: whether you use a real estate agent (adding up to 3%), whether you take out a mortgage (adding 0.5% to 1%), and whether you need extensive legal or translation support as a foreigner.
What's the usual total % of fees and taxes over the purchase price in Muscat?
The usual total percentage of fees and taxes over the purchase price in Muscat for a foreign buyer is approximately 5% to 7% in a typical transaction involving a broker and basic legal support.
The realistic low-to-high percentage range that covers most standard property transactions in Muscat runs from about 3% for a cash deal with no agent to around 10% for a financed purchase with full professional support.
Of that total percentage in Muscat, the government portion (the 3% transfer fee) represents the largest single item, while professional service fees including agents, lawyers, and translators make up the remaining 2% to 4%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Muscat.
What costs are always mandatory when buying in Muscat in 2026?
As of early 2026, the mandatory costs when buying property in Muscat include the 3% government transfer and registration fee paid to the Ministry of Housing and Urban Planning, plus the OMR 10 (approximately USD 26 or EUR 24) title deed issuance fee.
Optional but highly recommended costs for buyers in Muscat include independent legal due diligence on the title and developer (OMR 200 to OMR 800), a property valuation report (OMR 100 to OMR 250), and translation services if you are not comfortable reading Arabic documents (OMR 50 to OMR 200).
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What taxes do I pay when buying a property in Muscat in 2026?
What is the property transfer tax rate in Muscat in 2026?
As of early 2026, the property transfer tax rate in Muscat for foreign buyers is 3% of the purchase price, paid to the Ministry of Housing and Urban Planning at the time of ownership registration.
There is no separate additional transfer tax specifically for foreigners in Muscat, although Omani nationals benefit from a reduced rate of 1% following the January 2025 fee reforms, which means foreigners effectively pay more.
Buyers in Muscat do not pay VAT on residential property purchases in most cases because the resale of residential real estate is VAT-exempt under Oman Tax Authority guidelines, though the first supply from a developer may attract 5% VAT.
Stamp duty in Muscat is essentially the same as the transfer fee, as Oman does not have a separate stamp duty system; the 3% registration fee functions as the equivalent charge payable at property transfer.
Are there tax exemptions or reduced rates for first-time buyers in Muscat?
There is no broad first-time buyer tax exemption or reduced rate program in Muscat as of early 2026, although certain groups such as low-income earners and persons with disabilities may qualify for fee exemptions under the January 2025 MOHUP reforms.
If you buy property through a company instead of as an individual in Muscat, the transfer fee still applies, but ongoing rental income or business profits become subject to Oman's 15% corporate income tax rate.
The main tax difference between buying a new-build and a resale property in Muscat is VAT: resale residential purchases are VAT-exempt, while first supplies from developers can attract the standard 5% VAT rate.
To qualify for the limited exemptions available in Muscat, buyers must provide documentation proving their status (such as income certificates for low-income exemptions) and apply through the Ministry of Housing's official channels.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Oman versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Muscat in 2026?
How much does a notary or conveyancing lawyer cost in Muscat in 2026?
As of early 2026, notary services in Muscat for property-related items such as a Power of Attorney cost approximately OMR 5 (around USD 13 or EUR 12) per document according to the Supreme Judicial Council manual, while conveyancing lawyer fees typically range from OMR 300 to OMR 800 (USD 780 to USD 2,080 or EUR 720 to EUR 1,920) for a standard residential transaction.
Lawyer fees in Muscat are typically charged as a flat rate for straightforward purchases, though some lawyers may charge 0.4% to 0.8% of the property value for more complex transactions involving developer contracts or escrow arrangements.
Translation and interpreter services for foreign buyers in Muscat usually cost between OMR 50 and OMR 200 (USD 130 to USD 520 or EUR 120 to EUR 480), depending on the number of documents and whether you need an interpreter present at signing.
Most foreign buyers purchasing for personal use in Muscat do not need a separate tax advisor, but if you plan to rent out the property or buy through a company, budgeting OMR 150 to OMR 400 (USD 390 to USD 1,040 or EUR 360 to EUR 960) for a one-off advisory session is sensible.
We have a whole part dedicated to these topics in our our real estate pack about Muscat.
What's the typical real estate agent fee in Muscat in 2026?
As of early 2026, the typical real estate agent fee in Muscat is around 2% to 3% of the purchase price, with the brokerage law establishing 3% as the default estimate in case of disputes.
In Muscat, the agent fee is paid by whichever party authorized the broker, so if you as the buyer engaged the agent, you would typically pay; if both parties authorized the broker, each pays half according to Oman's brokerage regulations.
The realistic low-to-high range for agent fees in Muscat runs from 2% on the low end (often negotiable for higher-value properties) to 3% as the standard rate, translating to OMR 2,000 to OMR 3,000 (USD 5,200 to USD 7,800 or EUR 4,800 to EUR 7,200) per OMR 100,000 of property value.
How much do legal checks cost (title, liens, permits) in Muscat?
Legal checks in Muscat including title search, encumbrance verification, and permits review typically cost between OMR 200 and OMR 600 (USD 520 to USD 1,560 or EUR 480 to EUR 1,440) for a standard transaction, rising to OMR 600 to OMR 1,200 (USD 1,560 to USD 3,120 or EUR 1,440 to EUR 2,880) for complex deals involving developers or escrow arrangements.
Property valuation fees in Muscat typically range from OMR 100 to OMR 250 (USD 260 to USD 650 or EUR 240 to EUR 600), and this service is usually required if you are taking out a mortgage or want an independent price check.
The most critical legal check that should never be skipped in Muscat is verifying that the property is located within an approved Integrated Tourism Complex where foreign ownership is legally permitted, as purchasing outside these zones means you cannot legally register the title in your name.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Muscat.
Get the full checklist for your due diligence in Muscat
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What hidden or surprise costs should I watch for in Muscat right now?
What are the most common unexpected fees buyers discover in Muscat?
The most common unexpected fees buyers discover in Muscat include the 5% VAT on new-build first supplies (which many assume does not apply to residential), service charges in managed communities (OMR 40 to OMR 120 per month), and broker commission ambiguity when the payment responsibility was not clearly agreed in writing.
Yes, there can be unpaid service charges or utility balances that a buyer could inherit when purchasing property in Muscat, so it is essential to request clearance certificates from the community management and utility providers before completing the transaction.
Scams involving fake listings or fabricated fees do occur in Muscat, and the best protection is to only pay government fees through official MOHUP and Gov.om channels and to insist on written invoices for any "processing" charges claimed by intermediaries.
Fees that are often not disclosed upfront by sellers or agents in Muscat include community service charge arrears, outstanding utility bills, and the potential VAT liability on first supply developer purchases.
In our property pack covering the property buying process in Muscat, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Muscat?
If the property in Muscat has an existing tenant, buyers may face extra costs including the 3% municipal rental contract fee (calculated on the annual rent value), potential service charge arrears, and administrative costs for transferring the tenancy registration, which together can add OMR 100 to OMR 500 (USD 260 to USD 1,300 or EUR 240 to EUR 1,200) depending on the rent level.
The legal obligation buyers inherit when purchasing a tenanted property in Muscat is to honor the existing lease until its natural expiry, as Omani law protects tenants from immediate eviction following a change of ownership.
Terminating an existing lease immediately after purchase is generally not possible in Muscat unless the lease contains a specific break clause or the tenant agrees to vacate voluntarily, so buyers should factor the existing tenancy term into their plans.
A sitting tenant in Muscat typically reduces the pool of owner-occupier buyers but can be attractive to investors, and the property may sell at a slight discount (3% to 5%) compared to a vacant equivalent, though strong rental income can offset this in negotiations.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Muscat.
We have made this infographic to give you a quick and clear snapshot of the property market in Oman. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Muscat?
Which closing costs are negotiable in Muscat right now?
The closing costs that are negotiable in Muscat include the real estate agent commission rate and who pays it, lawyer fee structures (flat versus percentage-based), and occasionally developer admin fees during promotional periods.
The closing costs that are fixed by law and cannot be negotiated in Muscat include the 3% government transfer and registration fee and the OMR 10 title deed issuance fee, both of which are set by the Ministry of Housing and Urban Planning.
The typical discount or reduction buyers can realistically achieve on negotiable fees in Muscat is around 0.5% to 1% off the agent commission for higher-value properties, and some lawyers may offer a 10% to 20% fee reduction if the transaction is straightforward.
Can I ask the seller to cover some closing costs in Muscat?
The likelihood that a seller will agree to cover some closing costs in Muscat is moderate, as it depends heavily on market conditions and how motivated the seller is, but it is a recognized negotiation point especially for the agent commission.
The specific closing costs sellers are most commonly willing to cover in Muscat are the real estate agent commission (since Oman's brokerage law explicitly ties commission to whoever authorized the broker) and sometimes minor admin or handover fees.
Sellers in Muscat are more likely to accept covering closing costs when the property has been on the market for an extended period, when they are relocating urgently, or in a buyer's market with plenty of comparable inventory available.
Is price bargaining common in Muscat in 2026?
As of early 2026, price bargaining is common and expected in Muscat's residential property market, with most sellers anticipating some negotiation before agreeing to a final price.
Buyers in Muscat typically negotiate between 3% and 8% below the asking price in normal circumstances, which translates to OMR 3,000 to OMR 8,000 (USD 7,800 to USD 20,800 or EUR 7,200 to EUR 19,200) off every OMR 100,000 of listed price, with motivated sellers or older listings sometimes accepting discounts of 8% to 12%.
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What monthly, quarterly or annual costs will I pay as an owner in Muscat?
What's the realistic monthly owner budget in Muscat right now?
The realistic monthly owner budget in Muscat for a typical apartment in a managed community is approximately OMR 65 to OMR 200 (USD 170 to USD 520 or EUR 155 to EUR 480), covering service charges and utilities.
The main recurring expense categories that make up this monthly budget in Muscat are community service charges (OMR 40 to OMR 120 per month), electricity and water (OMR 25 to OMR 80 per month depending on air conditioning usage), and optional home insurance.
The realistic low-to-high range for monthly owner costs in Muscat runs from about OMR 50 (USD 130 or EUR 120) for a modest apartment with basic amenities to OMR 300 (USD 780 or EUR 720) or more for a large villa in a premium community with pools, gyms, and concierge services.
The monthly cost that tends to vary the most in Muscat is the electricity bill, because air conditioning accounts for a significant portion of consumption and usage patterns change dramatically between the cooler winter months and the hot summer season.
You can see how this budget affect your gross and rental yields in Muscat here.
What is the annual property tax amount in Muscat in 2026?
As of early 2026, there is no annual property tax on residential real estate ownership in Muscat, making Oman one of the most tax-friendly property markets in the region for individual owners.
Because Muscat has no annual property tax, there is no low-to-high range to quote; the recurring government-style charge most relevant to owners comes through the 3% municipal rental tax on rental income if you lease out your property.
Since there is no annual property tax in Muscat, there is no calculation method based on cadastral or market value; the only property-related government fee is the one-time 3% transfer fee at purchase and the ongoing 3% municipal tax if you earn rental income.
Exemptions or reductions for certain property owners in Muscat apply mainly to the purchase-time transfer fee (for qualifying groups like low-income earners or persons with disabilities), not to any annual tax, because no such annual tax exists.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Oman. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Muscat in 2026?
What tax rate applies to rental income in Muscat in 2026?
As of early 2026, the main tax on rental income in Muscat is the 3% municipal rental tax calculated on the gross annual rent, as there is currently no personal income tax in Oman (though one is legislated to begin in 2028).
Landlords in Muscat can generally deduct expenses from corporate tax calculations if renting through a company, but for individual landlords paying the municipal tax, the 3% is calculated on gross rent without deductions for management costs, maintenance, or vacancy periods.
The realistic effective tax rate range after deductions for typical landlords in Muscat is simply the 3% municipal tax for individuals, while company landlords face the 15% corporate income tax on net profit after allowable deductions.
Foreign property owners do not pay a different rental income tax rate than residents in Muscat as of early 2026, with both subject to the same 3% municipal rental tax and exempt from personal income tax until 2028.
Do I pay tax on short-term rentals in Muscat in 2026?
As of early 2026, short-term rentals in Muscat may attract 5% VAT if they are structured like hotel or serviced accommodation, because the Oman Tax Authority excludes hotel-style stays from the residential rental exemption.
Short-term rental income can be taxed differently than long-term rental income in Muscat, since short-term stays resembling tourist accommodation fall under standard-rated VAT at 5%, whereas long-term residential leases remain VAT-exempt and subject only to the 3% municipal tax.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Muscat.
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If I sell later, what taxes and fees will I pay in Muscat in 2026?
What's the total cost of selling as a % of price in Muscat in 2026?
As of early 2026, the estimated total cost of selling a residential property in Muscat is approximately 3% to 5% of the sale price, primarily composed of agent commission and minor legal or administrative fees.
The realistic low-to-high percentage range for total selling costs in Muscat runs from about 2% (if you sell without an agent and handle paperwork yourself) to around 5% (if you pay the full 3% agent commission plus legal and marketing costs).
The specific cost categories that typically make up the total selling cost in Muscat include the real estate agent commission (2% to 3%), marketing and listing fees (if applicable), legal document preparation, and any outstanding service charge clearances.
The single largest contributor to selling expenses in Muscat is usually the real estate agent commission, which at 3% of the sale price far exceeds any other individual selling cost.
What capital gains tax applies when selling in Muscat in 2026?
As of early 2026, there is no capital gains tax for individual property sellers in Muscat, meaning foreign investors can sell their residential properties and keep the full profit without any tax on the gain.
Exemptions to capital gains tax in Muscat are universal for individual sellers because Oman simply does not impose this tax on property sales by individuals, regardless of holding period, residency status, or whether the property was a primary residence.
Foreigners do not pay extra taxes or a different capital gains rate when selling property in Muscat, as the zero capital gains tax treatment applies equally to Omani nationals and foreign investors selling residential real estate.
Since there is no capital gains tax in Muscat for individuals, there is no official calculation method; however, if you sell through a company, the profit forms part of corporate income taxed at 15%, calculated as sale price minus purchase price and allowable expenses.
We made this infographic to show you how property prices in Oman compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Muscat, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Oman Government Services Portal (Gov.om) | Official Oman e-government page showing Ministry of Housing service fees. | We used it to anchor the 3% government transfer fee and the OMR 10 title deed issuance fee. We treat it as the primary reference for what the state actually charges. |
| Oman Tax Authority (OTA) | Official tax authority portal publishing VAT law and executive regulations. | We used it to confirm VAT treatment on residential property sales and rentals. We referenced the OTA real estate taxpayer manual for first supply and resale distinctions. |
| Ministry of Housing and Urban Planning (MOHUP) | The ministry's official entry point to real estate registry services. | We used it to verify that property transactions must go through official MOHUP channels. We also checked process-related assumptions about title deed issuance. |
| Royal Decree 78/86 on Brokerage (MOHUP) | Official legal text describing broker commissions and payment responsibility. | We used it to establish the 3% agent commission default and clarify who pays. We treat this as our anchor for agent fee budgeting. |
| Supreme Judicial Council (SJC) | Official judiciary publication describing notary services and fees. | We used it to budget notary-type items like Power of Attorney (OMR 5 service fee). We then added realistic translation and interpreter estimates on top. |
| Muscat Municipality | The municipality's own published fee tool for rental contract charges. | We used it to pin down the 3% municipal rental tax in Muscat. We reference this for all rental income-related cost calculations. |
| PwC Worldwide Tax Summaries | Long-standing Big 4 reference regularly maintained and widely cited. | We used it to confirm the 15% corporate income tax rate and verify the absence of capital gains tax for individuals. We treat it as an investor-friendly cross-check. |
| Muscat Daily | Major local newspaper reporting on MOHUP fee revisions. | We used it to contextualize the January 2025 fee changes affecting transfer costs. We treat it as secondary confirmation rather than the sole source. |
| Times of Oman | Major local outlet with coverage attributed to Oman News Agency. | We used it as independent media confirmation of the MOHUP fee revision package. We cross-checked actual fees against official portals. |
| Zawya | Widely used regional business news wire aggregating official statements. | We used it to triangulate that fee reforms were broadly reported beyond local press. We still anchored specific amounts to official portals. |
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