Authored by the expert who managed and guided the team behind the Oman Property Pack
Everything you need to know before buying real estate is included in our Oman Property Pack
Property investment in Oman involves various taxes and fees that significantly impact your total acquisition and ownership costs. Understanding these costs upfront helps you budget accurately for your Oman real estate investment and avoid unexpected expenses during the purchase process.
If you want to go deeper, you can check our pack of documents related to the real estate market in Oman, based on reliable facts and data, not opinions or rumors.
Property buyers in Oman face a 3% government transfer fee, various registration costs ranging from OMR 10-100, and agent commissions of 2-3% of the purchase price.
Foreign buyers can only purchase in designated ITC zones and face additional approval fees, while GCC citizens enjoy broader purchasing rights with standard fees.
| Fee Category | Rate/Amount | Paid By |
|---|---|---|
| Government Transfer Fee | 3% of purchase price | Buyer (typically) |
| Agent Commission | 2-3% of purchase price | Buyer (resale) / Developer (new builds) |
| Title Deed Issuance | OMR 10-100 | Buyer |
| Legal Due Diligence | OMR 200-400 or 0.25-0.5% | Buyer |
| VAT on Property | Exempt (5% on some services) | Service recipient |
| Municipal Tax on Rent | 3% of gross rental income | Landlord |
| Service Charges | OMR 0.40-1.50 per m² annually | Property owner |
What is the government transfer fee percentage and who pays it?
The government transfer fee in Oman is exactly 3% of the total purchase price for all residential property transactions.
This fee applies universally whether you're buying an apartment in Muscat, a villa in Al Mouj, or a townhouse in Muscat Hills. The 3% rate remains constant regardless of property value, buyer nationality, or transaction type.
Typically, the buyer pays this transfer fee, though some purchase contracts allow for negotiation between buyer and seller. In practice, most real estate transactions in Oman follow the standard arrangement where the buyer covers this cost during the property registration process.
The transfer fee must be paid directly to the Ministry of Housing and Urban Planning as part of the official property registration. Payment is usually made through certified bank drafts or electronic transfers to government accounts.
As of September 2025, this 3% transfer fee represents one of the most significant upfront costs when purchasing property in Oman's residential market.
What additional registration and documentation fees should I expect?
Beyond the main transfer fee, several mandatory registration and documentation costs apply to Oman property purchases.
Title deed issuance fees range from OMR 10 to OMR 100, depending on your property's value and type. Luxury properties and commercial-residential developments typically incur higher title deed costs within this range.
Cadastral mapping fees cost between OMR 20 and OMR 50 for official property surveys and boundary mapping services. These surveys are mandatory for all property transfers to ensure accurate legal descriptions in ownership documents.
Notary and document attestation services charge approximately OMR 5 to OMR 20 per document set. Multiple documents require attestation during property transfers, including purchase agreements, identification papers, and financial declarations.
These additional fees typically total OMR 35 to OMR 170 per transaction, representing a relatively small portion of total purchase costs but essential for legal property ownership in Oman.
How do fees differ for foreign buyers versus GCC citizens?
Significant fee and eligibility differences exist between buyer categories in Oman's property market, with the most restrictions applying to non-GCC foreign nationals.
| Buyer Category | Purchase Areas | Additional Fees |
|---|---|---|
| Omani Citizens | Anywhere in Oman | Standard fees only |
| GCC Citizens | Most areas (some restrictions) | Standard fees + municipal permissions |
| Non-GCC Foreigners | ITC/Freehold zones only | Standard fees + OMR 50-100 approval + OMR 50-150 compliance |
| Expatriate Residents | ITC/Freehold zones only | Same as non-GCC foreigners |
| Corporate Buyers | Varies by company structure | Additional corporate registration fees |
Foreign buyers face the most complex process, requiring Ministry of Housing approval costing OMR 50 to OMR 100, plus additional compliance documentation fees of OMR 50 to OMR 150.
What are typical real estate agent commissions in Oman?
Real estate agent commissions in Oman typically range from 2% to 3% of the total purchase price.
Minimum commission floors usually start at OMR 500 to OMR 1,000 for smaller property transactions, ensuring agents receive reasonable compensation even on lower-value deals. Maximum commissions are generally negotiable but rarely exceed 3.5% in competitive market conditions.
For resale properties, buyers typically pay agent commissions directly. However, in new build and off-plan developments, developers usually cover broker fees as part of their marketing costs, meaning buyers face no direct commission charges.
Commission payment timing varies: some agents require payment at contract signing, while others collect fees at property transfer completion. Always clarify commission payment schedules before engaging real estate services in Oman.
It's something we develop in our Oman property pack.
What legal and translation costs should I budget for?
Legal due diligence costs in Oman range from OMR 200 to OMR 400 for fixed-fee arrangements, or 0.25% to 0.5% of property value for percentage-based legal services.
Comprehensive legal review includes contract analysis, title verification, encumbrance checks, zoning compliance verification, and developer financial health assessments. These services are particularly crucial for foreign buyers navigating Oman's property regulations.
Document translation fees cost OMR 15 to OMR 50 per document for certified Arabic-English translations. Essential documents requiring translation include purchase agreements, bank statements, income certificates, and identification documents.
From initial offer through final transfer, total legal and translation costs typically range from OMR 250 to OMR 500 for straightforward transactions. Complex purchases involving multiple properties, corporate structures, or financing complications may exceed this range.
Engaging qualified legal professionals familiar with Oman property law is essential for protecting your investment and ensuring regulatory compliance throughout the purchase process.
Don't lose money on your property in Oman
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What mortgage and financing costs apply in Oman?
Omani banks charge arrangement fees of 0.5% to 1% of the total loan amount for mortgage processing and approval services.
Property valuation fees range from OMR 50 to OMR 150, depending on property size, location, and complexity. Banks require independent valuations to confirm property values match loan amounts before mortgage approval.
Mortgage registration at the Land Registry costs approximately OMR 40 to OMR 100, creating legal charges against property titles to secure bank lending positions. This registration is mandatory for all mortgage-financed property purchases in Oman.
Insurance requirements include life insurance (typically OMR 100 to OMR 300 annually) and property insurance (minimum OMR 100 to OMR 200 annually). Banks mandate continuous insurance coverage throughout mortgage terms to protect their lending interests.
Early repayment penalties usually range from 1% to 2% of outstanding mortgage balances. However, penalty structures vary significantly between Omani banks, so confirm specific terms before mortgage commitment.
How does VAT apply to property transactions in Oman?
Oman's standard VAT rate is 5%, but most residential property sales are completely exempt from VAT charges.
Residential property purchases, whether new builds or resale properties, do not incur VAT on the purchase price itself. This exemption applies to apartments, villas, townhouses, and other residential property types throughout Oman.
However, VAT applies to certain property-related services including real estate agent commissions, legal services, property management fees, and some construction services. Service providers must collect and remit VAT to Omani tax authorities on these transactions.
Property rental income is also VAT-exempt, meaning landlords don't charge tenants VAT on monthly rent payments. This exemption makes Oman's rental market more affordable compared to countries where VAT applies to rental income.
As of September 2025, VAT exemptions on residential property continue to support Oman's property market by reducing total acquisition costs for buyers and investors.
What fees apply to new build and off-plan purchases?
New build and off-plan property purchases in Oman involve several developer-specific fees beyond standard government charges.
Developer and escrow registration fees typically range from OMR 250 to OMR 1,000, covering escrow account setup, construction monitoring, and title transfer processing. These fees ensure buyer protection during construction phases and proper fund management.
Utility connection fees cost between OMR 50 and OMR 300 for electricity, water, gas, and telecommunications services. Connection costs vary based on property size, location, and infrastructure requirements in different Omani developments.
Handover and processing fees of approximately OMR 100 to OMR 400 apply when developers transfer completed properties to buyers. These fees cover final inspections, key handovers, warranty documentation, and property maintenance manual provision.
Some premium developments charge additional community setup fees, covering initial landscaping, recreational facility establishment, and community management system implementation. These costs are typically disclosed in sales contracts.
It's something we develop in our Oman property pack.
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.
Are there annual property taxes or municipal fees?
Oman does not impose annual property taxes on residential property ownership, making it attractive for long-term property investment compared to many other countries.
However, municipal fees apply to rental properties at 3% of declared annual rental income. Property owners must register rental agreements with local municipalities and pay this tax quarterly or annually based on municipal requirements.
The municipal rental tax is calculated on gross rental income without deductions for property management costs, maintenance expenses, or vacancy periods. This tax applies whether you rent to individuals, families, or corporate tenants in Oman.
For owner-occupied properties, no annual taxes apply beyond standard utility bills and community service charges. This tax structure encourages property ownership and reduces long-term holding costs for residential investors.
Municipal tax rates have remained stable at 3% of rental income since 2020, providing predictable tax planning for Omani property investors and landlords.
What ongoing service charges and community fees should I expect?
Residential communities in Oman charge annual service fees ranging from OMR 0.40 to OMR 1.50 per square meter, depending on community amenities and service levels.
Service charges typically cover community security, landscaping maintenance, common area cleaning, swimming pool maintenance, gymnasium upkeep, and general facility management. Premium developments with extensive amenities charge toward the higher end of this range.
Sinking fund contributions range from OMR 0.10 to OMR 0.40 per square meter annually, building reserves for future major repairs and community infrastructure upgrades. These funds ensure long-term community maintenance without special assessments on property owners.
For a typical 150-square-meter apartment in a well-managed Omani community, expect total annual service and sinking fund charges of approximately OMR 75 to OMR 285. Luxury developments may exceed these ranges due to premium service standards.
Community management companies provide detailed annual budgets showing exactly how service charges are allocated across different maintenance and operational categories, ensuring transparency in fee structures.
What taxes and fees apply to rental income?
Landlords in Oman pay 3% municipal tax on gross rental income, representing the primary tax obligation for rental property owners.
Lease registration fees cost approximately OMR 5 to OMR 20 per rental contract, paid by landlords when registering tenancy agreements with local municipalities. Registration is mandatory for all residential rental arrangements in Oman.
The municipal rental tax is paid directly by property owners to municipal authorities, not withheld by tenants. Tax collection schedules vary by municipality, with some requiring quarterly payments while others accept annual payments.
No additional income taxes apply to rental income for individual property owners in Oman, as the country maintains a tax-free personal income system. This makes rental property investment particularly attractive compared to countries with complex rental income tax structures.
Landlords must maintain accurate rental income records and property expense documentation for municipal tax purposes and potential future regulatory requirements in Oman's evolving tax environment.
What costs apply when selling property in Oman?
Property sales in Oman do not incur capital gains taxes, making the country attractive for property investment and resale activities.
Transfer fees of 3% apply to the new buyer's purchase, but sellers typically don't pay government transfer costs. However, sellers often pay real estate agent commissions of 2% to 3% of sale price if using professional marketing services.
Mortgage release fees cost approximately OMR 30 to OMR 60 for loan discharge and property title clearing when sellers have existing mortgages. Banks process mortgage releases within 10 to 15 business days after final loan payments.
Developer No-Objection Certificates (NOC) cost OMR 100 to OMR 250 for resales in ITC developments and integrated communities. These certificates confirm no outstanding community fees or development obligations before property transfers.
It's something we develop in our Oman property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding all property-related costs in Oman is essential for accurate investment planning and avoiding unexpected expenses during your purchase process.
The combination of no capital gains tax, VAT-exempt residential purchases, and competitive transfer fees makes Oman an attractive property investment destination for both regional and international buyers.
Sources
- Ministry of Housing and Urban Planning - Oman
- Central Bank of Oman - Mortgage Guidelines
- Tax Authority - Sultanate of Oman
- Ministry of Commerce and Industry - Oman
- Oman Legal Network - Property Law Guide
- Real Estate Investment Association Oman
- Muscat Municipality - Property Registration
- Oman Chamber of Commerce and Industry