Property fees and taxes in Oman: the full cost of buying, owning and renting out

When you compare homes in Oman, the price is only the starting point. This guide lists every cost that comes with buying, owning and renting out a property, so you can compare deals on the full number.

When you buy

• Registration fee: about 3% of the property value, paid to the Ministry of Housing and Urban Planning when your title deed or usufruct is registered. It is the largest single fee. On off-plan purchases it is usually paid at handover or at registration of the title.
• Reservation deposit: part of the price, not an extra cost, but it is usually non-refundable if you walk away.
• Developer administration fees: a fixed fee for processing the sale and the transfer, which varies by developer.
• Legal fees: optional for a new unit bought from a reputable developer, strongly recommended for resales and complex structures.
• Mortgage costs: bank arrangement fees, a valuation and mortgage registration if you borrow.
• Power of attorney: if you buy remotely, the cost of notarising and legalising it.

Rule of thumb: total closing costs are around 5% to 8% of the price; nearer 5% to 6.5% for a cash purchase in an approved project and nearer 8% with financing and additional legal work.

While you own

• Service charges: paid annually to the community or owners' association, calculated per square metre. They cover security, landscaping, shared facilities and maintenance of common areas. In resort communities with beaches, marinas and golf courses they are higher; always ask for the current rate before you buy.
• Utilities: electricity, water, gas, internet and cooling where applicable.
• Insurance: building and contents insurance, typically OMR 120 to 400 a year.
• Maintenance: air-conditioning servicing and general upkeep, especially after the first years.
• No annual property tax on residential property you own.

When you rent it out

• Municipal fee on leases: residential leases are registered with the municipality, which charges a percentage of the annual rent (commonly 3% for residential), usually paid by the landlord or shared by agreement.
• Property management: if you use an agent, expect a percentage of the rent for long-term lets and more for holiday-home management.
• Licences: short-term holiday rental needs a tourism licence and may bring VAT obligations.
• Income tax from 2028: rental income becomes part of taxable income, but tax applies only to individuals whose total income exceeds OMR 42,000 a year, at 5% above that threshold, after deductible expenses.

When you sell

• No capital gains tax for individuals on the sale of a primary or secondary home, which remains exempt under the 2028 income tax law.
• Agent commission if a broker finds your buyer.
• Developer resale or no-objection fee in some communities, especially before handover.
• Transfer registration: the buyer normally pays the registration fee, but this can be negotiated.

VAT

Oman's VAT is 5%. Sales and rentals of residential property are generally exempt or zero-rated, while commercial property, holiday-home services and many professional fees attract 5%.

A worked example

For a OMR 150,000 apartment bought for cash in a tourism complex, a realistic budget is about OMR 4,500 in registration fees plus developer and legal fees, roughly OMR 7,500 to OMR 9,500 on top of the price in total, and then service charges each year based on the unit's size.

How R2LUX helps

We give every client a full cost sheet for the unit they choose before reservation, including the current service charge. Three current listings are below.