The price on the brochure is not the price of ownership. Here is every cost we build into an investment case, with the source and how confident we are in each figure.
At purchase
| Cost | Typical amount | Notes |
|---|---|---|
| Registration and transfer fee | Around 3% for foreign buyers; 1% for Omani individuals and companies since January 2025 | Paid to the Ministry of Housing and Urban Planning. Confirm the rate for your transaction before completion. |
| Developer administration fees | Varies by developer | Common on off-plan purchases in ITCs. Ask for a written list at reservation. |
| Legal review | Varies; agree a fixed fee | We recommend an independent lawyer, not one appointed by the developer. |
| Mortgage registration | Capped at 0.5% | From the January 2025 fee changes. Only applies if you borrow. |
| Furnishing | Your choice | Needed for most holiday-let strategies. |
| VAT | Residential sales and rents are generally exempt; 5% applies to many services | Agency, legal and management fees can carry VAT. Confirm the treatment of your transaction. |
While you own
- Service charges. Master-planned communities charge owners per square metre for shared areas and services. Ask for three years of owners’ association budgets and the reserve fund balance.
- Utilities and maintenance. Budget for them even when the property is let: void periods, air-conditioning servicing and wear between tenants.
- Letting and management. Long-let management and short-stay operators charge very different fees. Our yield calculator lets you model both.
When you let
- Lease registration fee. In Muscat, lease contracts must be registered with the municipality. The fee was reduced from 5% to 3% of the rent value in 2021, and the landlord or their agent is responsible for registration.
Taxes
- No annual property tax and no capital gains tax for individuals today.
- Personal income tax from 1 January 2028. Royal Decree 56/2025 introduces a 5% tax on net taxable income above OMR 42,000 a year. How it applies to rental income and to non-resident owners depends on the executive regulations. Take advice before 2028 if your Oman income could approach the threshold.
- Your home country. A UK resident owning property in Oman may owe UK tax on the rent and on any gain. Take advice from a UK tax adviser; Oman-side rules do not settle this.
A worked example
For a OMR 150,000 apartment bought by a UK investor without a mortgage, a first estimate is:
| Item | OMR |
|---|---|
| Purchase price | 150,000 |
| Registration fee at 3% | 4,500 |
| Legal review (assumed) | 1,500 |
| Furnishing (assumed) | 8,000 |
| Cash needed at completion | 164,000 |
Use the cost calculator to change every assumption.
General information, not tax or legal advice. Fee rates change; we show the date each one was last checked.