Oman Property Tax Guide 2026
Oman does not impose annual property tax, stamp duty, or council tax. The main property-related costs are a 3% transfer fee on purchase/sale and a 3% municipal tax on rental income (paid by the tenant). No CGT on property for individuals.
No Annual Property Tax
Oman does not levy an annual property tax or land tax. Property owners do not pay any recurring tax based on the value of their real estate. There is no equivalent of council tax (UK), taxe foncière (France), or Grundsteuer (Germany). The only recurring property-related charge is the municipal tax on rented properties (see below).
Property Transfer Fee: 3%
When real estate is transferred (sold), a 3% fee on the property value is payable to the Ministry of Housing and Urban Planning. This fee is typically split 50/50 between buyer and seller (1.5% each), though the division can be negotiated in the sale contract. The fee is based on the higher of the sale price or the ministry's assessed value.
Example: An apartment sold for OMR 100,000. Total transfer fee: OMR 3,000 (buyer pays OMR 1,500, seller pays OMR 1,500). This is the only tax/fee on property transfer — no capital gains tax for individuals, no additional SDLT-type surcharge for second homes or foreign buyers.
Municipal Tax: 3% of Annual Rent
A municipal tax of 3% of the annual rental value is imposed on all leased residential and commercial properties in Oman. The tax is the legal responsibility of the tenant, not the landlord. In practice, landlords often collect it as part of the rent and remit it to the municipality. The tax applies to the annual rent specified in the tenancy contract.
Example: A commercial office rented at OMR 24,000 per year (OMR 2,000/month). Municipal tax: OMR 720 (3% × OMR 24,000). This is the tenant's liability but is often bundled into the monthly rent.
No CGT on Property for Individuals
As covered in the Capital Gains guide, individuals pay 0% capital gains tax on property sales. A Muscat resident who buys a villa for OMR 150,000 and sells it five years later for OMR 250,000 pays no capital gains tax on the OMR 100,000 gain. The only cost on sale is the seller's share of the 3% transfer fee (typically 1.5%).
No Inheritance Tax on Property
Property inherited in Oman is not subject to inheritance tax, estate tax, or any property transfer tax at death. The only cost is a nominal registration fee for transferring the title to heirs (typically under OMR 100). Sharia succession rules apply for distribution among heirs (see Inheritance & Gift guide).