Oman Rental Income Guide 2026

Individual Landlords — 0% Tax on Rental Income

Individuals who own and rent out property in Oman pay no income tax on their rental income. This applies to both Omani nationals and expatriate residents. A landlord earning OMR 60,000 per year in rental income from a portfolio of Muscat apartments pays OMR 0 in income tax. The rental income is not subject to any progressive or flat tax regime.

Example: An individual owns three residential villas in Al Mouj, Muscat. Total annual rent: OMR 36,000. No income tax is payable on this rental income. The only charge is the 3% municipal tax (OMR 1,080) which is the tenant's legal responsibility.

Corporate Landlords — CIT 15%

Companies that own and lease property must include net rental income in their taxable profits and pay CIT at 15% (or 0% if SME exempt). Deductible expenses include property management fees, maintenance, depreciation of the building (straight-line), insurance, and municipal taxes paid (if the corporate landlord pays the municipal tax on behalf of the tenant).

Example: An Omani LLC owns a commercial building generating OMR 200,000 annual rent. Expenses: OMR 60,000 (management, maintenance, insurance, depreciation). Net rental income: OMR 140,000. CIT at 15%: OMR 21,000. If the company is Omani-owned and has total revenue below OMR 100,000 (e.g. a small property holding company), the 0% SME exemption would apply.

Municipal Tax: 3% Paid by Tenant

Oman imposes a municipal tax of 3% on the annual rental value of all leased properties. The tax is legally the responsibility of the tenant, though it may be paid by the landlord as a courtesy and factored into the rent. The tax is typically paid quarterly or annually to the Muscat Municipality or relevant regional municipality.

Rate breakdown: 3% of annual rent for residential and commercial properties. No municipal tax on undeveloped land or owner-occupied properties.

No Withholding on Rent

Rental payments made to landlords (whether resident or non-resident) are not subject to withholding tax in Oman. Non-resident individual landlords receiving rental income from Omani property pay 0% on that rental income. Non-resident corporate landlords would technically be subject to CIT on Omani-source rental income but enforcement typically requires a tax registration.

Rental Yields in Oman

Typical gross rental yields in Oman vary by location: Muscat apartments 6–8%, Muscat villas 4–6%, Salalah and Sohar apartments 7–10%, Duqm commercial property 8–12%. With zero income tax for individuals, net yields are very competitive globally.