Hidden Costs of Owning Oman Property as a Foreign Resident

Oman Property Ownership for Foreigners

Before buying an Oman property, make sure you have learnt about the foreign ownership rules. 

According to Sultani Decree 12/2006, foreigners can buy a property if it’s included in the ITCs (Integrated Tourism Complexes). ITCs combine residential, commercial, and tourism projects. The best examples of ITCs are Al Mouj Muscat, Muscat Hills, Saraya Bandar Jissah, Salalah Beach, and Jebel Sifah, Aida by Dar Global. After the purchase, the buyer receives a full title (freehold) in ITCs and up to 99‑year usufruct rights outside ITCs. 

Those foreigners who buy undeveloped land in ITCs must build on it within 4 years; otherwise, the Ministry of Housing can take the land back. Since 2020, Oman has also allowed foreigners (who are at least 23 years old and have lived in the country for at least two years) to buy one apartment in approved multi-storey buildings. However, please keep in mind that expats can own only one unit, and no foreign buyer can own more than 40% of the building.

By investing at least OMR 200,000 in ITCs, you can receive a 10-year residency permit in Oman if you meet the eligibility criteria. You can learn more about the Oman property market here.

Upfront Costs Beyond Purchase Price

Oman property costs aren’t just about the price of real estate. Buyers should consider several additional fees that they need to pay in advance:

Oman Property Registration Fees and Stamp Duty

While buying a property, you need to pay a one-time registration fee of 3% of the property value to the Ministry of Housing to receive the title deed. For example, if the property costs OMR 100,000 (≈ $260,000), you will need to pay OMR 3,000 (≈ 7,800) in stamp duty.

From 2025, citizens pay only 1% in stamp duty, but foreigners still pay the full 3%. Small additional fees (OMR 2-10) may also apply.

Legal and Notary Fees

You may need to hire a lawyer who will review contracts, check ownership, and prepare the sale agreement. Legal fees are usually OMR 500-2,000 (≈ $1,300-5,200), and notary services may also add OMR 100-300 (≈ $260-780). Some developers require contracts to be in Arabic, so you may also need to pay some translation fees.

Developer Service Charges and Connection Fees

In ITCs, buyers often pay 1-2% of the property price for community facilities, security, and infrastructure. Keep in mind that you may also need to pay utility connection fees for water, electricity, and telecom.

Mortgage Processing Fees

If you decide to take a mortgage to buy a property, you may also obtain one in Oman. 

Expats can get mortgages from local banks, which usually finance up to 70% of the property value for 5-15 years at 5-6.5% interest. Locals, on the other hand, can receive up to 80-90% financing. 

Banks may charge application fees, valuation fees, and document costs totaling OMR 300-1,500 (≈ $780-3,900).

Ongoing and Hidden Property Costs to Expect

Here are several ongoing and hidden costs that you can expect:

Annual Property Maintenance Fees

In Muscat, apartment complexes and gated communities usually charge the following fees:

• Basic Apartment Complex: Service charge is OMR 20-35 (≈ $52-91) and includes cleaning, security, and basic maintenance.
• Mid-Range Development: Service charge is OMR 35-55 (≈ $91-143) and includes a pool, gym, landscaping, and 24/7 security.
• Luxury Gated Community: Service charge is OMR 55-80 (≈ $143-208) and includes premium amenities, concierge services, and high-level maintenance.
• ITC Developments: Service charge is OMR 40-80 (≈ $104-208) and includes comprehensive community services and full facilities management.
• Standalone Villas: Service charge is OMR 0-20 (≈ $0-52) and includes only basic community upkeep.

Homeowners’ Association (HOA) or Community Fees

In ITCs and strata-style developments, all homeowners must join a community association. These communities charge annual service fees, which are usually calculated per square metre, and often cost OMR 5-10 (≈ $13-26) per square metre per year. The fees cover maintenance of elevators, parking areas, and shared facilities. High-end communities like Jebel Sifah or Muscat Hills may charge more because they include premium amenities such as golf courses and private beaches.

Utility Fees

Please keep in mind budgeting for utilities such as electricity, water, gas, waste collection, internet, and television. Because the climate is hot for much of the year, air‑conditioning can be one of the biggest utility expenses. According to Numbeo, here are several important points:

• The basic utilities (including electricity, heating, cooling, water, and garbage) for an 85 square metre apartment are $99.65 per month.
• A standard monthly mobile phone plan that includes calls and 10 GB+ data costs $32.51.
• A broadband internet with unlimited data (60 Mbps or higher) costs $72.11 a month.

Property Insurance

Oman property insurance is just optional. However, we recommend it to you because it protects against fire, floods, and earthquakes. Basic property insurance coverage costs around OMR 100-300 (≈ $260-780) a year. Insurance for luxury villas can be OMR 500-900 (≈ $1,300-2,340). Remember that if you take a mortgage, banks may also require extra insurance, like mortgage or credit life insurance, which may add another OMR 100-500 (≈ 260-1,300) per year.

Transfer Fees

There are no huge property resale fees in Oman. Just keep in mind the standard 3% transfer fee.

Furnishing and Setting Up a Home

Furnishing a one-bedroom apartment typically costs OMR 2,500-4,000 (≈ $6,500-10,400), including furniture, appliances, and utility setup; expats may also face extra costs for temporary housing, shipping, or buying everything from scratch.

Taxes and Government Charges

Stamp Duty and Registration Fees

Oman doesn’t have any annual property tax. Instead, buyers pay a one-time 3% stamp duty on the purchase price to register the property and receive the title deed. In 2025, the government reduced this fee to 1% for Omani nationals and capped Islamic mortgage registration fees at 0.5%, but foreign buyers still pay the full 3%.

Municipal Charges and Service Taxes

Even though there is no property tax, tenants must pay a 3% municipal tax on rent. Some areas may also charge a small annual licence fee (about 0.1-0.5% of property value) for services like garbage collection and local infrastructure. These costs are often included in community service charges, but should always be confirmed before buying.

VAT

Oman applies a 5% VAT to most goods and services, but residential property sales are VAT-exempt. However, buyers should expect VAT on related expenses such as furniture, contractor work, and professional services. Commercial property may have different VAT rules, so we recommend that you have a consultation with experts.

You can learn more about the Oman tax system in our guide.

Financing & Mortgage-Related Costs

Before buying an Oman property, make sure you’ve also considered the financing and mortgage-related costs.

Down Payments and Loan-to-value Ratios

Foreign buyers usually need to pay 20-30% of the property price upfront as a down payment, since banks usually don’t finance more than 70% of the property value. To apply, buyers must provide proof of employment, salary certificates, and recent bank statements.

Interest Rates and Loan Terms

Most Omani banks offer mortgages with 5-6.5% interest rates and 5-15 years repayment period. Islamic home-financing options (like diminishing musharaka or ijara) use Sharia-compliant structures and currently benefit from reduced registration fees of 0.5%. 

Mortgage Processing and Valuation Fees

Banks also charge application and valuation fees that can be OMR 300-1,500 (≈ $780–$3,900). A licensed appraiser must value every property to confirm its market price. Sharia-compliant financing may require extra documentation.

Credit Life Insurance and Early Repayment Penalties

Most banks require credit life insurance, which typically costs OMR 100-500 (≈ $260–$1,300) a year. Additionally, paying off a mortgage early can cause penalties of 1-3% of the remaining loan balance.

As the process may seem complicated, we advise you to book a free consultation with our experts, who will help you compare interest rates or understand the eligibility requirements and prepare the application.

Resale and Exit Costs

If you consider reselling your property, keep in mind the following property resale fees in Oman:

Transfer and Registration Fees

Despite the fact that buyers pay the 3% stamp duty, sellers may still need to pay some administrative fees to release the title and complete the transfer. If the property was originally bought under a usufruct right, the seller may need to pay a service fee to upgrade the usufruct to full ownership before selling. Sellers should also plan for legal and notary fees to prepare the sale agreement.

Oman currently doesn’t charge capital gains tax on property sales, meaning profits from appreciation are tax-free in Oman. However, sellers may still need to pay taxes in their home country, so it’s best to check with a tax advisor.