1. The registration (transfer) fee
The biggest one-off cost is the property transfer and registration fee paid to the Ministry of Housing and Urban Planning (MoHUP) when the title (Mulkiya) moves to your name. As of early 2026 it is reported at 3% of the property value for foreign buyers and 1% for Omani citizens (reduced from 2% in January 2025), with a lower rate reported for some Islamic-bank financed transactions.
The fee is calculated on the higher of the agreed price and the official valuation, so a 'cheap' paper price doesn't reduce it. Always confirm the current rate with MoHUP before you sign, because fees are set by ministerial decision and do change.
2. Agency commission
Brokers in Oman commonly charge around 2–3% of the price. Who pays depends on the deal: sometimes the seller, sometimes the buyer, sometimes both sides. Agree it in writing before viewings start, and ask whether the figure includes VAT. Buying off-plan directly from a developer usually means no buyer commission.
3. Legal, valuation and paperwork
- Lawyer / conveyancing: roughly OMR 500–1,500 to check the title, the sale agreement and any developer restrictions.
- Valuation: a few hundred rial. Required if you take a mortgage, and worth doing anyway on resale.
- Clearance certificates and admin: small charges, typically OMR 50–200, for documents such as utility and service-charge clearances.
- Developer NOC / transfer fee (resale): in many ITC communities the developer must issue a no-objection certificate before a resale, and may charge for it.
4. VAT
Oman's VAT is 5%. Resale of residential property is generally exempt, but some new-build and commercial transactions can attract it. Ask the developer whether a quoted price includes VAT, and get it written into the contract.
5. Mortgage costs
- Down payment: banks lend only part of the value, so you need cash for the rest plus all the fees above.
- Processing / arrangement fee: charged by the bank on the loan amount. Compare offers.
- Mandatory insurance: life cover for the borrower and property insurance are normally required for the full term.
- Early settlement: check the fee for paying the loan off early, because it matters when you sell. See our financing guide.
6. Yearly running costs
- Service charges: in ITC communities, reported at roughly OMR 4–12 per m² per year for common areas, security and facilities. On a 150 m² apartment that is OMR 600–1,800 a year, every year. Ask for the last two years of charges before buying.
- Maintenance: AC servicing, plumbing and painting add up. A common rule of thumb is to budget 0.5–1% of the property value per year.
- Utilities and deposits: electricity and water accounts need a deposit when you connect them in your name.
- No annual property tax: Oman has no yearly property tax, no capital-gains tax for individuals and no inheritance tax, which is a real advantage.
7. If you rent it out
- Municipal tax on rent: landlords pay 3% of gross rental income, with no deductions.
- Management fees if an agent manages the tenant for you, and vacancy: a month or two empty between tenants is normal.
- Makan's free owner dashboard tracks rent, expenses and reminders so you see your real net yield.
8. Off-plan extras
- Delays mean paying rent longer than planned. Check the handover clause and any compensation.
- Resale before handover is often restricted until a share of the price is paid, and may carry a developer fee.
- Furnishing and fit-out for an empty new unit: kitchens appliances, curtains, lighting, furniture.
Worked example: OMR 150,000 apartment in an ITC
A foreign buyer, paying cash, 150 m² apartment, buyer pays a 2% commission. Figures are illustrative.
| Registration fee (3%) | OMR 4,500 |
| Agency commission (2%) | OMR 3,000 |
| Lawyer | OMR 1,000 |
| Clearances & admin | OMR 150 |
| Total on top of the price | OMR 8,650 (≈5.8%) |
…and every year after
Before you make an offer, ask Makan's AI assistant (bottom corner of every page) for an indicative price range from similar listings, and read what makes a property easy to resell.
| Service charge (150 m² × OMR 8) | OMR 1,200 |
| Maintenance (≈0.5%) | OMR 750 |
| Yearly total (before utilities) | ≈ OMR 1,950 |
Frequently asked questions
- How much is the property registration fee in Oman?
- As of early 2026 it is reported at 3% of the property value for foreign buyers and 1% for Omani citizens, paid to the Ministry of Housing and Urban Planning. Confirm the current rate before signing.
- How much extra should I budget on top of the price?
- Plan for roughly 3–10% up front depending on whether you are Omani or foreign, pay a commission, or take a mortgage, plus yearly service charges and maintenance.
- Is there an annual property tax in Oman?
- No. Oman has no annual property tax and no capital-gains or inheritance tax for individuals. Landlords do pay a 3% municipal tax on gross rent.
- Who pays the agent's commission in Oman?
- It varies by deal: the seller, the buyer or both. It is commonly around 2–3%. Agree it in writing before viewings.
Keep reading
The fees above are general information, not legal or financial advice. Registration fees, bank charges and municipality rules in Oman change by official decision, so confirm the current amounts with the Ministry of Housing, your bank or a licensed lawyer before you sign.
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