Oman – Property Letting

How does the property letting process work in Oman?

Placing a property on the rental market in Oman is a well-defined process, underpinned by tenancy legislation that balances the interests of both parties. The journey from listing to occupancy begins with advertising — typically via online platforms such as Property Finder Oman or OpenSooq, or through a licensed letting agent — and moves through tenant screening, contract preparation, and compulsory lease registration with the local municipality.

Before any agreement is signed, landlords should confirm the prospective tenant’s residency status. For a lease to be registered, the tenant must hold valid residency rights and have the appropriate labour clearance papers in order. Alternatively, the tenant’s employer may enter the lease in its own corporate name, provided it is a company registered in Oman — businesses registered only in other GCC states do not meet this requirement.

For residential lettings, the lease agreement is typically drawn up on a standard single-page form supplied by the relevant municipality. The reverse side of this form reproduces the principal provisions of Royal Decree 6/89 in summary form, constituting the default terms of the tenancy. For commercial and industrial properties, the parties generally append an addendum containing additional clauses, though any such additions must remain consistent with the provisions of Royal Decree 6/89.

The standard residential tenancy runs for twelve months, though shorter or longer terms may be agreed in writing. Royal Decree 6/89 sets no statutory minimum duration, but any lease submitted for municipal registration must not extend beyond seven years. Unlike jurisdictions where informal or verbal agreements may hold some legal weight, Oman’s system is unambiguous: a written, registered contract is an absolute requirement — a lease that has not been registered has no standing before any government body in the country.

Tenancy agreements in Oman routinely contain clauses specifying the lease duration and renewal provisions, the notice period required by either party, and the rental payment terms — including the monthly sum, the due date, and the preferred payment method, which is commonly bank transfer or post-dated cheques. Supplementary clauses covering matters such as utility responsibility, pet ownership, and structural alterations may be included by mutual consent, provided they do not conflict with the underlying tenancy legislation.

A significant development under Royal Decree 12/2025 is that registered lease agreements now carry the force of a writ of execution. This means a tenancy contract is no longer merely a private agreement between two parties — it has the same legal standing as a court judgment. This elevates the importance of lease registration for any landlord who wishes to enforce their contractual rights swiftly and effectively.

What types of rental arrangements are available in Oman — long-term, short-term, and holiday lets?

Oman’s rental landscape splits into two principal categories: long-term residential or commercial lettings, which fall under Royal Decree 6/89, and short-term or holiday lettings, which are governed by tourism legislation. These two regimes carry distinct licensing obligations and tax consequences, making it critical to determine which applies to your planned arrangement before welcoming any tenant.

Short-term rentals — whether marketed as holiday homes or temporary lodgings — have grown substantially in popularity across Oman. Destinations such as Muscat, Salalah, and Nizwa have all experienced a marked rise in demand from visitors seeking more characterful accommodation, and platforms including Airbnb and Booking.com have become the primary channels through which these properties are listed.

The Ministry of Heritage and Tourism (MHT) requires hosts to secure a tourism permit before advertising any property on these platforms. Furthermore, from January 2025 onwards, all hosts must prominently display their MHT licence number on every online listing, in accordance with ministerial circular 2023/32/6421. Operators who fail to obtain the necessary permits face financial penalties and potential enforcement action, particularly where properties are listed on major international platforms.

These licensing obligations apply uniformly regardless of property type or the owner’s residency status. The system is licence-driven — meaning that apartments, townhouses, and villas are all treated identically and each requires Ministry approval. As of the first half of 2026, Oman imposes no minimum stay requirements or annual nights caps; compliance is assessed by reference to whether the operator holds valid licensing.

Landlords who own property within an Integrated Tourism Complex (ITC) should be aware that many such developments impose their own community rules that restrict short-term platform letting unless the homeowners’ association (HOA) has given its approval. Foreign owners must therefore examine their development’s governing documents carefully before listing on any short-term rental platform, in addition to completing the MHT tourism permit process.

VAT at 5% applies to short-term rental accommodation, including properties operated as tourist lodgings. Long-term residential rentals lasting three months or more are exempt from VAT where the lease has been properly registered with the authorities. The tax treatment of each model is therefore a meaningful variable when deciding which letting strategy to pursue.

What rental income can landlords expect in Oman, and how are rates set?

Rental prices in Oman are primarily driven by market forces rather than government-mandated caps, though the law does contain certain tenant protections against disproportionate rent increases. Achievable rents differ considerably depending on location, property type, size, and condition, with Muscat representing the top end of the market and cities like Salalah operating under quite different supply and demand dynamics.

When a new residential tenancy begins, the tenant is entitled to security of tenure during an initial period within which the rent cannot be raised unless both parties expressly agree to an increase. Once that period has elapsed, there is no statutory ceiling limiting how much rent can climb on an annual basis; in practice, however, most landlords take a measured approach, recognising that pushing rents too aggressively risks losing tenants to competing properties.

Restrictions on rent increases have been a central feature of Omani tenancy legislation since its inception in 1989, and were reinforced by an amendment in 2008. Under the framework as it currently stands, landlords are prohibited from raising rent during the first three years of a tenancy, and any subsequent annual increases are capped at 7 percent. It is worth noting that commentary and legal sources vary on whether these precise figures remain unaltered following more recent amendments — landlords should always confirm the current rules directly with Muscat Municipality or a qualified local legal adviser.

Within designated tourism complexes such as Al Mouj Muscat and Muscat Hills, rental yields commonly fall in the 6–8% range. For short-term holiday lets, the average nightly rate for an Airbnb listing in Muscat in 2026 is approximately 27 OMR (around USD 70), with premium coastal locations achieving rates 40–60% above that benchmark. No official rent pressure zones or government-indexed rent bands exist for residential property; the Ministry of Housing and Urban Planning is the principal authority to consult for up-to-date market information and any regulatory changes relating to rent-setting.

Do landlords need to provide a furnished or unfurnished property in Oman?

Omani law imposes no obligation on landlords to furnish a property before letting it. The choice between a furnished and an unfurnished let is purely commercial, and both models are well represented in the market. The decision will typically influence the level of rent that can be achieved, the type of tenant attracted, and the likely length of the tenancy.

Unfurnished properties are handed over to tenants without furniture, white goods, or other fittings — the tenant assumes full responsibility for equipping the space to their own requirements. Leases for unfurnished properties tend to run for longer periods and are particularly well suited to tenants making a medium- or long-term commitment to a location.

Furnished properties, by contrast, come equipped with furniture and appliances and sometimes include kitchenware and bed linen. This arrangement appeals to tenants on short-term assignments or those relocating quickly, and it typically supports a higher monthly rental figure by virtue of the included contents. The furnished or unfurnished classification has no bearing on the formal legal status of a lease under the tenancy law, although furnishing arrangements may have relevance to the conditions attached to a tourism permit for short-term holiday lets.

Where a furnished property is being let, landlords are well advised to prepare a detailed inventory and attach it as a signed annex to the tenancy agreement. While this is not a statutory requirement, it provides essential protection for both parties when the tenancy ends and any deposit deductions are being considered. The standard municipality lease form makes no provision for an inventory, so this must be prepared as a separate document and signed by both landlord and tenant at the outset.

Do you need a licence or registration to let a property in Oman?

Lease registration is compulsory across all categories of letting in Oman — residential, commercial, and industrial. There is no individual “landlord licence” of the kind found in certain other countries, but failing to register the tenancy contract with the relevant municipality exposes any landlord to serious legal and financial consequences.

The tenancy legislation requires that the relationship between landlord and tenant be formalised in a written lease that is registered with the appropriate government body. By default, the obligation to register and pay the associated fees rests with the landlord. However, the parties may agree between themselves that the tenant will bear this responsibility, and the tenant also retains an independent right to register the lease if the landlord fails to do so.

A lease that is not registered with the municipality — or whose registration has lapsed, or whose applicable tax has not been paid within one month of the agreement being signed or expiring — is treated as legally void in all dealings with government authorities in Oman.

For short-term and holiday lets, further and distinct obligations apply: hosts must obtain a tourism permit before advertising any property, and since January 2025 are required to include their MHT licence number visibly on all online listings. Applications for tourism permits are directed to the Ministry of Heritage and Tourism. Non-resident foreign landlords are subject to precisely the same registration and licensing requirements as resident owners — there is no exemption based on residency status.

How do you register a tenancy in Oman?

Registration with the relevant municipality must be completed before the tenant moves in. The steps below relate to long-term residential and commercial tenancies. Properties let on a short-term tourism basis also require a separate permit from the Ministry of Heritage and Tourism. Fees and procedures are subject to change, so always verify the current requirements with your local municipality or the Muscat Municipality portal.

1. Prepare the tenancy contract. Complete the standard one-page tenancy agreement form issued by the relevant municipality, ensuring all parties’ details, the property description, rent amount, and lease term are correctly recorded. For commercial leases, attach any agreed addendum.
2. Verify tenant eligibility. Confirm that the tenant holds valid residency rights and labour clearance papers, or that the lease is being taken in the name of a qualifying Omani-registered employer.
3. Assemble the supporting documents. Both parties will need copies of their civil ID or passport. The landlord must also provide the property title deed or equivalent proof of ownership, along with any power of attorney documents if a representative is acting on the landlord’s behalf.
4. Submit to the municipality. Deliver the signed tenancy contract, supporting documents, and registration fee payment to the relevant municipal office. In Muscat, submissions can be made in person at the municipality’s offices or through the municipal online portal.
5. Pay the registration tax. A fixed tax of approximately 3% of the total annual rent is payable by the landlord upon registration. Failure to register or to pay this tax within one month of the agreement being signed or expiring renders the lease legally void before all government authorities in Oman, and also triggers a penalty fine equal to three times the fixed tax. Confirm the current applicable rate with your municipality, as amounts may differ between governorates.
6. Receive the approved contract. Once the municipality has processed the submission, a stamped and approved copy of the tenancy agreement is returned to the parties. This approved document enables utility accounts — including electricity, water, telephone, and sanitary drainage — to be transferred into the tenant’s name.
7. Renew annually where applicable. For leases extending beyond one year, the registration must be renewed and the tax paid on each anniversary in order to preserve the legal validity of the agreement.

What are the rules around deposits in Oman?

Security deposits are a routine element of rental agreements in Oman, but the approach differs markedly from countries such as the UK or Ireland, which operate government-backed tenancy deposit protection schemes requiring landlords to lodge funds with an independent third party. No equivalent centralised scheme exists in Oman — deposits are retained by the landlord and regulated by the lease agreement itself and the general principles of the tenancy law.

Taking a security deposit is standard practice among Omani landlords. It provides the landlord with financial recourse in the event of damage beyond normal wear and tear or unpaid rent at the end of the tenancy. The deposit amount is negotiated between the parties and recorded in the lease; it most commonly equates to one or two months’ rent, though no statutory ceiling restricts the figure agreed upon.

When the tenancy concludes, the tenant is obligated to return the property in good condition, having remedied any damage caused during the period of occupation. Before returning the deposit, the landlord should carry out a thorough inspection of the property, cross-referenced against any inventory that was signed at the beginning of the tenancy. Any disputes over proposed deductions may now be referred to the dedicated Rental Disputes Resolution Committee created under Royal Decree 12/2025. Both landlords and tenants are strongly encouraged to document the property’s condition with photographs and a signed schedule at both the start and the end of the letting, as this evidence will be important in any deposit-related proceedings. Consult the relevant municipality for any applicable rules or limits on deposit amounts.

Who is responsible for maintenance and repairs in Oman?

As a general rule under Oman’s tenancy framework, the landlord bears responsibility for all significant repair and maintenance works that become necessary over the course of the tenancy, while the tenant is accountable for the routine upkeep of the property in day-to-day use. This division of responsibility is reflected in the standard municipality tenancy form and the underlying legislation.

More specifically, the landlord is required to carry out any maintenance, overhaul, or restoration works needed to keep the leased premises in a condition appropriate to the purpose for which they are being rented. On expiry of the tenancy, the tenant must return the property having repaired any damage attributable to their occupation, while the landlord assumes responsibility for any maintenance, overhaul, and restoration necessary to bring the property up to the standard expected by future occupants.

This structure is broadly comparable to civil law jurisdictions such as France or Germany, where structural and significant repairs remain with the landlord while minor day-to-day maintenance is the tenant’s concern. Unlike some common-law systems where the respective obligations of the parties can be extensively modified by contractual agreement, in Oman the parties must operate within the mandatory boundaries set by Royal Decree 6/89. If either party neglects their obligations, the other has the right to rescind the relevant provision. Maintenance and repair disputes can be referred to the Rental Disputes Resolution Committee established under Royal Decree 12/2025, which provides a quicker and more cost-effective resolution pathway than the traditional court system.

How are letting agents used in Oman, and what do they charge?

A substantial number of property owners in Oman engage letting agents to handle part or all of the letting process. Agents can provide assistance with advertising, tenant screening, lease negotiations, and ongoing management, and it is important to select a reputable operator who holds the appropriate regulatory licence. For landlords based overseas who are managing property remotely, a full management service — encompassing rent collection, maintenance coordination, and lease renewal — is generally the most practical solution.

Letting agent fees in Oman are not subject to statutory limits of the kind seen in some other rental markets. The standard finder’s fee for securing a tenant is typically equivalent to one month’s rent, which may be split between landlord and tenant or borne entirely by one party according to what is agreed. For ongoing property management services, fees generally fall in the range of approximately 5% to 10% of the monthly rent, though this varies between service providers. The figures cited are indicative as of 2025 — readers should obtain current quotations directly from agents and check whether any regulated fee structures apply with the Ministry of Housing and Urban Planning or the relevant municipal authority.

Under Omani real estate brokerage regulations, all letting agents must hold a valid brokerage licence. Landlords are advised to verify the licensing status of any agent before entering into a service agreement with them. The Ministry of Housing and Urban Planning is responsible for overseeing real estate brokerage licensing and publishes guidance on the regulatory requirements applicable to agents working across the Sultanate.

What taxes apply to rental income in Oman?

For most individual landlords, Oman’s tax treatment of rental income is among the most favourable in the Gulf region. However, it is important to understand the distinctions between the municipal lease tax, VAT, and personal income tax — particularly in light of the significant changes expected from 2028 onwards.

Oman’s tax legislation draws a clear line between individual property owners and corporate landlords. Private individuals who let residential or commercial property generally fall outside the scope of personal income tax, as Oman does not currently levy income tax on natural persons. Where, however, rental operations are conducted through a business structure — such as a company, partnership, or professional entity — the rental income generated becomes subject to corporate income tax at the standard rate of 15%.

Individual landlords remain free from personal income tax on rental income until 2028, meaning the principal government charge for most private landlords as of 2025 is the municipal lease registration tax, which runs at approximately 3%, subject to local variation. Foreign property owners are not currently subject to a higher rental income tax rate than Omani residents, given that personal income tax has not yet taken effect for anyone — though this position will need to be reviewed once the personal income tax regime is introduced and its implementing provisions are published.

VAT at 5% applies to short-term rental accommodation, including tourist lodgings. Long-term residential rentals of three months or more are exempt from VAT where the lease has been registered with the authorities. A 3% municipal tax is levied on property rents, and where a property is classified as tourist accommodation, a 4% tourism tax may additionally apply — particularly where the property is situated within a tourist zone or operates as part of a franchise arrangement.

Expenses incurred in generating rental income are only deductible where the relevant rental agreement has been registered with the appropriate government authority. This further underscores the importance of proper lease registration. Given the complexity of Oman’s evolving tax landscape — and in particular the implications for non-resident landlords and those operating through corporate vehicles — readers are strongly encouraged to consult both the Oman Tax Authority and a qualified local tax adviser, and to review any obligations arising in their country of residence.

What are the rules around ending a tenancy or evicting a tenant in Oman?

Omani tenancy law affords tenants considerable protections, particularly with regard to security of tenure and the grounds on which a landlord may seek to bring a tenancy to an early close. These provisions are substantially more favourable to tenants than the frameworks found in many comparable jurisdictions, and they represent a material factor for landlords to weigh when making letting decisions.

A landlord is prohibited from requiring a tenant to vacate residential premises before four years have elapsed from the date the tenancy began. For properties let for commercial, occupational, or industrial purposes, the equivalent period is seven years. If the landlord chooses not to renew at the end of this period, at least three months’ written notice must be given to the tenant before the lease expiry date.

A tenancy agreement remains in force until the agreed expiry date, or until the parties mutually agree to bring it to an end. Where neither party serves the required notice, the lease is automatically renewed on identical terms at expiry. The tenant is required to give at least three months’ notice of their intention to vacate, or notice equal to half the original lease term where that term was shorter than three months. Failure to serve adequate notice results in automatic renewal on the same terms for a period matching the original tenancy.

The grounds on which a landlord may seek early eviction are narrow. A landlord may apply for eviction before the lease expiry if the tenant defaults on rent within fifteen days of the due date. That said, the eviction application will be dismissed if the tenant settles all outstanding financial obligations — including any legal costs incurred by the landlord — before the matter is determined. Further grounds include use of the property for a purpose inconsistent with the lease, or subletting to a third party without the landlord’s written consent.

A dedicated Rental Disputes Resolution Committee has been created under Royal Decree 12/2025 to adjudicate disputes between landlords and tenants. Because lease agreements now carry the status of enforceable titles, landlords can pursue recovery of unpaid rent without resorting to protracted court proceedings, and the committee provides a more streamlined forum for eviction matters. Committee decisions are final and binding, with no right of appeal available to tenants.

What should expat landlords know about managing property remotely in Oman?

Overseeing a rental property from another country is perfectly feasible in Oman, but it demands thorough legal and administrative groundwork. The two most important steps are establishing a local representative through a notarised power of attorney and partnering with a trustworthy property management company to handle operational matters.

A power of attorney — referred to locally as a “wakala” — authorises a chosen individual or company to sign tenancy agreements, complete municipality registration, collect rental payments, and oversee maintenance works in the landlord’s name. The power of attorney must be notarised, and where it is executed outside Oman, it will typically need to carry an apostille or be otherwise legalised before it can be used with Omani authorities. A local Omani lawyer should be consulted to confirm that the document meets current formal requirements.

Foreign owners with property in an Integrated Tourism Complex (ITC) — which is the primary route through which overseas buyers can hold real estate in Oman — should review their development’s community management rules before listing on any short-term rental platform. Many ITC communities impose restrictions on Airbnb-style lettings unless the homeowners’ association has granted its prior approval. Breaching these community rules can result in penalties from the development management company, independently of whether the required tourism permit has been obtained from the Ministry.

As matters stand, non-resident foreign landlords are not subject to a higher rate of rental income tax than resident owners, because personal income tax has not yet come into effect for any person in Oman. However, this position will require reassessment once the planned personal income tax regime is introduced and its implementing rules are released. Non-resident landlords should additionally review their tax position in their country of residence, as Omani rental income may give rise to a liability there. Oman has concluded double taxation treaties with a number of countries, which may influence the overall tax outcome — advice from a tax professional familiar with both jurisdictions is strongly recommended.

Regarding the repatriation of rental income, Oman does not currently restrict foreign investors from transferring rental proceeds out of the country, though all funds must move through the formal banking system. Landlords should retain comprehensive records of all registered lease agreements and rental income receipts, as these documents may be required to evidence the source of funds when making international bank transfers.

Frequently asked questions

Can a non-resident own and let property in Oman?

Foreign investors may only acquire property in government-designated zones — principally Integrated Tourism Complexes (ITCs). Once ownership has been established within an ITC, the property may be let on either a long-term or short-term basis, subject to the standard tenancy registration requirements and, where short-term letting is intended, a tourism permit from the Ministry of Heritage and Tourism. Non-resident owners must adhere to local regulations and obtain all necessary licences.

Do I need a local agent to let my property in Oman?

There is no statutory obligation to engage a letting agent, but for non-resident landlords it is a very sensible course of action. A local agent or property management company can take care of lease registration, tenant screening, rent collection, and maintenance oversight. Where the landlord is managing from abroad, a notarised power of attorney will also be required to authorise a local representative to execute documents on the landlord’s behalf.

How long does a standard tenancy agreement run in Oman?

The typical residential tenancy runs for twelve months, though shorter or longer terms can be agreed in writing. No lease submitted for municipal registration may extend beyond seven years. Where neither party gives at least three months’ notice before the expiry date, the agreement automatically renews on the same terms.

Can I increase the rent at the end of a lease term in Oman?

For new residential tenancies, the rent is fixed throughout the initial period and may not be increased unless both parties agree in writing. Under the tenancy legislation, landlords are barred from raising rent during the first three years of the lease, and any increases applied after that point may not exceed 7 percent per annum. Landlords should confirm the current position with a local legal adviser, as this aspect of the law has been amended on previous occasions.

What happens if I don’t register my tenancy agreement with the municipality?

Where a landlord fails to register the lease with the municipality, or neglects to pay the applicable tax within one month of the agreement being signed or expiring, the agreement is treated as legally void in all dealings with government authorities in Oman. In addition to this loss of legal status, landlords who fail to register or to meet their tax obligations on time face a financial penalty equal to three times the fixed tax due.

Do I need to pay VAT on rental income in Oman?

VAT at 5% is charged on short-term rental accommodation, including properties operated as tourist lodgings. Long-term residential rentals lasting three months or more are exempt from VAT where the lease has been properly registered with the authorities. Residential property transactions remain exempt from the 5% VAT that was introduced in 2021. Landlords — particularly those running short-term tourist accommodation — should confirm their specific VAT position with the Oman Tax Authority or a qualified tax adviser.

Can a landlord evict a tenant at any time in Oman?

No. Oman’s tenancy legislation gives tenants strong security of tenure, and landlords must follow formal legal procedures before any eviction can take place. For residential properties, a landlord may not compel a tenant to leave before four years have passed from the tenancy start date, and must provide at least three months’ written notice if they intend not to renew at that point. Early eviction is only available on specific grounds, such as persistent non-payment of rent or a material breach of the lease terms.

What is the new Rental Disputes Resolution Committee and how does it affect landlords?

Royal Decree 12/2025 represents a landmark reform of landlord-tenant relations in the Sultanate. Article 2 of the decree establishes a dedicated Rental Disputes Resolution Committee in each governorate, with the task of resolving disputes between landlords and tenants and effectively taking over functions previously handled by the courts. Because registered lease agreements now carry the force of an enforceable title, landlords can pursue recovery of unpaid rent without being drawn into lengthy litigation, and the committee provides a more efficient forum for eviction proceedings. Its decisions are final and binding, with no appeal mechanism available to tenants. Disputes arising from leases entered into after 7 July 2025 come within the committee’s jurisdiction.