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Oman Tax Guide

Middle EastLast verified September 2026Exempt system

Top income tax: 0 (5% from 2028)
Capital gains: 0%
Corporate: 15%
VAT / GST: 5%
Residency test: 183 days

96/100Personal Tax ScoreExtremely Tax Friendly

78/100Business Tax ScoreTax Friendly

Beyond taxLiving in Oman#9place to live

Zero Tax Low Rate

In short

Oman offers a calm, safe Gulf lifestyle with dramatic mountain and coastal scenery and, for now, no personal income tax.
No newcomer tax regime: the standard rates above apply to new residents.
Watch out: A 5% personal income tax on high earners starts in 2028, and summers are extremely hot.

Is Oman right for you? Take the intake Full tax detail

Verified September 2026 · 4 sources

Recent changes

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Best for

Zero personal tax
0% on personal income — among the simplest tax outcomes globally.
Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
Foreign income exempt
Exempt system — overseas income generally outside the local tax net.
No wealth tax
No annual tax on net worth or assets.
No inheritance tax
Estate and lifetime transfers not subject to inheritance tax.

Personal Income Tax

Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes

Tax Residency

Day Threshold

183 days

Note

183 days in a tax year. Residency rules become operative when the new Personal Income Tax Law takes effect.

Income Tax Rates

Top Marginal Rate

0 (5% from 2028)

Structure

No personal income tax today. Royal Decree 56/2025 introduces a 5% tax on income above OMR 42,000 (~USD 109,000) from 1 January 2028 — the first PIT in the GCC.

Foreign Income Treatment

System

Exempt

Details

Currently no tax on any personal income. Under the 2028 law, residents will be taxed on worldwide income above the threshold, with exemptions for certain investment income and a foreign tax credit.

Investment Income

Capital Gains

Dividends

Interest

No capital gains tax for individuals today; the 2028 PIT law taxes gains on real estate held under 2 years

Wealth & Inheritance

Wealth Tax

No - No wealth tax

Inheritance Tax

No - No inheritance tax; inheritances remain exempt under the 2028 law

Special Regimes

Investor Residency Programme

5-year or 10-year residency for investors in property or business (from ~OMR 250,000), no local sponsor needed.

Practical Notes

Still 0% for now, but Oman is the first Gulf state to legislate a personal income tax. The 5% rate from 2028 hits only roughly the top 1% of earners, yet it changes the "GCC = permanently tax-free" assumption. Watch for implementing regulations through 2027. Employment for foreigners is tied to employer sponsorship (except investor visas).

Business & Corporate Tax

Corporate rate, withholding, VAT, substance, Pillar Two and treaties

Corporate Income Tax

Headline Rate

15%

Effective Rate Note

15% standard. 3% for qualifying small enterprises meeting Omanisation and turnover conditions. 55% for petroleum income. 15% DMTT for in-scope MNEs from 2025 under Pillar Two.

Free Zone / Incentives

Duqm, Sohar, Salalah free zones and Knowledge Oasis Muscat: 10-30 year CIT exemptions, 100% foreign ownership, customs relief. Substance and Omanisation ratios apply.

Withholding Taxes

Dividends

Interest

Royalties

10%

VAT / GST

Rate

Note

5% VAT since April 2021; basic foods, healthcare, education zero-rated or exempt

Compliance & Substance

Substance Requirements

Moderate - Omanisation quotas and free-zone activity requirements

Compliance Friction

Moderate - modern e-filing, but sponsorship and labour rules add friction

Notable Regimes

0% personal tax until 2028
Free zone CIT holidays
Investor Residency Programme

Beyond tax

Living in Oman

Oman offers a calm, safe Gulf lifestyle with dramatic mountain and coastal scenery and, for now, no personal income tax.

#9of 53 best places to live

Expat hub: Muscat
Monthly budget: ~$2,800
Climate: Hot and dry, 28°C
Time zone: UTC+4

Tax96
Cost of living$$$
Safety85
Healthcare72
English72
Internet120 Mbps
Warm climate100
Residency access40
Scores 0-100, higher is better. Editorial composite ratings; see method.

Sweet spot🇴🇲 Oman← Heavier taxLighter tax →

Ways to get residency

Investor Residency ProgrammeFrom about OMR 250,000 in property or business for 5 or 10 years
Employment residenceSponsorship by an Omani employer

Watch out: A 5% personal income tax on high earners starts in 2028, and summers are extremely hot.

See how Oman ranks for remote workers, retirees and families

Data Sources

PwC Worldwide Tax Summaries — Oman Oman Tax Authority Royal Decree 56/2025 — Personal Income Tax Law OECD Corporate Tax Statistics

Last verified: September 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in Oman?

Oman has a top personal income tax rate of 0 (5% from 2028). The tax structure is: No personal income tax today. Royal Decree 56/2025 introduces a 5% tax on income above OMR 42,000 (~USD 109,000) from 1 January 2028 — the first PIT in the GCC.. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Oman?

Oman uses a exempt system for foreign income. Currently no tax on any personal income. Under the 2028 law, residents will be taxed on worldwide income above the threshold, with exemptions for certain investment income and a foreign tax credit.

What are the residency requirements for Oman?

Tax residency in Oman generally requires 183 days of physical presence. 183 days in a tax year. Residency rules become operative when the new Personal Income Tax Law takes effect.. Always verify current rules with official sources.

Is there a wealth tax in Oman?

No, Oman does not have a wealth tax. No wealth tax

What is the corporate tax rate in Oman?

The corporate tax rate in Oman is 15%. 15% standard. 3% for qualifying small enterprises meeting Omanisation and turnover conditions. 55% for petroleum income. 15% DMTT for in-scope MNEs from 2025 under Pillar Two.

Is there capital gains tax in Oman?

Tax Atlas records a capital gains tax rate of 0% for Oman. No capital gains tax for individuals today; the 2028 PIT law taxes gains on real estate held under 2 years. Verify your situation with a qualified adviser.

Does Oman have an inheritance tax?

No, Oman does not levy an inheritance or estate tax according to the data. No inheritance tax; inheritances remain exempt under the 2028 law.

What is the VAT or sales tax rate in Oman?

The standard VAT / GST rate in Oman is 5%. 5% VAT since April 2021; basic foods, healthcare, education zero-rated or exempt.

US citizen moving to Oman? Read this first.

Oman has 0% personal income tax, so the US-citizen math is dominated by FEIE plus self-employment tax.

•FEIE (Form 2555) shields ~$130k of earned income in 2026. Income above that has no Foreign Tax Credit to offset US tax (no foreign tax was paid), so it's taxed at regular US rates.
•Self-employment tax (15.3%) is owed in full — Oman has no totalization agreement with the US, so there is no SE-tax exemption.
•Investment income (dividends, capital gains, interest) is taxed at standard US rates. No FTC because no Oman tax was paid.
•Oman residency requires 183 days. State residency severance from a sticky state (CA, NY, VA, NM, SC) before international move is the highest-stakes practical step.

Read the full US-citizen moving-abroad guide

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