Renting out property in Oman while living in India

More on ownership

Barred outright

Land and property in Musandam, Al Buraimi, Al Dhahirah, Al Wusta and Dhofar outside Salalah, plus agricultural land and sites near borders and heritage, under Royal Decree 29 of 2018; and ordinary villas and land outside the two routes above.

Inheritance and gifts

A usufruct or tourism-complex title passes to the heirs of a non-Omani owner within the same framework. No inheritance tax.

Owning through a company

A foreign-owned company buys in the same places under the same decrees. Outside this guide.

Letting it out from abroad

May a non-resident owner let it

Yes, once lawfully owned. The lease must be registered, which a non-resident owner does through a representative or a licensed broker.

Licences, permits, landlord registration

None for a long-term let. Short-term letting falls under tourism licensing.

Local agent or representative

In practice yes. Municipal registration, cheque collection and the rental committee assume someone present with a civil ID.

The rent agreement

Written agreement required

Yes. Royal Decree 6 of 1989 and the municipal rules require a written lease, on the municipality's form, registered before the tenant moves in.

Mandatory standard form

The municipality's standard contract, in Arabic, with its mandatory clauses; the parties add their own terms in an annex.

Language

Arabic, with bilingual versions in common use; Arabic governs.

Registry

The municipality where the property sits, Muscat Municipality for the capital, online through the government services portal.

When registration is required

Every residential lease of any length.

Who registers

The landlord, with the title deed, the contract and both parties' civil IDs or passports; a representative can do it with a Power of Attorney.

Registration cost

A registration fee of three percent of the rent for the whole contract period, paid by the landlord at registration and in practice often passed to the tenant.

If it is not registered

A fine for an unregistered lease, and an unregistered contract is weak before the rental committee and is not VAT-exempt.

Stamp duty

None.

Notarisation and witnesses

Not applicable

E-signature

Recognised under the Electronic Transactions Law issued by Royal Decree 39 of 2025, which replaced the 2008 law and grades simple, advanced and qualified signatures; registration still happens on the municipal portal.

The usual term

One year, renewed automatically unless either side gives notice.

Rules the agreement must respect

Deposit

No statutory cap. One to two months' rent is usual, returned on handover less documented damage.

Rent increases

Not within the first three years of a tenancy, and then by no more than seven percent a year, under the 1989 decree as amended.

Notice periods

Three months before the end of the term, or half the term if shorter, for either side to decline renewal; otherwise the lease renews on the same terms.

Disputes

The Rental Disputes Committee at the municipality, with appeal to the courts; self-help eviction is unlawful.

Mandatory disclosures

Not applicable

Tax when the landlord lives abroad

Is the rent taxed here

Not yet. Oman has no personal income tax until 1 January 2028, when Royal Decree 56 of 2025 brings in five percent on an individual's income above OMR 42,000 a year; rent from Omani property counts for residents and non-residents alike from then.

Withholding at source

No

Withholding rate

Not applicable

Who withholds

Not applicable

What the tenant must register

Not applicable

How to reduce it

Not applicable

Filing and tax ID

None until 2028. From then an annual return with the Tax Authority where income passes the threshold; the regulations that say how a non-resident files are still being issued.

VAT or GST on rent

None on residential rent. Oman's five percent VAT exempts a residential lease that is registered and runs three months or more; a short or unregistered let can fall within VAT.

Municipal and housing fees

The three percent lease registration fee. No annual property tax.

Money inside the country

How tenants pay

Bank transfer or post-dated cheques in rials.

Currency of rent

OMR

Bank account for a non-resident owner

Omani banks open accounts for residents with a civil ID; a non-resident owner usually receives rent through a property manager or a GCC bank.

Paying rent to an overseas account

Allowed. Nothing in the law requires a local account, though cheques assume one.

Taking rent out of the country

No capital controls and no exit tax. The rial is pegged to the US dollar; banks and exchange houses transfer abroad at their margin.

Owning property abroad from here

Buying abroad

Allowed under the Liberalised Remittance Scheme: up to USD 250,000 per person per financial year, which relatives may pool for one property. Also by inheritance, by gift from a resident who owned it lawfully, or from income already held abroad.

Reporting foreign assets and accounts

Every resident reports foreign property, accounts and the income from them in Schedule FA of the annual return, with the rent itself in Schedule FSI. Leaving it out is penalised under the black money law.

Tax at home on foreign rent

Residents are taxed on worldwide income, so foreign rent is taxed in India at slab rates after the standard deduction. Tax paid abroad is credited through Form 67, filed before the return, under the treaty with that country or unilaterally where there is none.

Bringing rent home

No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad.

Digital identity for e-signing

Aadhaar eSign signs any Indian document and a growing number of foreign platforms accept it. Where it is not accepted, a certificate-based digital signature from an Indian certifying authority, or the foreign platform's own e-signature, does the job.

Between India and Oman

What applies to this pair of countries in particular.

Tax treaty between the two countries

Yes

Withholding under the treaty

Not applicable: Oman withholds nothing on rent and taxes nothing until 2028, so the rent is Indian-taxable income at slab rates with nothing to credit; from 2028 Omani tax above the threshold is credited through Form 67.

The usual vehicle for this corridor

A flat in a tourism complex or a Muscat usufruct bought under the Liberalised Remittance Scheme; a manager who registers the lease with the municipality.

Banking blocks

The three percent registration fee on every lease, and a bank account that needs a civil ID.

Typical remittance route and cost

Rials move to India by bank transfer with no Omani restriction; India has no inbound limit, taxes the rent at slab rates and takes Schedule FA disclosure.

What most people do

Buy under LRS, let on a registered one-year contract through a manager, and declare the rent and the account in India.

Sources

1. Oman Government Services Portal: register a lease contract — gov.om
2. Muscat Municipality: lease contract documentation — www.mm.gov.om
3. Oman Tax Authority: personal income tax questions and answers — tms.taxoman.gov.om
4. Oman Tax Authority: VAT questions and answers — tms.taxoman.gov.om
5. Oman Tax Authority: double tax agreements — tms.taxoman.gov.om
6. Ministry of Housing and Urban Planning — www.housing.gov.om
7. Central Bank of Oman: the foreign exchange market — www.cbo.gov.om
8. Ministry of Transport, Communications and IT: the Electronic Transactions Law — mtcit.gov.om
9. US Department of State: Oman investment climate statement — www.state.gov
10. RBI Master Direction: Acquisition and Transfer of Immovable Property under FEMA — www.rbi.org.in
11. Ministry of External Affairs: acquisition and transfer of immovable property in India by NRIs and OCIs — www.mea.gov.in
12. RBI FAQ: Accounts in India by Non-residents (NRE, NRO, current income) — www.rbi.org.in
13. RBI FAQ: Remittance of Assets (the USD 1 million limit) — www.rbi.org.in
14. RBI FAQ: Liberalised Remittance Scheme — www.rbi.org.in
15. RBI FAQ: Purchase of immovable property outside India — www.rbi.org.in
16. Income Tax Department: TDS rates, including section 195 for non-residents — www.incometaxindia.gov.in
17. Income Tax Department: Form 13, certificate under section 197 for a lower or nil rate — www.incometaxindia.gov.in
18. Income Tax Department: Form 15CA, remittance to a non-resident — www.incometaxindia.gov.in
19. Income Tax e-filing portal: Form 67 FAQ, foreign tax credit — www.incometax.gov.in
20. Income Tax e-filing portal: guide to Schedules FA, FSI and TR — www.incometax.gov.in
21. The Registration Act, 1908 (Delhi Revenue Department copy), section 17 on leases — revenue.delhi.gov.in
22. MeitY: The Information Technology Act, 2000 (sections 3, 3A and 10A) — www.meity.gov.in
23. UIDAI: enrolment and update, who may enrol — uidai.gov.in
24. UIDAI: NRI Aadhaar enrolment — uidai.gov.in
25. PIB: Model Tenancy Act, states that have adopted it (25 July 2022) — www.pib.gov.in
26. PIB: draft Model Tenancy Act, the security deposit cap (11 July 2019) — www.pib.gov.in
27. StockHolding e-Stamping, the Central Record Keeping Agency — www.shcilestamp.com
28. IGR Maharashtra: leave and licence e-registration and stamp duty — igrmaharashtra.gov.in
29. GST Council: Notification 12/2017-Central Tax (Rate), exemption for residential dwellings — gstcouncil.gov.in
30. CBIC: Notification 04/2022-Central Tax (Rate), renting to a registered person — cbic-gst.gov.in
31. Controller of Certifying Authorities: digital signature certificates — cca.gov.in
32. Delhi Police: citizen services, including tenant registration — delhipolice.gov.in