Starting a business in
🇴🇲Oman
Checked November 4, 2026 · How we score
Corporate tax
15%
Top income tax
0%
Setup from
$3,000
all-in, first year
Time to form
14 days
visit usually needed
Taxes in Oman
| Corporate income tax | 15% 15% on taxable profit (cut from 30% in 2022). Small companies with turnover under OMR 100,000 can pay 3% and certain free zone companies get exemptions. Oil and gas companies are taxed at 55%. A 15% domestic top-up tax for large multinational groups has been introduced from 2025. |
|---|---|
| Personal income tax (top) | 0% No personal income tax today. Royal Decree 56/2025 introduces a 5% tax on annual income above OMR 42,000 from 1 January 2028; it is expected to affect roughly 1% of the population. |
| Tax system | No personal income tax |
| Capital gains tax | 0%No separate capital gains tax for individuals today; gains of companies are taxed at the 15% corporate rate. Check the 2028 personal income tax rules for investment income. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 5% |
| Social security | Social security applies to Omani nationals (employer about 11.5%, employee 7%); expatriates are outside the scheme. Omanisation quotas apply to many sectors. |
Forming a company in Oman
| Usual entity | LLC (foreign-owned allowed up to 100%) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $3,000–$8,000 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Moderate |
Residency and visas
Investor residency of 5 or 10 years is available for property purchases (from about OMR 100,000 in Integrated Tourism Complexes) and for larger business investments; thresholds vary by category, so confirm with the Royal Oman Police. There is no digital nomad visa.
| Digital nomad visa | No |
|---|---|
| Golden visa | Yes, from $260k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Investor Residency (5 and 10-year)
Residence for foreign investors who buy qualifying property or invest in approved projects, without needing a sponsor.
Free zones (Duqm, Salalah, Sohar)
Up to 100% foreign ownership, customs relief and long corporate tax holidays (up to 25 years) for qualifying activities.
Personal income tax from 2028
Oman will become the first GCC state with a 5% income tax on high earners from January 2028, so long-term personal tax planning here should factor that in.
Pros and cons
Why founders pick Oman
- No personal income tax until 2028 and then only 5% on high earners
- 15% corporate tax is competitive in the region
- Up to 100% foreign ownership
- Lower costs than the UAE
Watch out for
- Personal income tax arrives in 2028
- Omanisation quotas increase hiring cost
- Smaller startup ecosystem and slower bureaucracy
- In-person steps for visa and banking
Best for: Logistics, energy and tourism businesses · Companies using the Duqm or Sohar free zones · Founders who want a cheaper, quieter Gulf base
Oman: common questions
Does Oman have income tax?
Not for individuals at the moment. Royal Decree 56/2025 introduces a 5% personal income tax on annual income above OMR 42,000 starting 1 January 2028, so only high earners are affected.
What is the corporate tax rate in Oman?
The standard rate is 15%. Small businesses with turnover under OMR 100,000 may pay 3%, and free zone companies can receive long tax holidays.
Can foreigners own 100% of a company in Oman?
Yes. The Foreign Capital Investment Law allows 100% foreign ownership in most sectors without a local partner, with some restricted activities. A commercial registration through the Invest Easy portal is required.
How much does it cost to set up a company in Oman?
Expect roughly $3,000 to $8,000 in the first year including licences, commercial registration, office lease and visas, with similar annual running costs. Regulated sectors cost more.
Is Oman a tax haven?
Oman is usually described as low-tax rather than a tax haven. It has a 15% corporate tax, 5% VAT and, from 2028, a 5% income tax on high earners, and it is not on the EU blacklist.
Sources
- Oman Tax Authority
- Ministry of Commerce, Industry and Investment Promotion (Oman)
- PwC Tax Summaries - Oman
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.