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Loan calculator Oman › Rental yield and ROI calculator (Oman)

Estimate only — not financial advice. Only your lender's offer is binding.

Rental yield and ROI calculator (Oman)

Updated

Example: a OMR 100,000 flat rented at an example OMR 6,600 a year, 1 month empty, OMR 620 a year in estimated costs, a manager at an example 5% and the 3% lease registration fee (OMR 198.000 a year, paid by the landlord; Muscat Municipality; other governorates: check your municipality). Gross yield 6.60% (rent ÷ price), net yield 4.93% in year 1 (what the rent leaves you ÷ price). With 30% down and a loan of OMR 70,000 at 6% over 20 years (instalment OMR 501.502 a month; OMR 33,367.000 of your own cash on the day, with the 3% registration fee), the rent falls OMR 1,089 a year short of the instalments, so you add money each year. Rent and costs are yours to enter; whether the price rises is your guess.

This page: a home or flat you buy to rent out (long-term lease). What the rent returns on the price and on your own cash, in plain words — with the lease registration fee the landlord pays every year. Non-Omanis follow separate rules on where they may buy — see who may buy. For a home you live in, use rent or buy?.
Buyer
Non-Omani buyers pay an extra OMR 25 application form. GCC nationals and other foreign nationals may buy only where the rules allow — see who may buy.
Prefilled at CBO's 6% ceiling for housing loans against salary. Use your offer's; assumed to stay the same.
An example — use your offer's. CBO: a housing loan at most 25 years.
CBO lets a loan run only until you are 70.
12 × the monthly rent. OMR 6,600 is only an example — look up what similar homes rent for; there is no official rent level or yield.
Between tenants, repairs. Your estimate.
Yearly costs (your estimates)
No official number — your estimate; OMR 500 is only an example.
No official number — your estimate; OMR 120 is only an example.
0 if you manage it yourself; 5% is only an example.
We found no official broker rate. Enter what you are quoted; leave empty if the tenant pays the broker or there is none.

Always counted: the lease registration fee, 3% of each year's rent, every year (it rises with your rent guess) — the landlord pays it (Muscat Municipality; other governorates: check your municipality). No VAT on residential rent. Income tax is not counted — see below why.

If you keep it and sell later

We found no official broker rate. Enter what you are quoted; leave empty if you sell without a broker.

Nobody knows how rents and prices will move. For context only: the official consumer price index for housing, water, electricity and fuel moved -0.6% in the year to June 2026, and the official residential real-estate price index 24.6% in the year to the second quarter of 2026 (NCSI) — one year each, not a forecast. Fill in up to three sets of your own guesses; the results appear side by side.

Guess 1
Guess 2
Guess 3

Fills 0%, 3% and 6% into guesses 1, 2 and 3. Round test numbers, not a forecast. Replace them with your own.

Buying costs that depend on your deal
Who pays the 3% registration fee?
The regulation does not say — as agreed in your contract. The same split is used when you sell.
We found no official broker rate. Enter what you are quoted; empty = no broker.
Your offer. CBO caps the processing fee on a housing loan at OMR 50.
Gross yield6.60%rent ÷ price: the headline number, before any cost
Net yield4.93%what the rent leaves you after costs ÷ price
Return on your own cash, year 1-3.26%

Year 1, in rials

Fill in at least one guess (both boxes) to see what happens if you keep it and sell, or press "Try with simple round numbers".

Cash on the day

    Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.

    The four numbers, in plain words

    • Gross yield — the yearly rent divided by the price. The number agents quote. It ignores every cost.
    • Net yield — what the rent leaves you after empty months, the 3% lease registration fee, maintenance, insurance, the manager and (in year 1) the letting broker, divided by the price. The honest version of the first number.
    • Return on your own cash — the cash the rent leaves you after the loan instalments, divided by the cash you put in on the day. With a loan this can be negative: the rent does not cover the instalments, and you pay the difference every year.
    • Profit if you sell — everything the rent left you over the years, plus what the sale leaves after your share of the 3% registration fee, the broker and paying off the loan, minus the cash you put in. The "yearly rate your cash earned" turns that into one percentage you can compare with a savings rate — it counts when each rial came in or went out.

    Finance for a property you rent out

    CBO's housing-loan limits — at most 90% of the value, at most 25 years, only until age 70, and a rate of at most 6% a year — apply to housing loans against salary. CBO's circular puts personal loans not based on salary, and loans against your own term deposits, outside these limits; we read no separate CBO rule for a loan to buy a property you rent out. So enter the down payment, rate and term of your offer: the calculator keeps the 10% minimum down payment and warns when your numbers go past CBO's limits for a loan against salary.

    Tax on the rent

    Residential rent is exempt from VAT (commercial property and short lets are taxable). Oman's personal income tax starts in 2028: 5% on the part of a resident's total yearly income above OMR 42,000, and residential rent counts as income (the rule deems part of the rent to be costs unless you claim your actual costs — see the rules box). The calculator counts no income tax, because whether you pay any depends on your whole income, not on this one property. If your income may pass the threshold from 2028, take the tax off the net figures yourself.

    What the rules say

    • Lease registration: a lease is registered with the municipality. Muscat Municipality charges 3% of the monthly rent times the months of the lease (plus a form fee) (Muscat Municipality; other governorates: check your municipality), and it is the landlord who pays it — so this page puts it on the landlord's side, not the tenant's.
    • Late renewal: if the registration is renewed more than a month late, the landlord pays a fine of 9% a year of the rent for the days late (Muscat Municipality).
    • Disputes: Royal Decree 12/2025 set up rental dispute committees, chaired by a judge, in each governorate, and made a lease an enforceable instrument.
    • Not read: the tenancy law's rules on rent increases, notice and eviction are not published on an official site we could read — check your lease and ask the municipality.
    • Registering the sale with the Ministry of Housing and Urban Planning: 3% of the property value. The regulation does not say who pays — choose it in the calculator. With a housing loan, registering the mortgage costs 0.5% of the mortgage. The fixed fees are OMR 5 for the request, OMR 2 for the contract and OMR 10 for the title deed; non-Omani buyers also pay a OMR 25 application form. Beneficiaries of the state housing-assistance programme are exempt once from the title-deed, sale and mortgage fees (not counted here). Ministerial Decision 36/2026 amended other items of the fee regulation (transfers into the owner's own company, housing-assistance exemptions); the 3% and 0.5% fees are unchanged.
    • VAT: the resale of a home, residential rent and bare land are exempt. The VAT law text we read does not say how the first sale of a new home is treated — ask the seller.
    • Broker: we found no official broker rate. The broker fields are your own figures (empty = no broker).

    Where to find real numbers

    There is no official rent level or yield. NCSI publishes a consumer price index with a housing group (rents sampled from rented homes) and a residential real-estate price index — they show how fast rents and prices change, not what a home rents for.

    Who may buy property in Oman

    • Omani citizens buy and register with the Ministry of Housing and Urban Planning.
    • Citizens of the other GCC states may buy, but not agricultural land and not in the areas listed for strategic or security reasons — the Ministry's service page names them (see the rules box).
    • Foreign nationals may buy land only within Integrated Tourism Complexes (ITCs).
    • Non-Omani buyers pay an extra OMR 25 property-ownership application form when the sale is registered. Check with the Ministry of Housing and Urban Planning before you pay a deposit.

    Questions people ask

    What is a good rental yield in Oman?

    In Oman, no official body publishes rental yields or rent levels. Gross yield is only rent ÷ price; the net yield after empty months, the lease registration fee, maintenance, insurance and a manager is the number to compare.

    Who pays the lease registration fee in Oman?

    The landlord. Muscat Municipality charges 3% of the rent for the whole term of the lease (other governorates: check your municipality), so for a one-year lease 3% of the year's rent — this calculator counts it every year, on that year's rent.

    Do I pay tax on rental income in Oman?

    In Oman, no VAT: residential rent is exempt. From 2028, residential rent counts as income for the personal income tax, which takes 5% of a resident's total yearly income above OMR 42,000. The calculator counts none, because it depends on your whole income.

    Can I get a housing loan for a property I rent out?

    CBO's housing-loan limits (at most 90% of the value, 25 years, 6% a year) apply to loans against salary. CBO puts personal loans not based on salary outside its limits; we read no separate CBO rule for a buy-to-let loan, so use your bank's offer.

    What does selling cost?

    In Oman, registering the sale costs 3% of the property value (the regulation does not say who pays), plus any broker — we found no official broker rate.