Oman: Tax, Salary & Cost of Living Guide

Verifindex Score

3.81 / 5 - A

Ranked #7 of 21

Effective tax rate at the $100,000 USD benchmark: 0.0%

Key stats

Median annual salary

OMR 14,400 (US$37,400 USD)

Cost of living index (US = 100)

47.2

Safety

98.63261727406785/100

Healthcare

73/100

Climate: average annual temperature

27.7°C / 81.9°F annual average (1991–2020). Informational, not weighted in Verifindex Score

Happiness

62/100. Informational, not weighted in Verifindex Score. Estimated context value; not covered by WHR 2024

Freedom

37.3682474/100

Tax snapshot (employed, No income tax)

About Oman for expats

Oman currently has no personal income tax, though this is scheduled to change. A 5% personal income tax on income above OMR 42,000 (approximately $109,000) is planned for 2028 as part of Oman's fiscal diversification strategy. For now, employed expats keep their full salary with no income tax deductions.

Omani nationals contribute 8% of salary to the Social Protection Fund (SPF). Expat employees currently have no employee-side social security deductions, though a new 9% savings scheme for expats is scheduled to activate in July 2027. VAT at 5% applies to most goods and services since 2021.

Oman is quieter and less commercially developed than the UAE or Qatar, which is part of its appeal for those seeking a slower pace. Muscat, the capital, is clean, safe, and scenic, set between mountains and coast. The cost of living is lower than in Dubai or Doha, particularly for housing and dining. Oman offers a more traditional Gulf experience, with less of the high-rise urban development found in neighbouring states.

The Omani rial (OMR) is pegged to the US dollar at a fixed rate of approximately 0.385, providing currency stability.

Salary & income

The median expat professional salary in Oman is approximately OMR 14,400 per year (around OMR 1,200 per month). Oil and gas remains the dominant industry and the primary employer of expat professionals. Tourism, logistics, and construction are growing sectors under Oman's Vision 2040 diversification plan.

Salaries in Oman are generally lower than in the UAE or Qatar for comparable roles. However, the lower cost of living partially offsets this, and savings potential remains strong given the zero income tax. Senior roles in oil and gas, particularly with PDO (Petroleum Development Oman) and international operators, command premium packages.

Employment packages typically include housing, transport, and annual flights. End-of-service gratuity is payable by the employer on completion of the contract, based on length of service.

Key things to know

Healthcare in Oman has improved in recent years, with good public hospitals in Muscat and major towns. Expats are generally required to have private health insurance, which most employers provide. Private healthcare is of reasonable quality in Muscat but more limited outside the capital. For specialist or complex care, some residents travel to the UAE or further afield.

Work visas require employer sponsorship through the Royal Oman Police. Omanisation policies require a percentage of the workforce in certain sectors to be Omani nationals, which can affect the availability of expat roles in some industries. A new labour law introduced in 2023 brought changes to contracts and end-of-service provisions. Always verify current visa and employment requirements on the official Royal Oman Police or Ministry of Labour website.

Oman's climate is hot and arid, with summer temperatures in Muscat regularly exceeding 40°C and high humidity along the coast. The interior desert regions are even hotter but drier. Winters (November to March) are pleasant at 18 to 28°C, making it the best season for outdoor activities. The Dhofar region in southern Oman experiences a monsoon season (khareef) from June to September, bringing cooler temperatures and green landscapes.

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