OmanCompany formation, tax and banking
A neutral, stable Gulf base with free zones, shipping and residency through property.
Oman offers something its neighbours can't: diplomatic neutrality, and ports outside the Strait of Hormuz. The Duqm and Salalah free zones give tax holidays of up to thirty years, 100% foreign ownership and direct shipping to the Indian Ocean, which is why manufacturers and logistics companies keep looking here.
Oman also runs a simple residency-through-property programme starting at OMR 250,000, giving you Gulf residency without Dubai's costs.
Why people choose Oman
- Free zone company tax exemptions for 10 to 30 years
- 100% foreign ownership in the Duqm and Salalah free zones
- Ports outside the Strait of Hormuz, shipping direct to the Indian Ocean
- Gulf residency through property from OMR 250,000
- No personal income tax at the moment
Where Oman fits
- Logistics and manufacturing
- Free zone operations
- Residency
Where Oman fits in a structure
Typical role · Free zone operating company
An Oman free zone company is a real operating business, such as a factory, logistics hub or shipping operation in Duqm, Salalah, Sohar or Al Mazunah. It can get company tax exemptions for 10 to 30 years instead of the normal 15%, with ports that sit outside the Strait of Hormuz. Separately, buying property can give you Gulf residency at a lower price than the UAE.
What it depends onFree zone benefits need real operations in the zone, a minimum investment and some Omani staff, a 10% tax is kept back on certain payments abroad, and where the owners live still decides their own tax.
A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.
Opening a bank account
Bank Muscat, Sohar International, National Bank of Oman and HSBC Oman serve businesses. You'll need commercial registration, a manager living in Oman and Ministry of Commerce paperwork. Free zone companies usually bank in Muscat.
How tax works here
15% company tax, cut to 3% for qualifying small businesses. Companies in the Duqm, Salalah, Sohar and Al Mazunah free zones get company tax exemptions for 10 to 30 years. No personal income tax. VAT is 5%. A 10% tax is kept back on certain payments to people abroad.
Real presence, and who can see the owners
Free zone benefits need real operations in the zone, a minimum investment, and some Omani staff ('Omanisation'). Ownership is registered privately with the Ministry of Commerce, Industry and Investment Promotion. Substance rules apply to certain activities.
When to choose it
Choose Oman for logistics, manufacturing and shipping that benefit from being outside Hormuz, or for Gulf residency at a lower property price than the UAE.
You get a written comparison, not a sales pitch.
Every Oman recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.
Considering Oman? Get a written comparison first.
Answer six questions and our team will come back with a shortlist, rough costs and where you could bank.
Questions we hear on every Oman intake.
- What does Oman residency by property cost?
- From OMR 250,000 (about USD 650,000) for a five-year renewable residency, with a ten-year option at OMR 500,000.
- Which free zone should I use?
- Duqm for heavy industry and logistics, Salalah for shipping and re-export, Sohar for petrochemicals and metals, Al Mazunah for trade with Yemen.
- Is there personal income tax in Oman?
- Not at the moment. A limited income tax on high earners has been discussed for several years but isn't in force.
What we typically deliver in Oman
Corporate Structuring
Groups of companies across several countries: holding companies, companies that own your IP, joint-venture companies, and moving a company to a new country.
MobilityResidency by Investment
Golden visas and residency in 13 countries — Portugal, the UAE, Malta, Greece and more.
StructuresReal Estate Structuring
Own high-value property through properly run companies in tax-efficient countries.
BankingInternational Banking
Personal introductions to 25+ private and business banks that are actively taking clients — UK, EU, Gulf, Asia, Caribbean, US.
More Middle East jurisdictions & related insights
United Arab Emirates
A real-presence base for family offices and trading groups, with low tax.
Saudi Arabia
The Gulf's biggest market, with regional head-office incentives and a 30-year tax holiday.
Qatar
Companies in the Qatar Financial Centre: 100% foreign-owned, 10% tax, and profits free to leave.
Every engagement begins with a twenty-minute advisory call. The fee is in writing before any work begins. No hourly billing.