Tenancy agreement fee hiked in Oman governorates

The move was expected as the Muscat Municipality had already announced a hike as a part of measures taken by the Ministry of Finance in the 2016 State Budget

(Getty Images)

(Getty Images)

The municipal fee for all the tenancy agreements has been increased from 3% to 5% in Dhofar and the rest of Oman, after implementing it in Muscat.

In a ministerial decision, the Governor of Dhofar has asked the landlords to pay 5% of the lease value as fee.

Ahmed bin Abdullah Al Shuhi, Minister of regional municipalities and water resources, also issued a ministerial decision for the landlords of residential, commercial and industrial properties stating that the fee for rent contracts has been raised to 5%.

The decision also mentioned that either the landlord or tenant can pay the fee.

The move was expected as the Muscat Municipality had already announced a hike as a part of measures taken by the Ministry of Finance in the 2016 State Budget to shore up non-oil revenues.

Real estate agents, however, welcomed the decision to collect 5% of the land value as fee on specified registrations in Dhofar and other areas of Oman, reported the local daily Times of Oman.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

3
Dubai real estate: which way will it go?

Dubai real estate: which way will it go?

In this special report, Arabian Business analyses the state of...

3
Diving for answers: What's happened to Dubai Pearl?

Diving for answers: What's happened to Dubai Pearl?

The mysterious inability of a $6bn mega-project on prime land...

9
Most Discussed
  • 3
    UAE landlords set to get tougher on rental cheques

    Article is pointless - There will be no recovery in the rental market for 3 yrs minimum - we haven't seen anything close to the bottom of this - this time... more

    Tuesday, 28 February 2017 1:21 PM - Lord Wilson
  • 2
    Dubai residents appeal to fix 'roundabout of doom'

    These 2 roundabouts (Arabian Ranches/Motor City & Studio City) are mostly choked and always dangerous, because of Schools, Offices and fast growing Residential... more

    Tuesday, 28 February 2017 1:22 PM - Anon
  • 2
    UAE salaries expected to rise, report says

    Nowadays people are struggling to secure a job in market and they are accepting offer which is less from their current package there is no chance of salary... more

    Tuesday, 28 February 2017 1:21 PM - Daljit Singh
sponsoredTracking