We study the effects of dissipation on a randomly dilute transverse-field Ising magnet at and close to the percolation threshold. For weak transverse fields, a novel percolation quantum phase transition separates a super-paramagnetic cluster phase from an inhomogeneously ordered ferromagnetic phase. The properties of this transition are dominated by large frozen and slowly fluctuating percolation clusters. Implementing numerically a strong-disorder real space renormalization group technique, we compute the low-energy density of states which is found to be in good agreement with the analytical prediction.