Dubai Municipality housing fee
Many in the expat community are unaware of this additional charge often ask what is the Dubai Municipality housing fee that keeps appearing on their monthly DEWA bill.
WHAT IS THE HOUSING FEE IN DUBAI?
The housing fee in Dubai is an additional, annual charge for expatriates living in their dream accommodation in the emirate. The Dubai Municipality charges a housing fee for its services, which is to be paid along with the Dubai Electricity and Water Authority (DEWA) monthly bill.
The Dubai Municipality housing fee for tenants and homeowners is set at 5% of the property’s annual rent and is paid in monthly instalments. For example, if you are renting an apartment for an annual cost of AED 50k per annum, the municipality fee for the year would be AED 2,500. This is then split into 12 equal instalments, paid as part of the DEWA bill.
The fee is charged for providing civil services like cleaning, pollution reduction, food safety, opening and upkeep of recreational facilities, waste management services and burial ground. So irrespective of which area you are renting in Dubai, you will still have to pay these municipality charges.
WHO HAS TO PAY DUBAI MUNICIPALITY HOUSING FEE?
The Dubai housing fee applies to expatriates who own or rent a property in the city. UAE nationals are exempted from paying the Dubai Municipality housing fee.
If the property has been rented out, the tenant is responsible for paying the housing fee. Otherwise, the homeowner is responsible for making the housing fee payment.
HOW IS DUBAI HOUSING FEE CALCULATED?
For tenants, the housing fee in Dubai is set at 5% of the annual rent mentioned in the Ejari tenancy contract.
For homeowners, the Dubai Municipality housing fee calculation is done through the average rental value of their property, as determined by the Real Estate Regulatory Authority (RERA). Homeowners can use the RERA rent calculator to determine the average rent for their apartment or villa. They will then need to pay 5% of this amount as the housing fee in Dubai.
HOW DO YOU PAY THE HOUSING FEE IN DUBAI?
The annual housing fee will be part of your monthly DEWA utility bill. It’s usually broken down into 12 instalments, which you pay throughout the year.
You need not manually add these charges as the housing fee is automatically added to your utility bill system when you set up the DEWA connection for your home. Thus, when paying your DEWA bill, you will see that the charges are broken down into water, electricity, sewerage and the Dubai Municipality housing fee.