Expatriates can rent properties in Abu Dhabi. When you are renting property, it comes with certain costs that need to be kept in mind. In February 2016, the Abu Dhabi Municipality of Housing and Transport announced the municipality fees for the tenants in the Emirate. The fee is included in ADDC bills alongside electricity and water charges.
Let’s go through the complete details of Abu Dhabi Municipality fees for the tenants and how to register and pay them.
What is the Municipality Fee in Abu Dhabi?
Similar to Dubai municipality housing fees, Abu Dhabi Municipality fees are charged to the tenants alongside electricity and water bills. Besides, it is upon the tenant’s choice to pay annual charges altogether or make monthly installments. Therefore, if you rent an apartment in Abu Dhabi or any other type of property, you will be obliged to pay the fees via ADDC Municipality fee payment gateways.
Let’s go through how one can register for the Abu Dhabi Municipality of Housing and Transport, the fee structure, and how to pay it.
HOW TO REGISTER
When you rent a property, you need to register for Tawtheeq in Abu Dhabi. Once you have registered on Tawtheeq online, you will be automatically registered to the Abu Dhabi Municipality fees. This fee will apply to the tenants only and will come with utility bills.
It is to be noted that the Abu Dhabi Municipality fee applies to expat tenants. Whereas, UAE nationals are exempted from the fees for all the residential contracts intended for their use.
HOW MUCH IS MUNICIPALITY FEE IN ABU DHABI?
The Abu Dhabi Municipality fees are calculated as 5% of the rent value mentioned in the tenancy contract. Moreover, AED 450 is the minimum fee to be paid annually. This is how you calculate the annual and monthly Abu Dhabi Municipality fees:
For Example: If your rent as per the tenancy contract in Abu Dhabi is AED 20,000. Multiply it by 5%. It will become AED 1000. Therefore, you will need to pay AED 1000 annually which will be added to your ADDC bills. However, you can divide AED 1000 by 12 to make installments of Abu Dhabi Municipality fees. That said, you will have to pay AED 83.33 per month.
Moreover, it is important to note that the Abu Dhabi Municipality fee applies to all tenancy contracts irrespective of the agreement period. Besides, the municipality fee is to be paid within 10 days. Alongside, Abu Dhabi Municipality property registration fees is AED 50 for documentation and registration of economic lease contracts separately regardless of the tenancy agreement period.
HOW TO PAY ABU DHABI MUNICIPALITY FEES
Tenants can pay Abu Dhabi Municipality fees through the ADDC bill payment methods. For instance, tenants can register at the ADDC official website and pay their bills online through ADDC mobile app and official website or partner banks.
Failure to pay Abu Dhabi Municipality fee within the due date can result in the disruption of electricity and water in rented homes. Therefore, it is recommended to pay the municipality fees on time as you will have to pay new connection charges after the services are disconnected.
WHO NEEDS TO PAY ABU DHABI MUNICIPALITY FEES?
All tenants except UAE Nationals need to pay municipality fees according to the rent value of their rental property in Abu Dhabi. However, if you live in rented accommodation provided to you by your employer, they will need to pay the fees. Moreover, it is important to consider that tenants will have to pay Abu Dhabi Municipality fees even though their rented property is vacant.
UPDATING TENANCY CONTRACT RENEWAL
Tenants will receive a notification two months before the tenancy contract expiry. Speaking of that, if the tenants intend to renew their tenancy contract, they need to update the details and renew Tawtheeq online on the Abu Dhabi Department of Municipalities and Transport to avoid any service disruption.
This was all about the Municipality fee that needs to be paid when you rent a house in Abu Dhabi. If there is any problem in the calculation of municipality fees, tenants can contact Abu Dhabi Government Contact Centre at 800 555 or email tawtheeq@adm.abudhabi.ae.
Stay tuned to the UAE’s leading real estate blog to learn more about property service charges in different Emirates.
