Expats can rent or purchase properties in different freehold areas of Dubai. You can choose these freehold areas according to your budget and lifestyle preferences. However, beyond rent or mortgage costs, there are additional charges to consider, one of the most important being the Dubai Municipality housing fee. This fee is collected by the Dubai Municipality and billed through DEWA, making it a standard part of monthly utility expenses for most tenants and property owners.
Here are all the details related to the Dubai Municipality housing fee, who needs to pay it and how to estimate it.
What is the Dubai Municipality Housing Fee
The Dubai Municipality housing fee is a government charge applied to expatriates in exchange for municipal services. These services include:
- Public cleanliness and waste management
- Food safety inspections
- Environmental and pollution control
- Maintenance of public parks and infrastructure
- General civic and community services
The fee is collected by DEWA on behalf of the Dubai Municipality and is added to the monthly utility bill. For expats, this fee is considered part of the cost of living in Dubai, whether they are renting an apartment or villa or own a property.
Dubai Municipality Housing Fee Rate
The fee for expat tenants and landowners is 5% of the total annual rent of the property. The fee will be divided into instalments as per the duration of the contract and will be included in the monthly DEWA bill. For instance:
If your annual rent is AED 10,000:
- 5% of AED 10,000 = AED 500 per year
- AED 500 ÷ 12 = AED 41.66 per month
You will pay approximately AED 41.66 monthly as part of your DEWA bill. Additionally, it is one of the major hidden costs of renting in Dubai to consider before drafting your budget.
It is important to note here that the tenant’s fee is based on the annual rent shown in the Ejari tenancy contract, while the homeowner’s fee is based on the municipality’s assessed or RERA-derived rental value for that property.
Who Pays the Housing Fee in Dubai
The Dubai Municipality housing fee is applicable to expatriates who own or rent a property in the emirate, while UAE nationals are generally exempt from this charge.
For rented properties, the housing fee is typically paid by the tenant. However, if the property is vacant or not leased, the responsibility for paying the fee falls on the property owner.
How to Pay the Municipality Fee in Dubai
You are not required to pay the fee separately. The fee is automatically calculated and included in the DEWA bill. It is broken down into 12 instalments, which you pay throughout the year. That said, when paying DEWA bills in Dubai, you can see a separate section in the bill referring to the Municipality fee charged.
Dubai Municipality Housing Fee Adjustment
In case of any increase or decrease in the annual rent, the tenants or property owners are liable to inform the Dubai Municipality Department. You can make this adjustment request online through the Dubai Municipality website.
The following are the steps involved in requesting a Dubai Municipality housing fee adjustment.
- Visit the Municipality’s official website or download the Dubai Municipality app and the DubaiNow App.
- Log in by using UAE Pass and navigate to ‘Individual Services’ under the ‘Services’ section.
- Select ‘Dubai Municipality Housing Fee’ and click on ‘Apply to Amend Dubai Municipality Housing Fee’
- Fill in all the details, including:
- DEWA number
- Ejari Number
- Premise number
- Property type
- Area
- Address
- Number of bedrooms
- Additional info (if any)
- Submit the required documents(if any), such as the title deed and layout.
- Finish the process and your municipality fee will be updated in the DEWA bill within three working days.
If you are overcharged in the bill because of any glitch or late update, reimbursement will be made in the next bill.
FAQs
Who is exempted from paying the Dubai Municipality Housing fee?
UAE nationals are exempt from the housing fee for their primary residence; other limited exemptions may apply under specific circumstances.
Is the fee only applicable when I move to a new residence?
No, the fee is charged annually regardless of the time. If you shift two residences within a year, you will have to pay the fee accordingly.
Where can you get more information about the housing fee in Dubai?
For further information, you can contact the Dubai Municipality directly by calling 800 900.
That is all about the Dubai Municipality housing fee that needs to be paid by all the expats. Since the fee is linked to rental value, it may change when your tenancy is renewed or your rent is revised. To better manage your overall living costs, it is always helpful to explore different properties for rent in Dubai and choose a home that fits your budget and lifestyle.
Stay tuned to dubizle’s property blog for more information on Municipality services in Dubai.
