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Expats can rent or purchase properties in different freehold areas of Dubai. You can choose these freehold areas according to your budget and living standard. However, before estimating the cost of renting/purchasing and living, it’s best to include additional costs tenants must pay, including housing fees. The Dubai Municipality Housing fee is an amount charged by the Municipality department from tenants. The fee is included in your monthly bill and must be paid in instalments.
Here are all the details related to the Dubai Municipality housing fee, who needs to pay it and how to estimate it.
What is Dubai Municipality Housing Fee for Expatriates
Dubai Municipality housing fee is an amount charged by the Municipality department and collected by DEWA on an annual basis. The department charged this amount from expatriates in return for the service provision. This includes security, cleanliness, food safety, pollution and waste management, public parks and others. Therefore, even if you are looking for apartments for rent in Dubai or a villa for sale, you have to pay this fee.
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. Hence, it is one of the major hidden rental costs in Dubai to consider before drafting your budget.
Who Should Pay Housing Fee in Dubai
All the expats residing in the Emirates of Dubai are liable to pay the municipality fee. If the property is rented out, the tenant will pay the fee. Whereas, if the property is vacant, the property owner is obligated to pay the housing charges in Dubai.
Dubai Municipality Housing Fee Calculation
The fee is charged according to the annual rent mentioned in the RERA Dubai tenancy contract. The most convenient way of calculating municipality fees is to estimate 5% of the total rent. Multiply the annual rent by 5% and divide the answer by 12, this will be the monthly instalment that you are required to pay.
For instance: if your annual rent is AED 10,000, 10,000✕5%= AED 500. You can divide the total amount by 12 for monthly instalments: 500/12= AED 41.66.
How you 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. Hence, you will pay the municipality fee with the bill. You can see a separate section in the bill referring to the Municipality fee charged. Find out how to pay DEWA bills in Dubai, to explore multiple options for paying utilities in the Emirate.
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 official website of Dubai Municipality.
Following are the steps involved in requesting Dubai Municipality Housing fee adjustment.
- Visit the Municipality’s official website and navigate to ‘Individual Services’ under the ‘Services’ section.
- Select ‘Dubai Municipality Housing Fee’ and then ‘Apply to Amend Dubai Municipality Housing Fee’
- Fill in all the details and submit the required documents (title deed and layout).
- Finish the process, and your municipality fee will be adjusted in the DEWA bill.
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?
Only UAE nationals are exempted from paying the housing fee. Other than them, every tenant or property owner must pay the fee with the bill.
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.
What should I do if my DEWA bill does not reflect the correct housing fee?
If your DEWA bill shows an incorrect housing fee, contact Dubai Municipality or DEWA customer service to request a correction and submit updated tenancy contract details.
How does the housing fee impact property owners with multiple vacant properties?
Property owners with multiple vacant properties in Dubai must still pay the housing fee annually, based on the rental value, regardless of occupancy status
This was all about the Dubai Municipality Housing fee that needed to be paid by all the expats. The Municipality fee is charged according to the rent and will increase with the annual increase in rent. Therefore, if you cannot pay the rent increase, browse through these properties for rent in Dubai and move into a more affordable residence.
Stay tuned to dubizzle’s property blog for more information on Municipality fees in Dubai.
