Dubai Housing Fee: What You Need to Know
| Aspect | Details |
|---|---|
| What Is It? | The Dubai Housing Fee (Municipality Fee)Mandatory charge for expatriates renting or owning properties. |
| Fee Amount | 5% of the property’s annual rental value. |
| For Tenants | Charged as 5% of the annual rent. |
| For Property Owners | Based on the unit’s official rental value according to the RERA Rental Index. |
| Included Charges | Covers municipal services such as food safety, security, cleanliness, waste management, pollution management, and parks. |
| Payment Frequency | Charged annually but paid in 12 monthly installments included in the DEWA bill. |
| Calculation Example | For an annual rent of AED 80,000, the housing fee is AED 4,000 per year (approximately AED 333 per month). |
| Duration of Application | The fee has been applied to expatriates since 2011. |
| Exemptions | UAE nationals are exempt from paying the housing fee. |
| Fee Reduction | Possible only if the overall rental value of the property changes. |
| Application for Change | Apply online via the Dubai Municipality website under “Individual Services” and “Dubai Municipality Fee.” Required documents include your DEWA bill and Ejari. |
| Processing Time | Requests are processed and fee modifications are made within 3 working days. |
| Overcharge Refunds | If overcharged, a refund will be granted as DEWA credit. |
FAQ: Understanding the Dubai Municipality Housing Fee
1. What is the Dubai Municipality Housing Fee?
The Dubai Municipality Housing Fee is an annual charge imposed by the municipality, collected through your monthly DEWA bill. It supports municipal services such as security, cleanliness, food safety, pollution and waste management, and the maintenance of public parks. The fee is set at 5% of the property’s annual rent.
2. Who needs to pay the housing fee?
All expatriates residing in Dubai are required to pay the housing fee. If the property is rented, the tenant is responsible for the fee. If the property is vacant, the homeowner must pay the fee. UAE nationals are exempt from this fee.
3. How is the housing fee calculated?
The housing fee is calculated as 5% of the property’s annual rent. The formula for the monthly payment is:
For example, if your annual rent is AED 10,000, your annual housing fee would be AED 500, resulting in a monthly fee of approximately AED 41.66.
Monthly Housing Fee = (Annual Rent × 0.05) / 12
For example, if your annual rent is AED 10,000, your annual housing fee would be AED 500, resulting in a monthly fee of approximately AED 41.66.
4. How do you pay the housing fee?
The housing fee is automatically added to your monthly DEWA bill, which itemizes the housing fee alongside other charges for water, electricity, and sewerage. This integration simplifies the process, ensuring that you don’t miss any payments.
5. How can I adjust the housing fee?
If your annual rent changes, you must inform the Dubai Municipality to adjust your housing fee accordingly. This can be done online through the municipality’s official website by submitting the necessary details and documents.
6. What should I do if I believe I’ve been overcharged?
If you believe you’ve been overcharged, it’s advisable to contact DEWA directly or use the Dubai Municipality’s online services to request a fee adjustment. Ensure all your rental agreements and property documents are up to date to avoid any miscalculations.
