If you’re looking to rent or buy in Dubai, it is important to know all about the expenses that come along with it and any additional charges there may be tucked away on your monthly DEWA bill is the Dubai Municipality housing fee; everything you should know is right here in this guide from Property Finder.
What Is Dubai Housing Fee?
The Dubai Housing Fee, commonly referred to as the Municipality Fee in Dubai, is a mandatory charge for expatriates who rent or own residential properties within the city. This fee amounts to 5% of the property’s rental value.
For tenants, this translates to a straightforward 5% of their annual rent. Meanwhile, property owners are required to pay based on their unit’s official rental value according to the RERA Rental Index.
What Are the Charges Included in the Dubai Housing Fee?
The fee represents municipal services within the emirate of Dubai for its residents. It is not considered a tax, but rather a fee for civic services. These include food safety, security, cleanliness of the city, waste management, pollution management, parks, etc.
What is Dubai Housing Fee Payment Frequency?
The Dubai Housing Fee, applicable to expatriates in the city, is charged annually at 5% of your property’s rental value. Conveniently, you don’t have to pay this fee in a lump sum; it is split into 12 manageable monthly installments that are included in your DEWA bill for ease of payment.
How is the Dubai Housing Fees Calculated?
Whether renting an apartment or buying a villa, the housing fee is a necessary part of living in Dubai. It’s calculated as 5% of your yearly rent and paid in monthly installments. For example, if your annual rent is AED 80,000, your housing fee would be AED 4,000 for the year, which works out to approximately AED 333 per month.
How Long Has the Fee Been Applied?
It has been applied to all expats since 2011.
Who Is Exempting to Paying the Dubai Housing Fee?
All UAE nationals are exempt from paying it.
How Can You Reduce the Housing Fee in Dubai?
The reduction of the housing fee is only applicable when the overall rental value of the property has changed.
Modifications for tenants can be done when they notice a change in the rent; on the other hand, home owners can request the amendment when the rental value changes as per the RERA Rental Index.
How Can You Apply for a Change in Dubai Housing Fee?
You can apply online for this request on the official Dubai Municipality website, notifying them of the change in rent so the amendment can be done accordingly.
All you need to do is click on “Individual Services” and then “Dubai Municipality Fee.” You will need to submit documents like your DEWA bill and Ejari.
How Long Does the Request Take?
The request will be looked at and the fee modified within 3 working days.
What Happens If You Have Been Overcharged?
If you have been charged extra according to the old calculation of the housing fee on your DEWA bill, a refund will be granted with the amount in the form of DEWA credit.
Where Can You Get More Information About The Housing Fee?
You can contact the Dubai Municipality directly by calling 800 900 for any further information.
Now you know all about theMunicipality housing fee from Property Finder. No more seeing charges on your bill without knowing what they are for!
You can check properties available in Dubai for rent if you’re looking to upgrade your current home. No worries as the fee is transferred automatically when you transfer your DEWA.
