Dubai Municipality 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.

Understanding the Dubai Municipality Housing Fee

Expats in Dubai have the opportunity to rent or buy properties in various freehold areas, each catering to different budgets and lifestyles. However, it’s important to consider additional costs, such as the Dubai Municipality Housing Fee, when planning your budget. This fee, collected through your monthly DEWA bill, supports the city’s municipal services and must be paid in installments.

What is the Dubai Municipality Housing Fee?

The Dubai Municipality Housing Fee is an annual charge imposed by the municipality and collected via DEWA. This fee supports services like security, cleanliness, food safety, pollution and waste management, and the maintenance of public parks. Whether you’re renting an apartment or buying a villa, this fee is a mandatory part of living in Dubai. The fee is set at 5% of the property’s annual rent, divided into monthly installments. For example, if your annual rent is AED 50,000, your housing fee will be AED 2,500 per year, or roughly AED 208 per month.

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. It’s important to note that UAE nationals are exempt from this fee, making it applicable only to expatriates.

How is the Housing Fee Calculated?

The housing fee is straightforward to calculate: it is 5% of the property’s annual rent. Here’s a simple formula to determine your monthly payment:

• Monthly Housing Fee = (Annual Rent × 0.05) / 12

For instance, if your annual rent is AED 10,000:

• Annual Housing Fee = 10,000 × 0.05 = AED 500
• Monthly Housing Fee = 500 / 12 ≈ AED 41.66

For homeowners, the fee is calculated based on the average rental value of the property as determined by the Real Estate Regulatory Authority (RERA). Homeowners can use the RERA rent calculator to determine the average rent for their property and then apply the 5% fee accordingly.

How Do You Pay the Housing Fee?

The housing fee is automatically added to your monthly DEWA bill, so there’s no need for separate payments. Your DEWA bill will itemize the housing fee alongside charges for water, electricity, and sewerage. This integration simplifies the process, ensuring that you don’t miss any payments and that the fee is distributed evenly throughout the year.

Adjusting 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. Here are the steps:

1. Visit the Dubai Municipality’s official website.
2. Navigate to ‘Individual Services’ under the ‘Services’ section.
3. Select ‘Dubai Municipality Housing Fee’ and then ‘Apply to Amend Dubai Municipality Housing Fee’.
4. Fill in the required details, including account number, premise number, new rent details, and attach necessary documents such as the title deed and property layout.
5. Submit the form. Your fee will be adjusted in your DEWA bill within three working days. If you’ve been overcharged, the excess amount will be credited to your DEWA account.

Common Concerns and Solutions

It’s not uncommon for expatriates to be surprised by the housing fee appearing on their DEWA bill. Many new residents are unaware of this additional charge, leading to confusion when the first bill arrives. The fee is calculated as 5% of your annual rent divided by 12, and it applies to all expat tenants and property owners. If you haven’t been charged previously, it could be due to an administrative delay, and backdated fees might be applied to your bill.

In case of discrepancies or 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.

Moving Residences and Housing Fee

The Dubai Municipality Housing Fee is an annual charge, meaning it applies throughout the year regardless of whether you move residences. If you relocate within the same year, you’ll still be required to pay the fee based on your new rental agreement. This ensures continuity in municipal services across the city.

How Can You Amend the Housing Fee?

If there has been a change in your rent—whether an increase or a decrease—or if the average rental value of your property has changed, you will need to update this information with the Dubai Municipality to ensure your DEWA bill reflects the correct housing fee. Here’s a step-by-step guide to amend your housing fee:

1. Visit the Official Website: Go to the Dubai Municipality’s official website.
2. Navigate to Services: Under the ‘Services’ section, choose ‘Individual Services’ and then select ‘Dubai Municipality Fees’.
3. Apply for Amendment: Click on ‘Apply to Amend Dubai Municipality Residential Fee’.
4. Fill in Necessary Details: Provide the following information:
   • Account number
   • Premise number
   • Current housing fee
   • Owner/tenant name(s)
   • Contract end date
   • Address
   • Property type
   • Area
   • Number of bedrooms
   • Email address
   • Mobile number
   • Additional info/remarks (if any)
5. Attach Required Documents: Upload the title deed and property layout.
6. Receive Electronic Receipt: After submitting the form, you will receive an electronic receipt. There’s no need to print this receipt, as a soft copy will suffice if needed later.

Your updated residential details will be processed within three working days. If you’ve been overcharged previously, the excess amount will be credited to your DEWA account. This service is part of the Dubai Paperless Strategy, launched by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, to promote digital transactions and reduce paper usage. So, if there has been a recent change in your rent, make sure to update your details to reflect the correct housing fee. This process ensures that your DEWA bills are accurate and up-to-date.

Where to Get More Information

For additional information regarding Dubai Municipality housing fees, you can contact the relevant authority at 800-900. Additionally, the Dubai Municipality’s WhatsApp service is available for information, fee calculations, reporting issues, and making requests. This service offers a convenient way to handle inquiries and ensure all your housing fee-related concerns are addressed efficiently.

What is Dubai Municipality Housing Fee?

The Dubai Municipality Housing Fee is a service fee charged by the Municipal Department from foreign citizens (expats) living in Dubai. Whether an expat lives on rent/lease or in his/her own house/flat in Dubai, the expat has to pay the housing fee as per rules. The Housing Fee is charged by Dubai Municipality and it is collected by

. The housing fee is charged as per the Dubai Revenues Law of 1962. So, there is no way to avoid the housing fee, each and every expat worker in Dubai must pay the Dubai Municipality Housing Fee time to time.

Why Do Expats Pay Housing Fee?

The housing fee is applicable on expats who live in Dubai but the expats do not know the reason. I talked to some expats in Dubai and they did not know why Dubai Municipality is taking housing fee from them. The Dubai Municipality takes the housing fee for the following services:

• Public Cleaning Services
• Infrastructure
• Health Services
• Environmental Services
• Air Quality and Food Control
• Other Important Aspects of Daily Life

Who is Exempted from Dubai Housing Fee?

The Dubai Municipality charges housing fee from all tenants and property owners in Dubai except the exempted categories. Here I provide the list of people/entities who are exempted from housing fee.

• UAE Citizens or UAE Nationals
• Commercial Units
• Consulates and Consular Missions
• Emirates General Petroleum Corporation
• The Central Bank

These five categories are not required to pay the housing fee. All other categories of people have to pay the housing fee as per rules.

Housing Fee Percentage [5%]

According to rules, Dubai Municipality Housing Fee is 5 percent of the annual rent or the estimated annual rent.

How to Calculate Dubai Housing Fee

You can calculate the housing fee with help of the actual annual rent or estimated annual rent. If an expat lives on rent or lease, you need to calculate the housing fee based on actual annual rent paid by the expat to the property owner.

OR

If an expat owns a property (flat/house) in Dubai and s/he lives there, the expat does not pay any rent. In these circumstances, you can calculate the housing fee based on estimated annual rent.

Example 1:

• Mr Muhamad is an expat who lives on rent in Dubai. The rent is AED 1500 per month. So, the annual rent would be AED 1500 x 12 = AED 18000. The housing fee is 5 percent of annual rent i.e. AED 18000 x 5/100 = AED 900. So, Mr Muhamad has to pay AED 900 as housing fee in a year.

Example 2:

• Ms Meena is an expat who lives in her own flat in Dubai. She does not pay any rent but it is important to know the estimated annual rent to calculate the housing fee. The estimated rent for Ms Meena’s flat is AED 2000 per month which would be AED 2000 x 12 = AED 24000 per annum. So, the estimated annual rent is AED 24000 and the housing fee is 5 percent i.e. AED 24000 x 5/100 = AED 1200. So, Ms Meena has to pay AED 1200 as housing fee in a year. This is a year-wise calculation, but you must pay Dubai housing fee monthly.

How to Pay Dubai Housing Fee

All expats living in Dubai are liable to pay the housing fee but they cannot pay it separately. The Dubai Municipality Housing Fee is added to the DEWA Bill and it is clearly mentioned as Housing Fee in the utility bill. The Dubai Electricity and Water Authority (DEWA) provides water and electricity in entire Dubai. In return, the DEWA takes charges from the residents based on their water and electricity consumption. In addition, the DEWA Authority calculates and adds the housing fee to the monthly utility bill of respective expat residents.

For example:

The annual rent of Mr Muhamad is AED 18000, so the housing fee would be AED 18000 x 5/100 = AED 900 per annum. The annual housing fee is AED 900 but the DEWA Bill is generated on monthly basis. So, the housing fee is to be divided in 12 installments as AED 900/12 = AED 75. The Dubai Electricity and Water Authority will add AED 75 in the DEWA Bill of Mr Muhamad every month. So, Mr Muhamad  is liable to pay AED 75 as housing fee with the payment of his DEWA Bill on monthly basis.

Dubai Municipality Housing Fee Adjustment

The housing fee is 5% of the annual rent. So, the housing fee is increased if the rent is increased and it is decreased if the rent is decreased. In case of increase or decrease in your house rent, you must inform the Dubai Municipal Department. You need to apply for housing fees adjustment at Dubai Municipality website (www.dm.gov.ae) or through DubaiNow mobile app. The Dubai Municipality will review your request and adjust the housing fee according to the increased/decreased rent in your new tenancy contract.