ALL ABOUT THE DUBAI MUNICIPALITY HOUSING FEE

Samira Kh
UAE, UAE GUIDE
August 5, 2024
Dubai Real Estate All About The Dubai Municipality Housing Fee

Housing is a major cost for anyone residing in Dubai. Besides the obvious expense, there are some additional charges associated with the city’s homes, such as the Dubai housing fee. Here is everything you need to know about the Dubai municipality housing fee.

WHAT IS DUBAI HOUSING FEE?

The housing fee in Dubai is an annual charge for expatriates living in their dream accommodation. The Dubai Municipality charges a housing fee for its services, which is to be paid along with the Dubai Electricity and Water Authority (DEWA) monthly bill.

The Dubai Municipality housing fee for tenants and homeowners is set at 5% of the property’s annual rent and is paid in monthly instalments. For example, if you are renting one of the DAMAC Hills apartments for an annual cost of AED 50k, the municipality fee for the year would be AED 2,500. This is then split into 12 equal instalments to be paid as part of the DEWA bill.

The fee is charged for providing municipality services like cleaning, pollution reduction, food safety, opening and upkeep of recreational facilities, waste management services and burial grounds. So, irrespective of whether you are living in a budget-friendly townhouse for rent in Dubai or renting one of the swanky Palm Jumeirah apartments, you will still have to pay these municipality charges.

WHO HAS TO PAY THE FEE?

The Dubai housing fee applies to expatriates who own or rent a property in the city. UAE nationals are exempted from paying the Dubai Municipality housing fee.

If the property has been rented out, the tenant is responsible for paying the housing fee. Otherwise, the homeowner is responsible for making the housing fee payment.

HOW IS DUBAI HOUSING FEE CALCULATED?

For tenants, the housing fee in Dubai is set at 5% of the annual rent mentioned in the Ejari registration process.

For homeowners, the calculation is done through the average rental value of their property, as determined by the Real Estate Regulatory Authority (RERA).

Homeowners can use the RERA rent calculator to determine the average rent for their apartment or villa. They will then need to pay 5% of this amount as the housing fee in Dubai.

HOW DO YOU PAY THE HOUSING FEE IN DUBAI?

The annual housing fee will be part of your monthly DEWA utility bill. It’s usually broken down into 12 instalments, which you pay throughout the year.

You don’t need to manually add these charges, as the housing fee is automatically added to your utility bill system when you set up the DEWA connection for your home. Thus, when paying your DEWA bill, you will see that the charges are broken down into water, electricity, sewerage and the Dubai Municipality housing fee.

HOW CAN YOU AMEND THE HOUSING FEE DEWA?

If your landlord has reduced or increased your rent, or the average rental value of your property has changed, your DEWA housing fee will also change accordingly.

In such cases, you will need to update your residential details with the Dubai Municipality so that your DEWA bills reflect the correct fee. Updates regarding the fee can be made via the Municipality’s official website.

 

Take a look at the steps below for a fee adjustment:

  • Visit the Dubai Municipality’s official website and navigate to ‘Services’.
  • Under Individual Services, select Dubai Municipality Fees and then ‘Apply to Amend Dubai Municipality Residential Fee’.
  • Fill out the necessary details:
    • Account number
    • Premise number
    • Housing fees
    • Owner/tenant name(s)
    • Contract end date
    • Address
    • Property type
    • Area
    • Number of bedrooms
    • Email address
    • Mobile number
    • Additional info/remarks (if any)
  • Attach the required documents:
    • Title deed
    • Layout
  • You will receive an electronic receipt. There is no need to print out this receipt, as a soft copy is acceptable in case it is required at a later stage.
  • Your new residential details will be updated in the Dubai Municipality system within three working days.
  • If you have been charged extra for the housing fee, the amount will be refunded to you as DEWA credit.

 

This online service is offered thanks to the Dubai Paperless Strategy launched by H.H. Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Deputy Prime Minister and Minister of Defence of UAE. Government operations have been digitalised to save paper and encourage paperless transactions.

So, if your rent has changed recently, you know what to do. Dubai housing fee calculation shouldn’t be a problem now.

WHERE CAN YOU GET MORE INFORMATION ABOUT DEWA HOUSING FEES?

If you require more information about the Dubai Municipality housing fees for expatriates, you can contact the relevant authority at 800-900. Additionally, you can use Dubai Municipality’s WhatsApp service to access information, calculate housing fees, report incidents and initiate requests.

FAQS ABOUT DUBAI HOUSING FEES

IS THE HOUSING FEE CHARGED ONLY WHEN YOU MOVE TO A NEW PLACE?

No, the Dubai housing fee is an annual charge for expatriates living in the emirate. Whether you have recently moved into a new villa or stayed in the same apartment for several years, you will be charged a housing fee by the municipality.

HOW OFTEN WILL I BE CHARGED THE HOUSING FEE?

You will be charged 5% of your property’s rental value each year as housing fee. However, you are not required to pay the entire amount upfront. Instead, the fee will be divided into 12 instalments that you will pay along with your monthly DEWA bill.

WHO IS ELIGIBLE FOR A DUBAI MUNICIPALITY FEE EXEMPTION?

UAE nationals are exempted from paying the Dubai Municipality fee.

CAN I USE A DUBAI HOUSING FEE CALCULATOR?

There are no special Dubai housing fee calculators. For DEWA housing fee calculation for owners, you can simply calculate 5% of the property’s rental value to learn about the housing charges DEWA.

HOW IS THE DUBAI MUNICIPALITY FEE CALCULATED?

As discussed, the fee is 5% of the property’s rental value.

WHAT IS THE MUNICIPALITY FEE IN DUBAI?

Housing fees or the Municipality fee in Dubai is 5% of the property’s rental value and charged via your DEWA bill.

HOW MUCH IS THE DUBAI MUNICIPALITY FEE FOR OWNERS?

The fee percentage remains the same for owners and tenants.

HOW TO GET REFUNDS ON DUBAI MUNICIPALITY FEES?

If you have been overcharged based on previous calculations, you can apply for refunds via refundfees.dm.gov.ae.

That concludes our guide to the housing fee for expatriates in the emirate. Now you know the answer to the question, what is housing in DEWA bill. You can also have a look at our guide to the DEWA smart app, through which you can easily pay your monthly bills.

If you want to move to a new apartment or villa, you will also need to transfer your DEWA account to your new house. It’s also important to disconnect your DEWA connection in your old home to avoid problems later.

If you’re planning to rent a home, make sure to learn about these hidden rental charges in Dubai.

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