All About the Dubai Municipality Housing Fee 2024

Many dream of owning a house or living an extravagant lifestyle in Dubai. No wonder the emirate catches the heart of expatriates with its ambience, pleasing culture, and outstanding living standards.

People say that our dreams come with a price, and the same applies to housing plans in Dubai, UAE.  If you are new to the emirate or planning to move there, you should know about Dubai Municipality’s housing fees for owners and renters. This is an unknown fact for many who own a house in Dubai. However, it is always wise to research well before you execute the plan to avoid uncertainties. So, let us learn together about the concepts and exemptions of Dubai Municipality Housing Fee 2024.

What is Dubai Municipality Housing Fee 2024?

Dubai Municipality Housing Duty or Fee is the additional charge just like the water supply and electricity bill to be paid by every expatriate. This is an annual payment that is applicable for not just renters but homeowners too. Dubai Municipality charges for each of its facilities and services such as cleanliness, food safety, waste management, and more. Similarly, the Dubai Municipality Housing Fee 2024 (DEWA Bill) framework works at a 5% rate. Although, expatriates have to pay this annual charge monthly that authorities impose on them.

• Who Are the Payers of Dubai Municipality Housing Fee? 

The authorities impose the Dubai Municipality Housing Fee on each homeowner who possesses property in UAE. The Emirates is exceptional with such charges. In the case of landlords, they are only responsible for paying it if the residents use the property. Or else, the Dubai Municipality Housing Fee for owners also gives the freedom to transfer the responsibility to their tenants through renting. 

• Who is Exempted from Paying the Dubai Municipal Housing Fee?

The following category of residents/ properties are exempt from paying the housing fee in Dubai:

1. UAE Nationals
2. Commercial Properties
3. Consulates and Diplomatic Missions
4. Emirates General Petroleum Corporation
5. The Central Bank

• How is the Housing Fee Calculated in Dubai?

The authorities decide the Dubai Municipality Fee on two different bases for renters and homeowners. In the case of landlords, the governing bodies calculate the rate based on the average rental cost of the property, as determined by RERA (Real Estate Regulatory Authority). The authorities can use this mechanism to determine the rental price of properties offered for rental purposes. For tenants, however, DM has fixed the rate at 5%, with monthly payments that the tenant has to pay exclusively.

Noticeably, if your rent increases, the rental value of the property also increases with the rise in the housing fee. That means the change in valuation will impact and revise your housing charges in the UAE.

• Case 1: Mr. Aatish’s rental apartment

Say Mr. Aatish lives in a rental apartment in Dubai, paying a monthly rent of AED 2,000. The calculation of Mr Aatish’s municipality housing fee will be 5% of the annual value of this rent.

• • Mr Aatish’s annual rent: 2,000 x 12 = AED 24,000
  • Mr Aatish’s housing fee: 5% of AED 24,000 = AED 1,200

Thus, Mr Aatish will pay an annual housing fee of AED 1,200, payable in monthly instalments of AED 100 (1,200/12).

• Case 2: Ms Zaira

Ms Zaira owns a lavish apartment in Dubai and pays no rent. Thus, the authorities will calculate her housing fee based on her apartment’s estimated annual rental value. Let us say the estimated monthly rent of Ms Zaira’s flat is AED 3,000.

• • Ms Zair’s annual estimated rent: 3,000 x 12 = AED 36,000
  • Ms Zaira’s housing fee: 5% of AED 36,000 = AED 1,800

Ms Zaira will have to pay an annual housing fee of AED 1,800 for her flat, divided into instalments of AED 150 per month (1,800/12).

How to Pay the Dubai Housing Fee?

Expats living in Dubai do not need to make any additional effort to pay the Dubai municipal housing fee separately. The annual fee is divided into 12 instalments and explicitly mentioned in a bill. It will be included in the overall monthly charges payable by the resident. For instance, Mr. Rehan’s monthly housing fee is AED 100, while his actual monthly consumption cost is AED 200. Thus, Mr Rehan’s total monthly bill would be AED 300 (AED 200 for monthly consumption + AED 100 monthly housing fee).

So, the next time you pay your DEWA bill using your mobile phone or via a payment kiosk, you can be confident that the housing fee will be paid simultaneously.

• Ways to Adjust Dubai Municipality Housing Fee

There is a solution to every problem and hence, even the housing rate also gets adjusted with some simple steps. For this easy-to-navigate service, the credit goes to the Dubai Paperless Strategy where the digital era has created a new pathway for even non-technical users. It was initially launched by H.H Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, the chairman of the Dubai Executive Council and the crown prince of Dubai. So, if you are an expatriate whose rent has been revised, the needful steps are down below: 

• • Go to the Dubai Municipality’s official portal
  • Search for the tab ‘Services’ 
  • Select the sub-category “Dubai Municipality Fees” in Individual Services.
  • Click on the ‘Apply to Amend Dubai Municipality Residential Fee’ tab.
  • Fill in the Important Details Asked:

1. 1. 1. 1. Account number
         2. Premise number
         3. Housing fees
         4. Owner/tenant name(s)
         5. Contract End Date
         6. Address
         7. Property Type
         8. Area
         9. Number of Bedrooms
         10. Email Address
         11. Mobile Number
         12. Additional info/remarks (if any)

• • Attach the Required Documents

1. 1. 1. 1. Title Deed
         2. Layout

• • After the above documents are submitted, a digital receipt will be generated. It is not significant to have a hard copy of the same, but one may take it only in case of any further processing
  • Your revised residential details will be updated in the Dubai Municipality cloud within 3 working days.
  • If you were charged more for the Dubai Municipality Housing Fee, you will receive the amount back as DEWA credits.

• DubaiNow App
  

  Expats can also adjust their housing fees via the DubaiNow App. Once the application is submitted, the municipality contacts the applicant within 3 working days. Follow these simple steps to adjust housing fees via the DubaiNow app: 

  1. Download the DubaiNow App via the Google Play Store or Apple App Store.
  2. Login using your credentials.
  3. Find and choose the Housing Fees Adjust service.
  4. Provide the required details in the form.
  5. Attach the tenancy contract. 
  6. Submit your application. 

Why Do Expats Have to Pay a Housing Fee?

The Dubai Municipality Housing Fee is used for public expenditure. The authorities collect the tax and use it to develop the city’s infrastructure, offer smooth services and provide a high standard of living. Expats in Dubai have to pay housing fees for:

• Health Facilities
• Environmental Sustainability
• Waste Management
• Public Safety
• Road and Transport Infrastructure 
• Community Facilities
• Other Services

What is DEWA Account in Housing? 

The Dubai Municipality monitors housing and services through each resident’s DEWA account. This account allows the person to receive a DEWA bill each month of the year. It contains all the details of payments they abide by for that particular month, including the Dubai Municipality Housing Fee. This is a verified method of knowing which expatriates stay where. If the person decides to move to another place in the emirate, they must update their account with the latest address. They will then send the report as a bill with a payment deadline.

The rate does not change with the change in property. However, the amount payable may vary according to the rent (for tenants) or property value (for homeowners). Therefore, it is advisable to update the account with the new place and deactivate or delete the old one to avoid any further confusion.

• What are Dubai Municipality Charges in the DEWA bill?

DEWA bill is a personalised guide to your Dubai Municipality Housing Fee. The Dubai Municipality Housing Fee Dewa can help you configure the charges according to your rent and evaluation. This is just 5% of the amount paid for 12 months of the year.

Can a Tenant Transfer the Housing Fee Duty to the Owner?

As an owner, they may give the responsibility to their tenants to pay the Dubai Municipality Housing Fee 2024. So, for example, an owner has two properties, one of which they give for rental purposes. In such a situation, the owner may clear their responsibility by asking the renters to pay the housing bill. It is a completely legal method and the law even deems it common and genuine. However, this offer is closed for tenants to step back and cannot implement the same idea as the owner, which is dominatingly significant with the renters. Hence, the renter must pay the DEWA Bill and the housing fee. But as we have mentioned, the easiest method to apply for your DEWA Account is to make a paperless payment from anywhere directly through their accounts. The transaction is completely safe and even ensures no extra payments, making the refund process easy.

In Conclusion

Dubai Municipality has added many things to the checklist when you buy a home. One such aspect of care is the housing fee. However, it is easy to pay the charges applied by the Dubai Municipality to expatriates. It can be done through digital platforms, where the deduction will occur directly from the expatriate’s bank account to the Dubai Government. Hence, the only requirement is acknowledging the rate if you have an updated rent price. Otherwise, the homeowners who stay at their property will pay the housing fee at the determined rate on their property

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