Dubai Municipality Housing Fee: Rules, Calculation & Payment

The Dubai Municipality charges housing fee from all expat residents. Here I have explained all important details about How to calculate Dubai Housing Fee, how to apply for Dubai Municipality Housing Fee Amendment or Adjustment and its step-by-step process.

Your Dubai Housing fee is included in your monthly DEWA Bill. Here I also explain how to check your Dubai housing fee in DEWA bill and how to calculate it on monthly basis.

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 Dubai Electricity and Water Authority (DEWA).

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 is must required to pay 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 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

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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.

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 Rehan 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 Rehan has to pay AED 900 as housing fee in a year.

Example 2:

Ms Mahek 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 Mahek’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 Mahek 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 Rehan 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.

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The Dubai Electricity and Water Authority will add AED 75 in the DEWA Bill of Mr Rehan every month. So, Mr Rehan 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.

Dubai Housing Fee Adjustment at www.dm.gov.ae

Kindly follow the steps given below to apply for housing fees adjustment online in Dubai.

Step 1: Go to Dubai Municipality Website

First of all, you need to open a web browser and visit the Dubai Municipality official website @www.dm.gov.ae. You can also click on this link to visit Dubai Municipality website.

Step 2: Search Housing Fee

You can see the Search Box in the center of the homepage. Just type Housing Fee in the search box and wait.

Step 3: Select Adjust Housing Fees

Check the search results and click on Adjust Housing Fees option to go to relevant service page.

Step 4: Check Service Details and Click Apply Now

On the housing fees service page, you should read the complete service details including required documents as well as terms and conditions. After reading all the details, you need to click on Apply Now button given on upper right side of the page.

Step 5: Login and Fill up the Application Form

You need to login to your Dubai Municipality (DM) Account to apply for adjusting your housing fees. Enter your Username & Password and click on Login button or click on Login with UAE PASS to sign into your account.

After login, an online form will appear on screen. Fill up the application form with required information like Tenant Name, Owner Name, Account Number, Premise Number, Address, Area, Property Type, Mobile Number, Email and other details.

Step 6: Upload a Copy of Tenancy Contract

You have to upload a copy of your tenancy contract as a proof of your house rent.

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Step 7: Submit the Application to Finish

After completing all necessary steps, you should submit the application to finish the process.

The Dubai Municipality will review your application and reply within 3 working days on your registered email and/or mobile number.

Request Approved

If your request for housing fees adjustment is approved, it will appear in your next DEWA Bill. Thereafter the housing fee will be charged based on the new rent amount.

Request Rejected

If your request for housing fees adjustment is rejected, it will show no effect in your next DEWA Bill. The housing fee will remain the same as earlier and you have to submit your request again for adjusting the housing fee at Dubai Municipality website.

Dubai Housing Fee Adjustment at DubaiNow App

The application for housing fees adjustment is also available in DubaiNow mobile app. You can go through the following steps to submit your request to adjust your housing fees in your DEWA Bill.

Get DubaiNow App for Android or iPhone

Open DubaiNow App on your mobile phone.
Login to the app.
Find and Select Housing Fees Adjust service.
Fill up the form with required details.
Upload your tenancy contract.
Submit the application to finish.
You will receive a reply from Dubai Municipality in 3 working days.

In this way, you can apply online for housing fees adjustment by visiting Dubai Municipality website or using DubaiNow app.

How to Check Housing Fee in DEWA Bill

The Dubai Municipality Housing Fee is calculated and added to your DEWA Bill. You can find and check the housing fee in your electricity and water bill on the right side. Check the picture given below to learn more about it.

Conclusion:

After reading this article, I hope that you have learned everything about Dubai Municipality Housing Fee Adjustment, Calculation, Payment and other things.

The expat residents are liable to pay housing fee to Dubai Municipality. The housing fee is divided in 12 installments and added to the DEWA bill every month.

In case you still have a doubt, you can ask your queries in the comment section.

FAQs

Do all tenants need to pay housing fee in Dubai?

No, only expat tenants and property owners need to pay housing fee in Dubai.

Can expats buy a property in Dubai?

Yes, expats can buy a property in several designated areas of Dubai but they have to pay the housing fee. The housing fee is 5% of estimated annual rent and it will be added to the expat’s DEWA Bill.

How much is Dubai Municipality Housing Fee?

The Dubai Municipality Housing Fee is 5% of the annual rent or estimated annual rent.

How do I reduce housing fee in Dubai?

You cannot reduce housing fee in Dubai unless the rent amount is decreased. The housing fee is 5% of the annual rent, so it can get reduced only if the rent is decreased.

Do UAE Nationals need to pay housing fee?

No, the UAE Nationals need not to pay housing fee as they are exempted from it.

Why does Dubai Municipality take housing fee?

The Dubai Municipality takes housing fee from expats for infrastructure, public cleaning service, air quality & food control, heath & environmental services and other important aspects of routine life.