The Emiratis and the people living in Dubai, the crown jewel of the world feel immense pride living in their homeland. Moreover, the number of people looking for accommodation in Dubai is increasing with each day. Dubai’s real estate has significantly contributed to the growth of the UAE. The taxation system of Dubai keeps the economy in proportion and Dubai housing fee is an integral component of the same. Through this blog, we dive deeper into how exactly Dubai’s housing fee functions.
What is the Dubai Housing Fee?
Dubai housing fee is an annual accommodation amount, charged from immigrants for staying in the Emirates. This fee is charged by the Municipality of Dubai in lieu of the services rendered. It is required to be paid in addition to the DEWA (Dubai Electricity and Water Authority) bill.
The rate of Dubai’s housing fee is set at 5% on the amount of the annual rent paid for the property; further paid in the form of monthly instalments. The use of the amount collected from the Dubai housing fee is done for rendering services which include ensuring the safety of food, reducing pollution, cleanliness, hygiene, waste management and sanitation facilities.
It doesn’t matter if you’re staying at a cost-friendly house or the world-famous Palm Jumeirah apartments, it is mandatory to pay the Dubai housing fee to the respective municipality.
Calculating Dubai’s Housing Fee
The Dubai housing fee has been set at a rate of 5% for the tenants which is paid on yearly basis. This is mentioned in the Ejari Tenancy Contract.
As per RERA (Real Estate Rental Authority), the Dubai housing fee is calculated on the basis of the property’s average rental worth. The inhabitants can calculate their average rent with the help of the RERA Rent Calculator, 5% of which forms the Dubai housing fee.
Paying Dubai’s Housing Fee
Dubai’s housing fee is calculated on yearly basis and is a significant element of the Dubai Electricity and Water Authority (DEWA) bill. Divided into 12 instalments, it is paid by the individual throughout the year.
The interesting part of this fee is that it isn’t added manually by the individual as it gets automatically appended to the utility bill system through the DEWA system for accommodation. Therefore, while paying the Dubai Water and Electricity Authority (DEWA) bill, the amount is clearly divided into electricity, sewage, water and the Dubai Municipality housing fee.
Who is Required to Pay the Dubai Housing Fee?
The Dubai Municipality Housing Fee is charged by the Government of the United Arab Emirates (UAE) from the immigrants who have purchased an accommodation or are renting houses in Dubai.
If the property has been rented out, the homeowner is liable for paying the housing amount, charged by the UAE government. The citizens of the UAE are exempted from paying the Dubai Housing fee.
How to Amend Dubai’s Housing Fee?
In case your landlord has made changes in your rental charge of the property, then the amount of the housing fee will be changed in direct proportion.
In this case, an individual is required to update his residential details with the Municipality of Dubai to ensure that the Dubai Electricity and Water Authority (DEWA) bills portray the right amount of fees charged.
The following steps will enable you to adjust the Dubai Municipality housing fee:
- Go to the official website of Dubai’s Municipality and click on the ‘Services’ option on the home page.
- Under the section of ‘Individual Services’ select Dubai Municipality fees, followed by ‘Apply to Amend Dubai Municipality Residential Fee’ option.
- Fill in the required details and then attach the necessary documents as per the requirement. For tenants, the latest DEWA bill along with a new Fjari bill is needed.
- An electronic receipt will be generated. In later stages this receipt will be needed wherein you don’t have to derive a hard copy of it, a soft is completely acceptable.
- Within the upcoming three working days, the new residential details will be updated automatically in the system of Dubai’s Municipality.
- In a scenario where you’ve been charged a surplus or extra amount in regards with the housing fee, the net amount will be automatically refunded to you in the form of DEWA credit.
The credit for this online service being rendered to people goes to Dubai Paperless Strategy.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, launched this eco-friendly initiative with the Chairman of Dubai Executive Council. This initiative was introduced to save paper along with promoting transactions that are paperless.
How to Get a Dubai Municipality Housing Fee Refund?
If an individual believes that he has been overcharged in the name of Dubai’s housing fee, he immediately needs to report to Dubai Electricity and Water Authority (DEWA), providing them with an application of his query. This application will be checked by the Municipality of Dubai and updated accordingly.
The individual must include his rent contract and the title deed along with other required documents. Any surplus amount paid will be credited to the individual’s bank account if the amount is found to be inaccurate. In a scenario where the calculated amount is found to be correct, the individual will continue paying the same fee every month.
In case if the property remains unoccupied, the policy doesn’t change.
Emirates 24/7 have clearly stated that if an accommodation remains unoccupied, but is affiliated with the DEWA system, the owner of the property must pay the respective housing fee.
It has been made very clear by Abdulla Hashim Abdulghafoor, the former Head of Housing & Marketing Fees at the Municipality of Dubai, that the only condition for charging the Dubai Municipality housing fee is having a DEWA (Dubai Electricity and Water Authority) connection.
“Whether an apartment is rented out or remains vacant, one still has to pay the housing fee as long as he has a Dewa connection. There is no exemption,” said Abdulla Hashim Abdulghafoor.
Frequently Asked Questions (FAQs)
No, Dubai Municipality will charge you a housing fee irrespective of the time span of your house. So, whether you have been living in an apartment for 7 years or recently have bought an apartment will have no effect on your housing fee. As it is the annual charge on expatriates living abroad.
The Dubai housing fee is expected to be paid annually by all the citizens in Dubai. The instalments are made by dividing it into 12 months under the Dubai Electricity and Water Authority bill.
The housing fee has been applied by all the citizens since the start of 2011.
An individual can only manage to reduce their payments of housing fees when their overall value of property gets changed. A change in the payments can be done only when the tenant sees a change in their rent amount. Whereas a homeowner may change the same when they see their rental value changing according to the RERA Rental Index.
Any kind of modification or changes can be seen in your housing fee in three working days.
An individual needs to pay 5% of their rental property value every year as a part of their housing fee. Although it is not important for tenants to pay the amount in one go, rather the fee gets divided into twelve instalments that are to be paid with their monthly Dubai Electricity and Water Authority bill. A tenant if want to can also use the DEWA app to make payments for their monthly bills. Also, note that in case you are planning to move into a new house or a villa, then you are supposed to transfer your backdate Dubai electricity and water authority account in the name of your new house address. In addition, it is also important for you to disconnect your old connection with the Dubai electricity and water authority to avoid any kinds of confusion later.
In case you get an overcharged bill on your old house, then the authority will make a refund for the same in your Dubai electricity and water authority account which will be termed as DEWA credit. Is the housing fee restricted for payment by an individual at the time of his transfer to a new place?
How often does an individual is expected to pay the Dubai Housing Fee?
How long has been the housing fee getting applied?
How can one reduce their payment of housing fees?
How long does the modification or change in the housing fee take?
How often does an individual get charged for housing fees?
What if I get an overcharged bill?
