5% Dubai Municipality Fee if you rent and/or own property in Dubai
Ok, so here is the inside scoop about the DM (Dubai Municipality) 5% property tax (a.k.a. Housing Fee). If you rented a property after January 1st 2005 chances are you had to visit DEWA (Dubai Electricity and Water Authority) to get connected for water and electricity. Once you make that trip your residential contract gets "captured" in both the Dubai Municipality as well as DEWA systems and you will start getting your 5% of the residential contract value on a monthly basis as part of your DEWA bill. This charge will be displayed on the bill in a separate column titled "Housing Fees". Now, if you have not moved out from your apartment before January 1st, 2005 then DON'T because presently you should not be paying any housing fee but once you move out and into a new residence you will start receiving the fee on a monthly basis.
However, if you own a property here in Dubai then your housing fee is calculated as 5% of the 10% of your property market value. For example, if you bought a 2,000,000 Dirham property then 10% of that is 200,000 Dirhams and 5% is 10,000 Dirhams as a housing fee paid in 12 month period.
Here are additional links about the housing fee:
High time to pay housing fee
Housing fees to be paid with utility bills
Housing fee 'is a big burden'
33 comments:
I as a resident in Dubai, feel extremely exposed to the 5% MF on DEWA and hurt as there are many occupants who stay in old bldg or on sharing basis or also in govt bldgs(meant actually for the not so well off but being occupied by people who can afford to travel overseas 4 times a year, own 4 vehicles per flat and still are not considered to move into flats of their income wise and expect those who cannot manage to live in expenses flats. I hope this issue is taken up by Muncipality to see some reason on the people who occupy these govt bldgs. I also wish DEWA would go over the bills that have a 5% tax and see that most of them have thier consumption chgs less than half of the tax and those who have high consumption are those who are sharing flats and living free of cost. I hope some action is taken in this regard. Thank You
Housing fee should be charged based on the services being rendered by DM to the building or community. This should be evaluated and charged to everyone in Dubai and not just few people.How can housing fee be charged based on house rent. The 0.5% charge on the purchase value of the property for free hold property owners is not logical. The property prices boomed at one time and then crashed as is the case now.DM seems to be promoting rental properties to freehold. I spoke to the customer care at DM and the answer to my polite question was " This is Dubai and you cannot change the laws......"
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I donot understand how they calculate. I am getting it form 225 to 250 per month. Different every month.
Whereas, if i calculate on my rent at 5%, it should be 175 per month.
For me they charged around 17% of my contract value. I don't understand the logic of DM
I hope DM will adjust the overcharged amount in my future bills.
Thank you.
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Real estate fee should be energized depending on the solutions being made by DM to the developing or group. This should be analyzed and energized to everyone in Dubai and not just few people.How can housing fee be energized according to house lease. The 0.5% cost on the purchase value of the residence for free carry homeowners is not sensible. The residence costs multiplied at one time and then gone down as is the situation now.DM seems to be advertising lease qualities to perpetual. I talked to the client service at DM and the response to my courteous concern was " This is Dubai and you cannot modify the regulations.
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What if you have moved recently like me to Dubai, july 2012, but have never received this in your Dewa bill up to date, is it my responsibility to raise the issue with DM, with DEWA, what do you recommend to do?
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Lodging expense ought to be charged taking into account the administrations being rendered by DM to the building or group. This ought to be assessed and charged to everybody in Dubai and not only few people.How can lodging expense be charged in view of house rent. The 0.5% charge on the buy estimation of the property with the expectation of complimentary hold property proprietors is not coherent. The property costs blasted at one time and after that smashed similar to the case now.DM is by all accounts elevating investment properties to freehold. I identifies with the client care at DM and the solution for my obliging inquiry was " This is Dubai and you can't change the laws jumeirah park property
Land charge ought to be stimulated relying upon the arrangements being made by DM to the creating or gathering. This ought to be dissected and empowered to everybody in Dubai and not only few people.How can lodging charge be stimulated by lease. The 0.5% expense on the buy estimation of the living arrangement with the expectation of complimentary convey mortgage holders is not sensible. The living arrangement expenses duplicated at one time and afterward gone down similar to the circumstance now. DM is by all accounts publicizing lease qualities to ceaseless. I conversed with the customer administration at DM and the reaction to my affable concern was " This is Dubai and you can't alter the regulations. dubai property
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