The housing fee Dubai Municipality charges is 5% of a home's annual rental value, collected in 12 monthly instalments on the Dubai Electricity and Water Authority (DEWA) bill. Tenants pay 5% of the yearly rent in their Ejari-registered tenancy contract. Owners who live in their own home pay 5% of the estimated annual rent for that home in the Real Estate Regulatory Agency (RERA) rental index, not a share of the price. UAE nationals are exempt, commercial units aren't charged, and Dubai Municipality (DM) corrects a wrong amount free of charge.
- Tenants: on AED 75,000 a year, AED 3,750, or AED 312.50 a month.
- Owners living in their home: the often-quoted "0.5% of the property value" isn't in DM's published rules.
- On the bill: spread over 12 bills, with no VAT on it.
- Wrong amount: apply to DM, not DEWA; overcharges come back as DEWA credit.
What is the housing fee in Dubai?
The housing fee is a Dubai Municipality charge on homes lived in by residents who are not UAE nationals, whether they rent or own. DM describes it as a sovereign fee for public services such as parks, beaches, public health and food safety, levied under the Revenue Law of 1962 as amended. DEWA collects it for DM through your monthly bill.
It covers residential units and labour accommodation. Commercial premises aren't charged: if the fee shows up on an office or shop account because DEWA has the account classed as residential, DEWA has to change the account type first, and DM can then amend the fee. Besides UAE nationals, DM exempts consulates on the basis of reciprocity and anyone exempted by an official government decision.
Who pays the housing fee Dubai Municipality charges?
Whoever lives in the home, through the DEWA account for it. A tenant pays on the rent in the tenancy contract, and the Dubai Land Department (DLD) lists the 5% as the tenant's cost in its FAQ, separate from service charges, which fall on the landlord. An owner who lives in the home pays on its estimated rental value instead.
A landlord doesn't normally pay the fee on a let home, because the tenant's Ejari registration opens a DEWA account in the tenant's name, so it isn't usually one of the running costs in a rental yield sum. The exceptions follow the account: if a landlord keeps DEWA in their own name, as on some bills-included lets, the fee is on the landlord's bill and the contract decides who bears it. Tenants in the Dubai International Financial Centre (DIFC), whose contracts are issued by DIFC, are charged the same way.
How is the housing fee calculated?
Multiply the annual rental value by 5%, then divide by 12 for the monthly charge. For a tenant the rental value is the yearly rent in the valid Ejari contract. For an owner who lives in the home it is the estimated annual rent for that home in RERA's rental index, which is updated every year. The price paid for the home plays no part.
| Who | Fee based on | Rate | Example | On each monthly bill |
|---|---|---|---|---|
| Tenant | Annual rent in the valid Ejari tenancy contract | 5% | AED 75,000 rent: AED 3,750 a year | AED 312.50 |
| Owner living in the home | Estimated annual rent for the home in RERA's rental index | 5% | AED 90,000 index rent: AED 4,500 a year | AED 375.00 |
| Owner of labour accommodation | Estimated annual rent in RERA's index, by its approved classification | 5% | Set by the index | Yearly fee ÷ 12 |
| UAE national | Exempt | None | None | None |
| Commercial unit | Not charged | None | None | None |
A worked example for a tenant on AED 75,000 a year: 75,000 × 5% = AED 3,750 a year, and 3,750 ÷ 12 = AED 312.50 on each monthly bill. The same sum at other rents:
| Annual rent in Ejari | Housing fee a year | On each monthly bill |
|---|---|---|
| AED 50,000 | AED 2,500 | AED 208.33 |
| AED 75,000 | AED 3,750 | AED 312.50 |
| AED 120,000 | AED 6,000 | AED 500.00 |
| AED 200,000 | AED 10,000 | AED 833.33 |
Is it 0.5% of the property value for owners?
You will often read that owners pay 0.5% of the purchase price, and some news reports have said so. DM's current service terms don't use that figure: they set an owner's fee at 5% of the index's estimated annual rent. The two only match when a year's rent is exactly 10% of the price. Take a flat bought for AED 1,500,000 whose index rent is AED 90,000 (both figures are illustrative): DM's formula gives AED 4,500 a year, about 0.3% of the price, where 0.5% would be AED 7,500.
The index estimate rests on the details DM holds for the home: property type, area, building name for a flat or community for a villa, and number of rooms. If the figure looks high, check those first. Our guide to the RERA rent increase calculator shows how to look up a home in DLD's rental index.
How does the housing fee appear on your DEWA bill?
As a Dubai Municipality charge next to your electricity and water, one twelfth of the yearly fee on each monthly bill. DEWA's own bill guide describes it as 5% of your annual rent paid over 12 months, and DEWA's VAT notes say VAT doesn't apply to the housing fee, which it collects on DM's behalf.
DM counts the fee from the start date of the tenancy contract, whatever day of the month that is, to the contract's expiry date. If a home has two DEWA meters because a second was added for technical reasons, such as a higher electrical load, DM charges the fee on one account only. The sewerage charge on the same bill is a different DM fee, based on your water use.
The 240 check Multiply the monthly housing fee by 240 (12 bills ÷ 5%) to see the annual rent DM is using. AED 312.50 × 240 = AED 75,000. If the answer doesn't match your Ejari contract, or the index rent for an owner, ask DM to correct it.
How does Ejari link your rent to the housing fee?
Ejari feeds DEWA. When a tenancy contract is registered in Ejari, DEWA receives its details, opens the tenant's account and asks for the security deposit. When the contract is renewed in Ejari, the annual rent in DEWA's system updates as well, and the housing fee with it, so a renewal no longer means a visit to DM.
Because DM bases the fee on the rent stated in the valid tenancy contract, the registered figure is the one that counts. A renewal at a higher rent raises the fee by 5% of the increase: AED 4,000 more rent adds AED 200 a year, about AED 16.67 a month. Paying in instalments under DLD's Flexi Rent initiative doesn't change it either, because the fee is worked out on the annual rent and spread over 12 bills however often you pay. Our Ejari guide covers registration and renewal.
What if your DEWA bill shows the wrong rent?
Ask Dubai Municipality, not DEWA. DM's Adjust Housing Fees service runs on its website, the DM app and the Dubai Now app, and you sign in with UAE Pass or a DM account. It is free, DM replies within three working days by email and text message, and any overcharge it confirms is credited to your DEWA account.
- Work out the rent DM is using with the 240 check above.
- Check your Ejari contract shows the right annual rent and dates. If the registration itself is wrong, ask your landlord or property manager to correct it first.
- Apply to DM. Tenants enter their DEWA account number and Ejari certificate number; DIFC tenants attach a copy of their DIFC tenancy contract. Owners enter the DEWA account number, property type, area, building or community, and number of rooms. Nothing else needs uploading.
- Watch your DEWA account for the adjustment once DM has replied.
DM only changes the fee when it finds an error in the calculation or the data behind it; if the bill matches its method, nothing changes. A fee charged on a second meter in the same home is corrected through the same service in about five working days. For a delayed request, DM gives HousingFees@dm.gov.ae as the contact.
What happens to the housing fee when you move out?
It ends with your DEWA account. DM charges the fee while the account is active, up to the contract's expiry date, so book DEWA's move-out for the day you hand back the keys. DEWA sends the final bill within 24 working hours of disconnection and sets it against your deposit. If it charges housing fee for an empty home, ask DM to correct it.
If you leave early by agreement, check the last bills against the dates you actually lived there. A new Dubai home starts a new fee on the new rent once its Ejari is registered. Our guide to Ejari cancellation covers the whole move-out sequence, from notice to deposits.
Do vacant homes and holiday homes pay the housing fee?
Vacant homes do while their DEWA account is active. DM says the fee starts when the account is activated, and the way to avoid it on an unused property is to deactivate or close the account. DM's published rules don't mention holiday homes, so an owner letting short-term should ask DM how the unit is treated rather than assume.
For a landlord between tenants, a DEWA account left open in your name for viewings or maintenance can carry the fee, so close it if the home will stand empty for long. For a home let under a Department of Economy and Tourism (DET) holiday home permit, ask DM (HousingFees@dm.gov.ae) how the account is classed: its page says only that commercial premises aren't charged and residential ones are while the DEWA account is active.
Frequently asked questions
How much is the housing fee in Dubai?
5% of the home's annual rental value, paid in 12 monthly instalments on the DEWA bill. Tenants pay on the annual rent in their Ejari contract; owners who live in their home pay on the estimated annual rent in RERA's rental index.
How is the housing fee calculated for owners?
At 5% of the estimated annual rent for the home in RERA's rental index, which is updated yearly. Dubai Municipality's terms don't use 0.5% of the purchase price.
Do landlords pay the housing fee in Dubai?
Not normally on a let home: the fee goes on the tenant's DEWA account, and DLD's FAQ lists it as the tenant's cost. An owner pays when living in the home, or when a DEWA account in their name stays active while it is empty.
Is VAT charged on the housing fee?
No. DEWA says VAT doesn't apply to the housing fee, which it collects on behalf of Dubai Municipality.
Do UAE nationals pay the housing fee?
No, UAE nationals are exempt. If the fee appears on a UAE national's DEWA account, apply for a correction through Dubai Municipality's Adjust Housing Fees service.
How do I get a housing fee refund in Dubai?
Apply through Dubai Municipality's Adjust Housing Fees service on its website, the DM app or Dubai Now. It is free, DM replies within three working days, and an approved refund is credited to your DEWA account.
Is the housing fee charged on a vacant property?
Yes, while the DEWA account is active, because Dubai Municipality starts the fee when the account is activated. Deactivate or close the account to stop it, and ask DM for a correction if a final bill charges it for an empty home.
Sources
- Dubai Municipality: Adjust Housing Fees: rates for tenants and owners, exemptions, vacant homes, corrections and refunds, Revenue Law of 1962 (checked 1 November 2026)
- DEWA: Bill Payment: 12 equal monthly instalments (checked 1 November 2026)
- DEWA: Bill Explanation: 5% of annual rent over 12 months (checked 1 November 2026)
- DEWA: Consumer FAQs: no VAT on the fee; accounts opened from Ejari (checked 1 November 2026)
- DEWA news, 5 February 2024: rent and fee updated from Ejari at renewal (checked 1 November 2026)
- DEWA: Move-out service guide: final bill and deposit (checked 1 November 2026)
- Dubai Land Department: FAQ: the tenant pays the 5% (checked 1 November 2026)
- Dubai Land Department: Rental Index (checked 1 November 2026)
- UAE government portal: Leasing a property in the UAE: 5% of yearly rent on Dubai bills (checked 1 November 2026)
Looking for a home, or for help running one? Ask our leasing team about the rent, and so the housing fee, on the homes we have for rent, or let our property management team handle Ejari, DEWA and handovers on your unit.
