Property in Dubai
Housing fee mandatory since January 2011
The Dubai Municipality has announced mandatory housing fee, beginning 1st January 2011, aiming to bring in about 300,000 unit occupants evading the fee, a top government official said.
The Director of Finance Department at the Dubai Municipality, Aref Abdulrahman Ahli, mentioned that there are about 300,000 units that are DEWA (Dubai Electricity and Water Authority) consumers, but, are not paying the housing fee at present.
Henceforth, all occupants in Dubai, irrespective of apartments or villas in free zone or freehold areas, will have to pay the housing fee, prior to the said deadline. However, freehold property owners will not be charged 0.5percent of their annual sales contract value. Instead, the fee will be charged at five percent annually of the average RERA rental index for that particular community.
Tenants will have to continue to pay five percent of annual rent as housing fee.
Posted on 31/5/2010