Abu Dhabi’s 3% Municipality Fee

Abu Dhabi municipality started charging a 3 percent fee to renters in January 2017. The law was introduced in February 2016, which means you also need to pay the backdated fees. Don’t fret! Here is a lowdown on everything you need to know.

image of Abu Dhabi

Who pays?

All expatriates renting in Abu Dhabi, so UAE nationals are exempt. You pay in monthly installments but the backdated fees need to paid immediately.

How is it calculated?

It is 3 percent of your yearly rent and is collected along with the water and electricity bills. You can probably blame the lower oil prices for this fee as they plummeted from $110 a barrel to $43 in just two years.

Moved a few times in the past year?

If you have moved home between 2016 and 2017 and your rent differs from before, the system will be able to adjust the amount. The fees will be based on the latest rental contract you signed. If you no longer live in the UAE but did so when the law was introduced, you need not worry about paying anything.

Any more surprises?

The whole GCC is planning on introducing Value Added Tax (VAT) by the end of 2018. It is estimated to raise Dhs12 million in government revenue, so on the plus side, you will see more exciting projects and services in the UAE. Don’t worry, it won’t come out of your paycheck.