Municipality Fees in Abu Dhabi: A Detailed Guide

When renting a property in Abu Dhabi, it is important to consider factors like the municipality fees. The Abu Dhabi Municipality of Housing and Transport implemented these fees in February 2016. They are included in the Abu Dhabi Distribution Company (ADDC) bills, along with electricity and water rates. 

This guide provides comprehensive information on the municipality fees in Abu Dhabi. It includes the registration and payment process and the individuals or entities accountable for these expenses.

• What Are Municipality Fees?
• How to Sign Up for Municipal Fees
• How Much Are Municipality Fees?
• Methods for Making Payments for Municipality Fees
• Who Needs to Pay Municipality Fees ?
• FAQs
• Conclusion

What Are Municipality Fees in Abu Dhabi?

Municipality fees are a mandatory cost for expatriate renters in the capital, calculated as 5% of the annual rental value, whether you are leasing a modest studio or a high-end apartment in Etihad Towers. This is similar to the housing fee included in DEWA bills when paying for an apartment rent Dubai, ensuring that municipal services are maintained across the emirates.

How to Sign Up for Municipal Fees

To register for Abu Dhabi Municipality fees, renters must complete these steps:

1. Register Tenancy Agreement on Tawtheeq: Tawtheeq is the authorised platform in Abu Dhabi for officially recording tenancy agreements. You must officially record your tenancy agreement on Tawtheeq when leasing a property. By registering, you will be instantly enrolled in the municipality fees system.

2. Automated Registration: After you register your tenancy contract on Tawtheeq, your municipality fees will be automatically added to your ADDC utility bills. This guarantees a smooth and uncomplicated procedure for renters.

It is crucial to understand that municipal fees only apply to expatriate renters. UAE citizens are excluded from these costs on residential contracts designed for their use.

How Much Are Municipality Fees in Abu Dhabi?

The fees imposed by the Abu Dhabi Municipality are determined to be 5% of the yearly rental value. This is stated in the tenancy contract, with a minimum annual cost of AED 450. Below is a detailed demonstration of the process for calculating these fees:

• Calculate Annual Rent: Determine the specific amount of rent that is mentioned in your rental agreement for each year.

• Calculate 5% of rent: Multiply your yearly rent by 5% (0.05). For a supposed rent of AED 20,000, this computation yields AED 1,000.

• Monthly payments: To pay on a monthly basis, just divide the total yearly amount by 12. Therefore, dividing AED 1,000 by 12 results in AED 83.33 every month.

Irrespective of the duration specified in the rental agreement, the municipality charge must be paid within 10 days of issuance. There is a distinct AED 50 cost for the registration of economic leasing contracts, regardless of the tenancy duration.

Methods for Making Payments for Municipality Fees in Abu Dhabi

Abu Dhabi’s Municipality fees may be conveniently paid using the bill payment options provided by ADDC. Tenants may pay their fees by following these steps:

1. ADDC Registration: Sign up on the official ADDC website to use online bill payment facilities.

2. Online Payment: Utilise the ADDC mobile application or website to conveniently settle your invoices, including the fees imposed by the municipality. Additionally, payments may be made via affiliated financial institutions.

3. Prompt Payment: Make sure to pay the fees promptly in order to prevent any interruption in service. Nonpayment of the municipality fee by the specified deadline may lead to the termination of power and water connections. Reconnection may require additional fees for reconnection.

Who Needs to Pay Municipality Fees in Abu Dhabi?

Every foreign renter residing in Abu Dhabi must pay the municipality fees. If the employer provides the rental lodging, they are accountable for paying these expenses. Tenants are obligated to pay municipal fees, regardless of whether their leased home is unoccupied.

Renewing the Tenancy Contract

You will be notified two months in advance when the expiration date of your leasing agreement approaches. To ensure the continuation of your contract without any interruptions in services, please adhere to the following instructions:

• Update Lease Agreement: Renew your tenancy contract and modify the information in the Tawtheeq system.

• Recalculate Fees: Make sure the changed rental value is represented and calculate the new municipality fees appropriately.

• Renewal procedure: Complete the renewal procedure online with the Abu Dhabi Department of Municipalities and Transport.

FAQs

Understanding and paying Municipality fees in Abu Dhabi is vital for both residents and businesses. These fees support the city’s infrastructure and services, ensuring a high quality of life for everyone. By adhering to payment guidelines, you can contribute to the city’s continued growth and prosperity.

To address any issues regarding the municipality fees, renters can reach out to the Abu Dhabi Government Contact Centre. Contact them at 800 555 or send an email to tawtheeq@adm.abudhabi.ae. 

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