A handy guide to Abu Dhabi tenancy tax
Renting a home in the capital city comes with exciting experiences and a vibrant urban lifestyle! However, besides your rent, there are other costs, such as the Abu Dhabi tenancy tax. These charges are also called the Abu Dhabi Municipality fees. Let’s explore these charges, how to pay them and other information regarding these fees.
WHAT IS ABU DHABI TENANCY TAX?
The Abu Dhabi Municipality fees for tenants are an additional charge alongside the water and electricity bills. These fees can be paid monthly or as an annual charge. So, if you rent an apartment, villa, or any other property, you must pay the Abu Dhabi Municipality fees. These charges are similar to Dubai Municipality housing fees.
HOW TO CALCULATE THE ABU DHABI TENANCY TAX?
The Abu Dhabi Distribution Company (ADDC) and its sister company AADC in Al Ain collect municipality fees for the Department of Municipal Affairs and Transport.
These fees are 5% of any rental contract’s value across varying property types. The minimum fee is AED 450, regardless of the rental property type. While the full fee accrues from the start date of the rental agreement.
However, ADDC makes payments easy for tenants who choose to pay the fee in monthly installments. Renters receive a separate bill for municipality fees and regular utility bills every month.
Consider this example for a clearer understanding:
If your rent in Abu Dhabi is AED 10,000 per year as per your tenancy contract, the municipality fee is calculated at 5%.
Multiply the rent by 5% (10,000 x 5/100) to get AED 500. This is the annual fee that will be added to your ADDC bills.
Don’t fret if the lump sum seems hefty. ADDC can break down this annual fee into monthly instalments for easier payments.
Divide the annual fee (AED 500) by 12 months to get AED 41.67 per month. This is the amount you’ll pay for the municipality fee alongside your water and electricity bills.
THINGS TO CONSIDER
- The Abu Dhabi Municipality fee applies to all tenancy contracts, regardless of the agreement period.
- While the annual fee is due from the start of the lease, you have 10 days to make the payment after receiving the bill.
- A separate AED 50 fee for documentation and registration of economic lease contracts is payable to the Abu Dhabi Municipality for property registration.
HOW TO REGISTER FOR TENANCY TAX IN ABU DHABI
As a tenant, when you register the rental agreement with Tawtheeq Abu Dhabi, you’re automatically enrolled to pay the municipality fees. However, there are two ways to register for municipality tax in Abu Dhabi with Tawtheeq.
It’s important to remember that if you don’t register with Tawtheeq, you’ll need to show the Abu Dhabi Municipality some other proof that you’re renting the place.
This is to ensure that your water and electricity are connected smoothly. It’s essential to check all the facts and FAQs about Tawtheeq in Abu Dhabi as a tenant or a landlord.
ONLINE REGISTRATION
For an online application, visit The Abu Dhabi Municipality’s official website and register using the Tawtheeq e-form. Make sure you enter all the required information correctly.
AS WALK-IN CUSTOMER
If you prefer to visit an office for registration, visit any approved Abu Dhabi Municipality Tawtheeq centres like the Customer Service Centre at the Municipality of Abu Dhabi City (Head Office).
HOW TO PAY ABU DHABI TEANANCY TAX (MUNICIPALITY FEES)
Paying your municipality fees on time is crucial if you are renting a property in Abu Dhabi. Missing the due date could lead to a disruption of your utility services in your rented property.
Abu Dhabi Municipality adds its fees to the ADDC bill. This means a single, streamlined payment process for all your essential services offered through the TAMM official website and apps.
To avoid any inconvenience and additional reconnection charges, use the convenient payment methods offered by ADDC. You can pay online through the TAMM mobile app, which is available on the App Store and Play Store or the official website.
Alternatively, visit any of the partner banks to clear the dues. Payment through a bank includes cash, cheque, credit card, or bank transfer at our Customer Service Centres. You can also pay at select ATMs, banks, or exchanges. To check your balance, text your account number to 2800.
FAQs ABOUT ABU DHABI MUNICIPALITY FEE
HOW MUCH IS THE ABU DHABI MUNICIPALITY FEE FOR TENANTS?
The Abu Dhabi Municipality fee charges are 5% of any rental contract’s value for any property type.
HOW TO RENEW TENANCY CONTRACT IN ABU DHABI?
You must be aware of your tenancy contract and its expiry date. For this purpose, the municipality will send a notification to renew the Tawtheeq contract two months before your lease expires.
If you and your landlord agree to continue, update the contract details at the Department of Municipal Affairs and Transport before the expiry date to avoid service disruptions. Visit the TAMM online portal for more information and contract renewal.
HOW MUCH IS THE TAWTHEEQ TENANCY CONTRACT RENEWAL FEE?
The Tawtheeq lease contract renewal fee costs AED 50.
DO I NEED TO PAY TENANCY TAX IF I AM ON A LONG HOLIDAY?
Yes, tenants are liable to pay the tenancy tax in Abu Dhabi. Even if you don’t reside in the rental property, you have to pay if the lease agreement is under your name.
WHERE CAN I FIND MORE INFORMATION ABOUT TENANCY PROPERTY TAX IN ABU DHABI?
If you have further queries about the municipality fees in Abu Dhabi, contact the Government Contact Centre at 800-555 or email tawtheeq@adm.abudhabi.ae. You can also seek information from the ADDC via the number 800-2332 or email contactcentre@addc.ae
This concludes our guide to Abu Dhabi tenancy tax. These charges apply to anyone who rents a property except UAE Nationals. It’s important to pay any due charges as a tenant to avoid any disruptions.
