Additional cost

Taxes, insurance and utilities

Additional cost

Dubai levies no property purchase taxes or annual property taxes, nor any value-added or capital gains taxes. However, you must still pay a municipality tax.

Dubai gets around the property tax by levying a monthly “housing fee” (also known as the municipality tax). All property owners must pay 5% of the average rental value in their area. This is an odd way to calculate a property tax, but it is a small price to pay compared to the property taxes in other countries.

Dubai also levies an annual waste collection tax. Generally, you pay between 10 and 20 AED for every square foot of your property. The tax pays for community maintenance, such as rubbish removal and road maintenance.

Home insurance

Home insurance policies are offered by banks and cost around 350 dirhams per month for a standard policy. For a premium plan, you can expect to pay 1,500 dirhams per month.


You are billed monthly for your water, electricity and gas usage. If you are moving into a new home or wish to register the bill into your name, you should contact the utility companies' office. You will need to bring proof of property ownership, a deposit, your passport and your residence permit.

Water and electricity are provided by Dubai Electricity and Water (DEWA). For more information about services and payments, visit DEWA's website .

Natural gas is provided by Dubai Natural Gas (also called Dugas). Dugas can be contacted at: +971 4-881-2121.

In summer, you should expect to pay at least 1,800 AED per month for water and electricity for a villa with air conditioning .

Further reading

Does this article help?

Do you have any comments, updates or questions on this topic? Ask them here: