Taxes in UAE
- VAT in UAE
- Excise Tax in UAE
- Custom Duty in UAE
- Property Tax in UAE
- Municipality Tax in UAE
- Tourism Tax in UAE
- Double Taxation Treaties
Municipality Tax in UAE
Taxes on rented properties vary between the Emirates.
In Dubai, residential tenants pay 5% of their annual rent in rental tax, while 10% is added onto commercial tenants.
However, in Abu Dhabi, UAE citizens are not taxed on their properties, but their expat counterparts pay 5%.
In Sharjah, all tenants pay a rental tax of 2%.
The municipality tax is calculated as 5% of your rental contract’s value for all premises, with a minimum amount to pay of AED 450 per annum. Although the total fee applies from the first day of the rental contract, the annual fees are broken down into monthly installment to make payments easier.
How To Calculate Your Municipality Tax
- Your annual rental x 5% ÷ 12
- If your annual rental is 100.000 dhs
- Your tax will be 100.000 x 5% ÷12 =416.67 per month
For more detailed information on Municipality tax in Abu Dhabi, click here.