Hello everyone,
If you are renting or about to rent property in Abu Dhabi, pay attention to the latest tax measures.
From now on, expats renting property in Abu Dhabi will have to pay a 3% municipal tax according to their yearly lease. This new tax is similar to the 5% housing tax which is in force in Dubai. However, locals will be exempt from this newly introduced tax.
The municipal tax will be collected by the Abu Dhabi Water and Electricity Authority, unless otherwise is stipulated in the lease contract. It will then be used for Tawtheeq and registration costs for tenancy contracts.
On the other hand, a 4% will apply to hotel bills throughout the country. As at now, Abu Dhabi hotels apply a 6% municipal tax and a 10% service charge.
Note that these measures have been introduced so as to tackle the budget deficit linked to declining oil prices.