New municipal levy on rent and hotels in Abu Dhabi

Abu Dhabi will now charge its expat residents 3% of rent as municipal fee soon. This is similar to Dubai’s 5% municipal tax payable along with utility bills.

Hotel guests would also pay a new 4% tax on hotel bills and AED15 additional charge per night. This is not related to the city tax of 6% and a 10% service charge.

In view of falling oil price of oil from over USD 110 per barrel in 2014 to about USD 40 on average for many weeks now, government will have to introduce levies for revenue generation. Dubai recently introduced a service fee of AED 35 on most passengers using airport facilities in Dubai. VAT may also be introduced in 2018.