Dubai's hidden costs

Dubai is genuinely tax-free on income, but a string of smaller, less obvious costs add up fast. Knowing them upfront is the difference between a comfortable first year and a stressful one.

The housing & home costs nobody mentions

• The 5% housing fee — a municipality fee equal to 5% of your annual rent, collected monthly via your DEWA bill. On AED 150k rent that's AED 7,500/year. See DEWA setup.
• Cooling/chiller — separate from electricity and potentially thousands a year unless chiller free. District cooling adds a fixed standing charge too.
• The upfront stack — 5% agent commission, 5–10% deposit and the cheque structure all hit at move-in.
• Service charges baked into rent (and paid directly by owners) — see service charges.

The everyday costs that surprise people

• Salik road tolls — AED 4–6 per gate, every crossing; a long commute adds up monthly.
• Parking — paid in many areas, plus mall and building visitor parking limits.
• Health insurance for dependants — mandatory and on you, not your employer.
• School extras — registration, deposits, uniforms, buses, trips on top of fees.
• Alcohol — licensed, taxed and expensive if you drink.
• 5% VAT on most goods and services.

The annual renewal costs

• Visa and Emirates ID renewals for the family.
• Car registration, insurance and testing each year.
• Rent increases at renewal (capped — see the RERA calculator).
• DEWA, cooling and housing fee ongoing.