Service charge higher than expected in Dubai: a playbook for US buyers

Dubai service charges run on a published, approved rate, so an invoice above the brochure figure can be tested against a government registry rather than a sales conversation.

Why is the service charge higher than expected in Dubai for US buyers?

In Dubai, your annual service charge is your share of a RERA-approved budget, split by unit area under Law No. 6 of 2019. A higher bill usually traces to the approved rate, the area used for your unit, or a line that was never approved.

Collection without approval

Not allowed

Art. 27(a), Law No. 6 of 2019

How your share is split

By unit area

Art. 25(a)

Unapproved common charges

Not payable

Source: DLD FAQ

USD peg

AED 3.6725 = $1

Since February 2002, per u.ae

1. Get the breakdown

   Request line items and the area used.

2. Find the approved rate

   Search the Service Charge Index.

3. Rebuild the bill

   Rate times area, in dollars.

4. Ask for the approval trail

   Request the RERA approval reference.

5. Escalate in writing

   Dispute only the unapproved lines.

Step 1: Get the line-by-line breakdown

Ask the management company for the itemized invoice, the budget year and the square footage used for your unit. Area is the multiplier: Article 25(a) of Law No. 6 of 2019 allocates the annual charge by unit area, so a different measurement changes the total even when the rate is correct.

Timing matters: a note sent at 6 p.m. in New York lands at 2 a.m. in Dubai; from Los Angeles, 3 p.m. PDT is already 2 a.m. there.

Step 2: Find the RERA-approved rate for your building

The DLD Service Charge Index shows approved service fees for jointly owned projects by project, use and year, on the DLD website through Mollak and in the Dubai REST app. Mollak is the DLD's e-system, run through RERA, for monitoring service charges. See our Service Charge Index walkthrough.

Step 3: Rebuild the bill in dollars

Multiply the approved rate by your area, then convert. The UAE government portal says the dirham has been pegged at AED 3.6725 to the US dollar since February 2002.

Example: a hypothetical 1,000 sq ft unit with an approved rate of AED 20 per sq ft comes to AED 20,000 a year, about $5,446.

Step 4: Ask what RERA actually approved

Under Article 27(b) of Law No. 6 of 2019, RERA cannot approve a building budget until a RERA-recognized audit firm has approved it. The DLD's FAQ states that owners are not required to pay common service charges RERA has not approved, so ask for the approval reference behind every line you question.

Step 5: Escalate in writing, and keep paying the approved amount

Raise the gap with the management company first, then with RERA, attaching your working and the approval references. Before you write, check the building's registry record. Article 28 says an owner may not refuse to pay RERA-approved charges, so separate the disputed lines from the approved ones and settle the approved part.

If the unit is rented out, the IRS taxes US citizens and resident aliens on worldwide income; that is general information, not tax advice. For disputes that go further, see our guide to off-plan disputes with a Dubai developer, the global explainer on higher service charges and every US guide in one place.

Service charge questions from American owners

This guide is general information, not legal advice. Laws and procedures change; check the official source before acting. Published 12 October 2026, last updated 12 October 2026.