Dubai holiday home licence: Complete 2026 guide
Can you legally rent out your Dubai property on Airbnb? Only with a holiday home licence from Dubai’s Department of Economy and Tourism (DET). This government permit authorises property owners to operate short-term rentals, and the emirate actively enforces compliance through platform monitoring and property inspections.
Dubai’s tourism market continues its upward trajectory, with visitor numbers reaching record levels and the city positioning itself as a global hospitality hub. This growth translates directly into opportunity for property owners, whether you’re buying property in Dubai specifically for rental income or looking to monetise an existing asset.
The holiday home licensing system protects legitimate operators whilst maintaining Dubai’s reputation for quality accommodation. For those evaluating holiday homes investment in Dubai, understanding the regulatory framework is essential.
The licensing process determines whether your property can legally access the short-term rental market, which typically delivers significantly higher yields than traditional long-term leases.
This guide walks through the complete process for operating holiday homes in Dubai: eligibility requirements, step-by-step application procedures, cost breakdowns, classification standards, and ongoing compliance obligations.
What is a Dubai holiday home licence?
A holiday home licence is an official permit issued by the Department of Economy and Tourism that legally authorises you to rent furnished properties on a short-term basis – from one night up to three months per booking.
Dubai implemented this licensing system to maintain quality standards across its rapidly growing short-term rental market. The framework ensures properties meet minimum safety requirements whilst creating a structured revenue collection mechanism through the Tourism Dirham fee – a nightly charge applied to all holiday home stays.
The enforcement is straightforward: authorities actively monitor major booking platforms including Airbnb and Booking.com. Properties operating without proper licensing face removal from these platforms, along with financial penalties and complications for future licence applications.
Your licence specifically covers short-term bookings, whether nightly, weekly, or monthly arrangements up to 90 consecutive days.
Standard long-term tenancy agreements operate under separate regulations and don’t require this permit, though some property owners work with management companies that offer hybrid models switching between short and long-term rentals based on market conditions.
Who can apply for a holiday home licence in Dubai?
Dubai’s licensing system accommodates both individual property owners and professional operators, but the pathways differ significantly based on how many properties you intend to manage.
Individual owners (up to 8 properties)
Individual owners can license up to eight properties without establishing a formal business entity. This route suits homeowners looking to rent out their own property or small-scale investors building a modest portfolio.
You’ll need either direct ownership (your name on the title deed) or a formal lease agreement with written permission from your landlord – known as a No Objection Certificate (NOC).
Professional operators (9+ properties)
Professional operators managing nine or more properties must obtain a trade licence with “Vacation Homes Rental” listed as their commercial activity.
This requires company incorporation, office space in Dubai, and additional documentation beyond the standard property requirements. Most established property management firms operate under this structure.
Property eligibility requirements
The property itself must meet specific criteria regardless of which pathway you follow.
Your title deed must classify the property as “Residential” for apartments, or “Residential” or “Commercial” for villas within gated communities. Standalone villas require “Commercial” classification or, in Hatta specifically, can operate as licensed farms.
Hotel apartments cannot be licensed as holiday homes, as they fall under different hospitality regulations.
Properties that cannot be licensed
Certain properties face outright restrictions.
If your sale and purchase agreement explicitly prohibits short-term rentals, DET won’t issue a licence regardless of your ownership status. Similarly, some buildings and residential communities ban holiday homes entirely through management rules or master development plans.
This is particularly common in older freehold buildings where residents have voted against short-term rentals, and in certain developer communities that restrict rental types.
Verify before you buy
Before investing in property specifically for holiday home income, verify that short-term rentals are actually permitted.
Request written confirmation from the developer or building management, and review your title deed and sale agreement carefully. Major developers like Emaar and DAMAC have varying policies across their different communities – permission in one development doesn’t guarantee it elsewhere.
Assuming your property qualifies and you meet the ownership requirements, the next step is gathering the specific documents DET requires for your application.
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Dubai holiday home licence requirements: Complete checklist
The documents you’ll need depend on whether you’re applying as an individual owner or professional operator, but certain items are universal.
Required for all applicants
Property documentation:
- Valid title deed showing property classification
- Recent DEWA bill (Dubai Electricity and Water Authority)
- Ejari registration certificate
Personal identification:
- Emirates ID (for UAE residents)
- Passport copy (for non-residents or in addition to Emirates ID)
Insurance and safety:
- Comprehensive insurance policy covering guest damage, valid throughout the licence term
- Policy must be issued by an insurer licensed to operate in Dubai
- SIRA-approved smart lock connected to the Keyless system, installed on the main entry door
Additional requirements for tenants
If you’re leasing the property rather than owning it outright, you’ll need a No Objection Certificate (NOC) from your landlord.
This document must explicitly permit short-term rental use – a standard tenancy contract isn’t sufficient. There’s no standard NOC format, so requirements vary by landlord. Some provide these readily, whilst others refuse entirely or charge administrative fees.
Processing time for NOCs typically ranges from one to four weeks, though this varies significantly. Request this early in your planning process, as you cannot proceed with the DET application without it.
Additional requirements for professional operators
Companies managing nine or more properties need business documentation beyond the property requirements:
- Trade licence with “Vacation Homes Rental” activity listed
- Company incorporation documents
- Tenancy agreement for registered office space in Dubai
The insurance requirement explained
Your insurance policy must specifically cover damage caused by guests during their stay. Standard building insurance or landlord insurance typically doesn’t include this coverage.
Annual premiums generally range from AED 500 to AED 1,500 depending on property value and coverage limits. The policy must remain active throughout your entire licence validity period – allowing it to lapse can result in licence suspension.
The SIRA smart lock requirement
All holiday homes must install a SIRA-approved smart lock connected to Dubai’s Keyless system on the main entrance door.
These locks enable authorities to monitor guest access and ensure proper guest registration. Standard smart locks from international brands don’t satisfy this requirement unless they’re specifically SIRA-certified and Keyless-compatible.
Installation costs typically range from AED 500 to AED 1,000 including the lock hardware and activation. Your property management company can usually arrange this, or you can work directly with SIRA-approved installers.
With your documents assembled, you’re ready to begin the formal application process through DET’s online portal.
Step-by-step: How to get a holiday home licence in Dubai
The entire process typically takes two to four weeks if you have all documents ready, though NOC requests can extend this timeline.
Step 1: Verify property eligibility
Before starting your application, confirm your property can legally operate as a holiday home.
Check your title deed classification and review your sale and purchase agreement for any short-term rental restrictions. Contact your building management or developer directly to confirm whether holiday homes are permitted – don’t assume based on other properties in the same development.
If you’re leasing, approach your landlord about the NOC immediately. This single document often becomes the longest part of the process.
Step 2: Register on the DET Holiday Homes Portal
Visit DET Holiday Homes portal and create an account. You’ll select your user type (individual owner or professional operator) and accept the terms and conditions.
Registration is immediate and you’ll have portal access the same day.
Step 3: Prepare your property
Your property must meet DET’s classification standards before inspection. These requirements vary based on whether you’re targeting Standard or Deluxe classification.
Install your SIRA-approved smart lock and ensure it’s properly connected to the Keyless system. Arrange your insurance policy and confirm it includes guest damage coverage. Prepare all required furnishings and amenities according to the classification criteria – inspectors verify these against official checklists.
This preparation phase typically takes one to two weeks depending on how much work the property needs.
Step 4: Submit your application
Log into the DET portal and complete the online application form. You’ll upload all required documents: title deed, DEWA bill, Ejari certificate, insurance policy, identification documents, and NOC if applicable.
Provide detailed property information including the DEWA premise number, unit specifications, number of bedrooms, and your intended classification level.
The application submission itself takes less than an hour once you have everything prepared.
Step 5: Pay registration fees
Once you submit your application, you’ll receive a payment link via email. The system calculates your fees automatically based on property details.
You’ll pay AED 1,520 for registration (including knowledge and innovation fees) plus AED 320 for the inspection. Payment is processed immediately through the online portal using a credit or debit card.
Step 6: Property inspection
DET schedules inspections within one business day of payment confirmation. An inspector will visit your property to verify compliance with classification standards.
The unit must be completely empty during inspection – no guests, no personal belongings if you’re moving out, just the furnished property ready for rental.
Inspectors check safety equipment, verify all amenities against classification requirements, confirm the smart lock integration, and assess overall property condition. The inspection typically takes 30 to 45 minutes.
Step 7: Receive your permit
If your property passes inspection, DET issues your permit the same day. You’ll receive a permit number and access to generate your official QR code.
Print the QR code as a 5cm × 5cm laminated sticker and affix it beneath the DEWA premise plaque on your unit’s exterior door. This QR code allows guests and building residents to submit feedback directly to DET.
You can now legally list your property on Airbnb, Booking.com, and other rental platforms. Include your DET permit number in all listings.
If your property fails inspection
DET notifies you of specific deficiencies if your property doesn’t meet requirements. You have two weeks to address the issues and request a re-inspection.
Common failure points include missing safety equipment (fire extinguishers, smoke detectors), inadequate furnishings for the declared classification level, or smart lock connectivity problems.
Dubai holiday home licence costs breakdown
The fees outlined below are accurate as of the time of writing but may change. Always verify current pricing through the official DET Holiday Homes portal before starting your application.
Understanding the complete cost structure helps you budget accurately and calculate your actual return on investment.
One-time registration fees
Initial application costs:
- Registration fee: AED 1,520 (includes knowledge and innovation fees)
- Inspection fee: AED 320
- Total upfront: AED 1,840
These fees are non-refundable, even if your property fails inspection or you decide not to proceed.
Annual permit fees
Bedroom-based pricing:
- AED 300 per bedroom
- AED 70 per unit (flat fee regardless of size)
Example calculations:
- Studio apartment: AED 300 + AED 70 = AED 370 per year
- 1-bedroom apartment: AED 300 + AED 70 = AED 370 per year
- 2-bedroom apartment: AED 600 + AED 70 = AED 670 per year
- 3-bedroom villa: AED 900 + AED 70 = AED 970 per year
Permits are valid for one year from issuance and must be renewed manually before expiry. DET doesn’t send renewal reminders, and operating on an expired permit carries the same penalties as operating without one.
Ongoing operational costs
- Tourism Dirham fees: This is the most significant ongoing cost, though you collect it from guests rather than paying it yourself. You’re responsible for collection and monthly remittance to DET.
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- Standard classification: AED 10 per bedroom per night
- Deluxe classification: AED 15 per bedroom per night
Payment deadline is the 15th of each month for the previous month’s bookings. Late payment incurs a 10% penalty with a minimum fine of AED 1,000.
- Insurance premiums: Annual comprehensive insurance typically costs AED 500 to AED 1,500 depending on property value, location, and coverage limits. Budget towards the higher end for newer or more valuable properties.
- SIRA smart lock: One-time installation cost of AED 500 to AED 1,000 including hardware and Keyless system activation. Some locks require annual subscription fees of AED 100 to AED 200 for cloud connectivity.
First-year total cost example
For a standard 2-bedroom apartment in Dubai Marina:
- Registration and inspection: AED 1,840
- Annual permit: AED 670
- Insurance: AED 800
- Smart lock installation: AED 700
- Total first-year investment: AED 4,010
Subsequent years drop to approximately AED 1,470 annually (permit renewal plus insurance), excluding the Tourism Dirham fees you collect from guests.
Professional management fees
If you hire a property management company rather than managing yourself, expect commission-based pricing of 15% to 25% of rental income.
GuestReady operates on a commission model rather than flat monthly fees, so your success is our success. This ensures ongoing quality management whilst we handle all licensing, compliance, and guest operations.
Understanding the Tourism Dirham fee
The Tourism Dirham is a mandatory nightly fee charged on every holiday home booking in Dubai. You collect it from guests and remit it to DET monthly.
How the fee works
The Tourism Dirham applies per bedroom per night, regardless of how many guests occupy that bedroom.
Fee structure:
- Standard classification: AED 10 per bedroom per night
- Deluxe classification: AED 15 per bedroom per night
A 2-bedroom Deluxe apartment with a guest staying five nights generates AED 150 in Tourism Dirham fees (2 bedrooms × 5 nights × AED 15).
Collection and payment rules
You must collect the Tourism Dirham from guests at the time of booking or check-in. The fee should appear as a separate line item on all invoices and booking confirmations, clearly labelled “Tourism Dirham.”
Payment to DET is due by the 15th of each month for all bookings from the previous month. You’ll generate payment orders through the DET Holiday Homes portal and settle via bank transfer or the online payment system.
Important exception: For stays exceeding 30 consecutive nights, you only collect Tourism Dirham for the first 30 nights. A guest staying 45 nights pays for 30 nights only.
Penalties for non-compliance
Late payment carries a 10% penalty with a minimum fine of AED 1,000. If you collect Tourism Dirham from guests but fail to remit it to DET, the penalty is 10% of the uncollected amount (minimum AED 1,000) plus you still owe the original fee.
Failing to show the Tourism Dirham as a separate charge on guest invoices results in an AED 1,000 fine, even if you’re collecting and remitting the fee correctly.
Practical management
Most property management companies handle Tourism Dirham collection and remittance automatically through their booking systems. If you’re self-managing, you’ll need to track this manually across all booking platforms.
The DET portal provides reporting tools to help calculate your monthly obligations, but you’re responsible for ensuring accurate guest registration data feeds into these calculations. For owners struggling with these requirements, finding a rental management company that automates compliance can prevent costly violations.
Standard vs Deluxe classification: What’s the difference?
Your property’s classification determines the Tourism Dirham rate (AED 10 vs AED 15 per bedroom per night) and the minimum standards your property must meet.
DET assigns classification based on actual amenities during inspection. You don’t choose your classification, you qualify for it based on what your property offers.
Key Standard classification requirements:
- Minimum 12 sqm per bedroom (17 sqm for studios)
- Single beds minimum 190cm × 90cm, doubles 190cm × 135cm
- Shower in bathrooms
- Basic kitchen with cooking device and fridge
- Standard furnishings and WiFi
Key Deluxe classification requirements:
- Minimum 14 sqm per bedroom (20 sqm for studios)
- Larger beds: singles 200cm × 120cm, doubles 200cm × 150cm
- Bath tub or glass-enclosed shower
- Full kitchen with oven and separate freezer compartment
- Dishwasher for 2+ bedroom properties
- En-suite bathroom in master bedroom
- Television in master bedroom
- Higher-quality furnishings and décor
Most properties naturally fall into Standard classification. Deluxe requires intentional investment in larger spaces and premium amenities. The AED 5 per bedroom per night difference in Tourism Dirham rarely justifies upgrading solely for classification purposes.
Ongoing compliance requirements
Operating legally requires more than just obtaining your initial licence.
- Guest registration obligations: Register all guests in the DET system within three hours of check-in. This isn’t a guideline, it’s a legal requirement monitored by authorities. Upload guest passport or Emirates ID details through the Holiday Homes portal for every booking.
- Property maintenance: Display your QR code beneath the DEWA premise plaque on your unit’s exterior door. Keep your licence information visible inside the property. Maintain valid insurance throughout the entire licence period. DET conducts unannounced inspections to verify continued compliance with classification standards.
- Monthly reporting: Submit Tourism Dirham payments by the 15th of each month. Maintain accurate guest registers accessible to authorities upon request. Keep all booking records for the period specified by DET.
- Annual renewal: Licences expire after one year and don’t renew automatically. You must submit a renewal application before expiry. Operating on an expired licence carries identical penalties to operating without one.
Most violations stem from missed Tourism Dirham deadlines or failure to register guests within the three-hour window. Professional management companies automate these obligations through integrated systems.
Common violations and penalties
Dubai enforces holiday home regulations actively. Understanding common violations will help you avoid costly mistakes.
Operating violations
- No licence: AED 5,000+ fine, platform delisting, future licensing restrictions
- Expired licence: Treated identically to operating without a licence
- Closure order ignored: AED 20,000
Tourism Dirham violations
- Late payment (after 15th of month): 10% penalty, AED 1,000 minimum
- Not collecting from guests: 10% penalty, AED 1,000 minimum
- Missing from invoices: AED 1,000
Guest management violations
- Registration beyond 3-hour window: Fines apply
- Poor record keeping: AED 1,000
- Wrong contract type: AED 500
Property violations
- QR code missing/damaged: AED 300
- Insurance lapsed: AED 2,000
- Failed compliance standards: AED 500
Professional property managers automate these compliance requirements through integrated systems, significantly reducing violation risk.
Penalty amounts may be updated by DET. Verify current fines through the official Holiday Homes portal.
Choosing between self-management and professional operators
Most Dubai holiday home owners face a practical decision: manage the property yourself or hire a professional management company.
Self-management considerations
Managing your own property works if you live in Dubai or the UAE, have time for 24/7 guest communication, and can handle compliance obligations personally.
You’ll need to register guests within three-hour windows, collect and remit Tourism Dirham monthly, coordinate cleaning between bookings, handle maintenance issues immediately, and manage multi-platform listings yourself.
The benefit is avoiding management fees of 15% to 25% of rental income. The reality is significantly more time commitment than most owners anticipate, particularly around managing Airbnb guest expectations and compliance deadlines.
When professional management makes sense
Professional management becomes essential for international owners, those with multiple properties, or anyone wanting genuinely passive income.
What Dubai presents uniquely:
The three-hour guest registration window becomes problematic when you’re not physically in Dubai. Tracking Tourism Dirham across multiple platforms and ensuring payment by the 15th each month requires dedicated systems. Dubai’s guests also expect hotel-level service standards, not the casual communication style that might work in other markets.
The city’s ability to pivot between short-term and long-term rental strategies based on market conditions also requires active market knowledge and operational flexibility.
GuestReady’s approach in Dubai
GuestReady’s Dubai team handles the complete property lifecycle.
- Compliance management: All DET licensing procedures, guest registration within required timeframes, Tourism Dirham collection and monthly remittance.
- Operations: 24/7 guest communication, professional check-in and checkout coordination, hotel-quality housekeeping between stays, and maintenance response.
- Revenue optimisation: Dynamic pricing that adjusts in real-time based on demand, multi-channel synchronisation across Airbnb, Booking.com, and direct bookings, and the ability to pivot between short-term and long-term rental strategies as market conditions change.
- Technology platform: Owners access a real-time mobile dashboard tracking revenue, occupancy, bookings, and maintenance. The system automates compliance requirements that would otherwise require manual tracking.
GuestReady operates on commission rather than flat fees, so your success is our success. This ensures ongoing quality management whilst we handle all licensing, compliance, and guest operations.
Frequently asked questions
How long does it take to get a Dubai holiday home licence?
- Two to four weeks if all documents are ready. Portal registration is immediate, but NOC requests and inspection scheduling add time. Properties requiring renovation work to meet classification standards will take longer.
Can I manage the property myself or must I use a management company?
- Individual owners can manage up to eight properties themselves. Professional management isn’t mandatory, but you’ll handle all compliance obligations personally including three-hour guest registration windows and monthly Tourism Dirham remittance.
What happens if I list my property without a licence?
- DET monitors major booking platforms actively. Unlicensed properties face minimum AED 5,000 fines, removal from Airbnb and Booking.com, and complications for future licence applications.
Do I need a UAE residence visa to get a holiday home licence?
- No. The licence itself doesn’t require UAE residency. However, practically managing a holiday home from outside the UAE presents significant compliance challenges, particularly around guest registration deadlines.
Can tenants obtain holiday home licences?
- Yes, if you have written NOC from your landlord explicitly permitting short-term rental use. Standard tenancy contracts aren’t sufficient. Many landlords refuse these requests or charge administrative fees for NOC processing.
Should I use a property management company for my Dubai holiday home?
- Most international owners and those with multiple properties benefit from professional management. Dubai’s strict compliance requirements (Tourism Dirham remittance, 3-hour guest registration, monthly DET reporting) combined with high guest service expectations make DIY management challenging unless you’re locally based and have significant time availability.
- GuestReady handles all regulatory compliance whilst offering hotel-standard guest services, with pricing based on commission rather than flat fees. Their hybrid model also allows you to pivot between short-term and long-term rental strategies as market conditions change.
Getting started with your Dubai holiday home
Own a property in Dubai and curious about its holiday home potential? Already licensed but finding the compliance demands overwhelming? Or simply want to understand your realistic options in Dubai’s competitive market?
Let’s talk. Just an honest conversation about your property, your goals, and how we can help you achieve them.
The short-term rental market in Dubai continues growing and professionalising. The question isn’t whether to participate, but how: managing compliance yourself whilst juggling guest demands, or working with professional property management in Dubai that handles the complexity whilst you track the returns.
