Holiday Home License in Dubai (2025 Guide)

Thinking About Setting up a Holiday Home Business in Dubai?

If you’ve ever dreamt of turning your apartment or villa into a short-term rental on Airbnb or Booking.com, Dubai is one of the best places to do it. The city’s tourism demand is year-round, returns are strong, and platforms like Airbnb have made it easier than ever to reach global guests.

But before you start welcoming travellers with open arms, you need to get your paperwork and compliance right — otherwise, those “holiday vibes” can quickly turn into hefty fines from the authorities.

Setting up a holiday home license in Dubai is not just about listing your property online; it involves registering with the Dubai Department of Economy & Tourism (DET), obtaining unit permits, charging the Tourism Dirham, and following strict guest registration and safety rules.

In this guide, we’ll walk you through everything — from how to start a holiday home business in Dubai to the real Dubai holiday home license cost 2025, visa options, banking setup, and compliance must-knows — so you can run a fully legal and profitable short-term rental business without getting on the wrong side of the regulations.

Let’s break down how to set up a holiday homes business in Dubai the smart way.

Is It Still Worth Setting Up a Holiday Homes Business in Dubai in 2025?

Absolutely — yes, it’s still worth it, and arguably more than ever before. 

Dubai’s short-term rental market has evolved from a side hustle into a structured, high-yield industry, especially since the Dubai Department of Economy & Tourism (DET) streamlined the holiday home license Dubai framework.

Here’s why starting a holiday home business in Dubai in 2025 still makes strong financial sense:

• Tourism is booming again. Dubai welcomed over 17 million international visitors in 2023, and projections for 2025 suggest record highs as new attractions, cruise routes, and events (like COP28’s legacy push) keep demand steady.
• Short-term rentals outperform traditional leases. A well-managed property under a holiday home license in Dubai can generate 20–40% higher returns than long-term tenancy — especially in prime areas like Dubai Marina, JBR, Downtown, and Business Bay.
• The regulations are clear now. Unlike the early days of Airbnb chaos, the Dubai holiday home license system is transparent, digital, and quick to obtain. Operators can register, classify, and list legally without bureaucracy.
• Low entry costs. Compared to hotel investments, the Dubai holiday homes license cost is minimal — typically under AED 2,000 for registration, plus modest per-unit permit fees.
• Zero income tax & high investor confidence. Dubai’s tax-free environment, paired with global connectivity and flexible visa options, makes it a magnet for property investors seeking yield and liquidity.
• Diversified income potential. Beyond short stays, you can host mid-term rentals for business travellers, digital nomads, and event visitors — all within your holiday home license structure.

The Dubai holiday home license cost is small compared to the returns. As long as you handle your compliance, permits, and Tourism Dirham correctly, setting up a holiday home license in Dubai remains one of the most accessible, profitable, and scalable ways to enter the UAE’s booming tourism economy.

What Type of Licence Do You Need for a Holiday Home Business in Dubai?

Before you launch your short-term rental venture, it’s crucial to know which type of holiday home license in Dubai applies to you. The Dubai Department of Economy & Tourism (DET) offers two clear legal pathways depending on how many units you plan to manage and whether you operate independently or as a professional company.

1. Individual Homeowner or Tenant (Up to 8 Units)

If you own or lease a property and want to rent it out on platforms like Airbnb or Booking.com, you can apply for a Dubai holiday home license as an individual through the DET Holiday Homes Portal.

• You’ll need to register yourself and obtain a permit for each unit you rent out.
• A trade licence is not required, but you’re limited to a maximum of eight units under your profile.
• This route is perfect for private owners or small investors managing a handful of properties.

2. Professional Operator (9+ Units or Managing Others’ Properties)

If you plan to scale, manage multiple properties, or handle rentals for other owners, you’ll need to register as a professional operator.

• Set up a company with the licensed activity “Vacation Homes Rental” under the DET.
• Then register your company on the Holiday Homes Portal and apply for permits for each unit you operate.
• This structure allows for staff visas, business bank accounts, and full operational scaling — essential if you’re building a property management brand.

Whether you’re a solo host or a full-fledged operator, knowing how to set up holiday homes business in Dubai — and choosing the correct licence type — ensures full compliance, smoother approvals, and protection from costly fines.

Mainland Company Formation for Holiday Home Business in Dubai

If you plan to operate more than eight units, manage other people’s properties, or build a professional short-term rental brand, you’ll need to form a mainland company licensed under the activity “Vacation Homes Rental”. 

This is the official structure approved by the Dubai Department of Economy & Tourism (DET) for professional operators applying for a holiday home license in Dubai.

For non-residents wondering how to set up a holiday homes business in Dubai, a mainland company offers flexibility, reputation, and regulatory comfort that far outweigh the small setup cost.

Setting up a mainland company not only makes your business fully compliant but also unlocks key advantages that individual hosts simply can’t access — from banking and visa benefits to unlimited scalability.

Key Benefits of Mainland Formation for Holiday Homes Operators

• Operate Without Unit Limits: Manage more than eight units and legally handle properties for multiple owners.
• Access to Business Banking: Open a corporate account in the UAE to receive OTA payouts (Airbnb, Booking.com, etc.) directly under your company name.
• Visa Sponsorship: Apply for investor, partner, and staff visas tied to your trade licence — essential for hiring and long-term residency.
• Credibility & Scale: A DET-licensed company allows you to operate professionally, sign contracts with landlords, and onboard properties under your brand.
• 100% Foreign Ownership: The “Vacation Homes Rental” activity allows full foreign ownership under Dubai mainland law.

Cost of Holiday Homes License in Dubai

When planning how to start a holiday home business in Dubai, it’s smart to understand every fee upfront. The Dubai Department of Economy & Tourism (DET) has standardised costs for registration, permits, and classifications, keeping the process clear and transparent.

Here’s the full breakdown of the Dubai holiday home license cost 2025:

1. Initial Registration and Inspection

• Registration Fee: AED 1,520 (includes AED 1,500 + AED 10 Knowledge Fee + AED 10 Innovation Fee)
• Inspection Fee: AED 320
• Total Initial Cost: AED 1,840

2. Annual Permit Fees (per unit)

• Studio/1-bedroom: AED 370
• 2-bedroom: AED 670
• 3-bedroom: AED 970
• 4-bedroom and above: AED 1,270

3. Additional Mandatory Costs

• Tourism Dirham Fee: AED 10 per night for standard units; AED 15 for deluxe units
• Municipality Fee: 10% of rental income (deducted monthly from bookings)
• Ejari Registration: AED 195
• DEWA Deposit: AED 2,000–4,000 (refundable)
• Home Insurance: AED 1,000–2,000 annually
• Furnishing & Setup: AED 20,000–60,000 (one-time)
• Cleaning & Supplies: AED 150–250 per guest turnover
• Property Management Service Fees: 15–20% of rental income (optional) 

4. Trade License (if operating as a company)

• Trade License (DET): AED 10,000–15,000 per year.
• Dubai Chamber Membership: AED 300 annually.
• Office Space: Required for Ejari registration; costs vary based on location and size.
• Additional Company Formation Costs: Include visa fees, legal fees, and other administrative expenses.

Documents Required for a Holiday Home License in Dubai

When applying for your holiday home license in Dubai, the Dubai Department of Economy & Tourism (DET) requires several key documents — whether you’re applying as an individual owner or as a registered operator. Having these ready upfront will save time and help you avoid delays or rejection notices in the Holiday Homes Portal.

You’ll need to upload the following when applying for your Dubai holiday home license:

• Owner ID – Emirates ID (for residents) or passport (for non-residents).
• Title Deed or Dubai Land Department (DLD) Sale & Purchase Agreement (SPA).
• Recent DEWA Bill – Must be less than 3 months old and in the name of the owner or licensee.
• NOC / Authorisation Letter – If a third-party company manages the property on behalf of the owner.
• Trade Licence (for Operators) – Showing the licensed activity “Vacation Homes Rental”.

Many freehold towers and villa communities in Dubai require an Owners’ Association (OA) or Building Management NOC confirming that short-term letting is allowed.

• This NOC must be uploaded before DET grants final approval for the holiday homes license Dubai.
• Skipping this step is one of the most common causes of application rejection.

Step-by-Step: How to Start a Holiday Home Business in Dubai

Here’s a clear roadmap for how to set up a holiday homes business in Dubai, from licensing to going live on Airbnb or Booking.com.

Step 1: Decide Your Model – Individual or Professional Operator

• If you’ll manage up to 8 units, apply as an individual via the DET Holiday Homes Portal.
• If you manage more than 8 units or other people’s properties, form a mainland company with the activity “Vacation Homes Rental.”

Step 2: Register on the DET Holiday Homes Portal

• Create your online account and register as an operator.
• Pay the one-time operator registration fee (AED 1,570) during setup.

Step 3: Add Your Unit & Self-Classify (Standard / Deluxe)

• Upload required documents: Title Deed or SPA, ID, DEWA bill, OA NOC, and owner authorisation (if applicable).
• Select your classification — Standard or Deluxe — which determines your Tourism Dirham rate.

Step 4: Pay Unit Permit Fees & Await Approval

• Fees range from AED 370 to AED 1,270 per unit annually depending on bedroom count.
• Once payment is processed, DET reviews your submission and issues the permit.

Step 5: Print & Display Your Permit QR Code

• Print the official permit QR/barcode and affix it visibly at the property (usually near the DEWA plate).
• This barcode verifies to inspectors and guests that your property is DET-approved.

Step 6: List Your Property on Airbnb, Booking.com, or Other OTAs

• Add your DET-issued permit number to your listing description.
• OTAs like Airbnb require this for all Dubai holiday home license listings.

Step 7: Launch and handle Guest Check-ins & Tourism Dirham

• Before each check-in, register guest details in the DET Holiday Homes Check-In system.
• Every month, remit collected Tourism Dirham fees (AED 10 or AED 15 per occupied bedroom per night).

Dubai Visas & Residency – (Individual, Family, and Staff Visa)

If you’re planning to grow your holiday home business in Dubai, understanding your visa options is crucial. The ability to sponsor visas depends entirely on whether you operate as an individual host or a licensed professional operator under a company.

• Individual Track (≤8 Units, No Trade Licence): No — you’re not a registered corporate entity, so you don’t have a visa quota. Under this model, your holiday home license in Dubai only permits property rentals, not visa sponsorship or hiring.
• Professional Operator (With Trade Licence): Yes — if you hold a valid mainland or eligible free zone trade licence for “Vacation Homes Rental”, your company can sponsor Investor, Partner, or Employee Visas.

To qualify, you’ll need a valid Ejari office lease, an establishment card, and to meet the standard visa quota system.

💡 This makes professional incorporation the best path for investors and non-resident entrepreneurs exploring how to start a holiday home business in Dubai — it grants both residency and business privileges.

Business Banking for Holiday Home Operators in Dubai

Once your Dubai holiday home license is active, you’ll likely need a UAE business bank account — especially if you manage multiple properties, process OTA payouts, or receive funds from landlords and guests.

If you’re running as a professional operator, most banks in Dubai will ask for:

• A valid trade licence (showing “Vacation Homes Rental” activity)
• Memorandum of Association (MoA) or incorporation documents
• Board resolution (if applicable)
• Proof of UAE address via Ejari tenancy contract
• Shareholder identification (passport, visa, Emirates ID)
• Some banks may require at least one resident signatory on the account.

Common providers like Emirates NBD and Mashreq NEO Biz openly publish eligibility requirements — both support small business accounts for holiday homes operators and property management firms.

💡 If you’re operating on the “individual track” with ≤8 units, OTA platforms like Airbnb can pay directly to your personal account. But once you scale or manage other owners’ properties, a dedicated corporate bank account keeps your business funds clean, compliant, and audit-ready.

Timeline: How Long It Takes to Get Holiday Home License in Dubai

Setting up a holiday home business in Dubai is faster than most people think — especially with your documentation ready and your structure clear (individual or company). 

Here’s a realistic timeline for going from zero to your first booking under a valid Dubai holiday home license:

• Operator Registration: Usually completed within 2–4 business days, provided your documents (Trade Licence, DEWA Bill, Title Deed, and OA NOC) are in order. This step registers you officially with the Dubai Department of Economy & Tourism (DET) under the Dubai holiday home license framework.
• Unit Permit Approval: Once your operator account is active, each property you list must receive its unit permit. These are typically issued within 3–7 working days after uploading documents and paying the per-bedroom permit fees.
• Company Formation & Trade Licence: For professional operators or non-resident investors, mainland company setup and trade licence issuance take 5–7 business days on average once initial approvals and name reservations are complete. This is essential if you’re planning to scale, hire staff, or open a corporate account.
• Bank Account Opening: After your trade licence is active, expect 1–2 weeks for bank compliance and onboarding — especially if you’re a foreign-owned company. This step allows you to receive Airbnb and Booking.com payouts directly into your UAE business account.

Total Go-Live Window: From incorporation to your first guest check-in, a well-prepared operator can go fully live in 2–3 weeks — covering company formation, trade licence, banking, DET registration, and property permit approvals.

Taxes & Government Charges for Holiday Home License in Dubai

When setting up your holiday home business in Dubai, you’ll deal with a few fixed government charges and straightforward taxes. The city’s system is designed to be transparent and business-friendly — no hidden surprises, just predictable costs tied to your Dubai holiday home license and its operation.

Tourism Dirham (tourism tax or fee): Every guest pays a nightly fee that you collect and remit to the DET. This isn’t income tax — it’s a tourism levy. You simply collect it and pay it forward monthly as part of your holiday homes license in Dubai cost obligations.

• Standard units: AED 10 per occupied bedroom per night
• Deluxe units: AED 15 per occupied bedroom per night
• Capped at 30 nights per continuous stay

VAT (5%): Short-term accommodation falls under hospitality services. Once your turnover exceeds AED 375,000 annually, VAT registration becomes mandatory.

• You’ll charge 5% VAT on room rates, service fees, and add-ons.
• VAT must be remitted quarterly to the Federal Tax Authority (FTA).
• Long-term residential rentals are exempt, so don’t mix them with your holiday home license in Dubai activity.

Corporate Tax (9%):

• Natural Persons: Income that qualifies as real estate investment is outside Corporate Tax (CT). You only fall within CT scope if your annual business turnover exceeds AED 1 million.

Companies (Professional Operators): Standard CT rate of 9% on net profits above AED 375,000 applies, with possible free-zone incentives or exemptions. Proper bookkeeping ensures you stay compliant while optimising for tax efficiency.

Bottom Line

When you look at the full picture, the holiday home license in Dubai ecosystem is built for serious entrepreneurs — transparent costs, quick licensing, and predictable compliance. Your main expenses are clear (DET fees, VAT, and guest-paid Tourism Dirham), and even the Dubai holiday home license cost 2025 remains extremely competitive compared to global short-term rental hubs like London or New York.

There’s no income tax, no local sponsor requirement, and a business-friendly framework that rewards speed and professionalism. Once your company formation and trade licence are complete, you can open a UAE business bank account, start onboarding properties, and even sponsor staff or apply for investor visas.

But the real key to success is ongoing compliance (and this is critical).

Renew your holiday home license in Dubai every year, charge and remit the Tourism Dirham correctly, and use the DET Holiday Homes Check-In System to register all guest arrivals and departures.

Make sure every property under your holiday homes license in Dubai meets DET safety standards — install smoke alarms, a fire extinguisher, and a first-aid kit, and display the official QR permit clearly at the property entrance.

Keep your house rules aligned with building regulations: no parties, no excessive noise between 10 PM and 8 AM, and restricted visitor access.Violations can attract serious fines — hundreds to tens of thousands of dirhams — for unregistered guests, safety breaches, or expired permits.

Staying compliant with your holiday home license in Dubai means more than ticking boxes — it’s about protecting your business and reputation while keeping guests safe and regulators happy.

With Binderr, you can have it all handled — from company setup and trade licensing to bank account opening, DET registration, and renewal management. We make sure your holiday home business in Dubai runs smoothly, legally, and profitably — so you can focus on hosting, scaling, and earning.

Holiday Home License Dubai FAQs