Dubai property owners may rent apartments and villas to short-stay guests, provided the property is registered and approved by the Dubai Department of Economy and Tourism (DET) before it is advertised or used as a Holiday Home.
For owners, compliance extends beyond obtaining a unit Permit. Property eligibility, title and community restrictions, insurance, safety and security, guest registration, advertising and applicable Tourism Dirham and tax obligations must all be addressed.
Dubai holiday home regulations are principally based on Decree No. (41) of 2013 Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai, together with Administrative Resolution No. (1) of 2020, which issued its Implementing Bylaw. The activity is now administered by the Dubai Department of Economy and Tourism (DET). Older legislation refers to the Department of Tourism and Commerce Marketing, or DTCM; Law No. (20) of 2021 transferred its functions and obligations to DET.
Holiday Home vs. Standard Residential Tenancy
Holiday Home accommodation is a licensed tourism use rather than a conventional residential tenancy. The length of the stay is not decisive, as Holiday Homes may be let daily, weekly, monthly or annually. However, a separate lease between the owner and a licensed operator may still be subject to applicable tenancy and contractual rules.
What Counts as a Holiday Home in Dubai?
A holiday home is a furnished real property unit designated for the regulated holiday-home activity. The activity covers the regular and ongoing leasing of holiday homes to guests, as well as taking units on lease for the purpose of subletting them to guests.
Permit eligibility depends on the property’s type, location and title documents. Residential apartments and villas may qualify, while hotel rooms and hotel apartments do not. Special requirements apply to villas and farms in Hatta, and any unclear, whole-building or mixed-use property should be confirmed with DET before advertising.
A unit must be located in an area where DET, in coordination with the competent authorities, authorizes holiday-home activity. The applicant must also establish the legal right to use the property for that purpose, and the property’s sale and purchase agreement must not contain an express provision preventing its use as a holiday home.
A holiday home must also be rented as a complete unit. Renting individual rooms or bed spaces separately is prohibited and is itself a specified regulatory violation.
Dubai Short-Term Rental License and DET Permit Requirements
Dubai’s framework distinguishes between the license to conduct the holiday-home activity and the permit approving a particular furnished unit as a holiday home.
Under the current DET Holiday Home Guide, an individual owner may apply for up to eight unit Permits at one time. To manage additional units, the owner must obtain the appropriate company Licence or place the additional units with a company licensed for Holiday Home activity. The eight-unit limit is a current DET administrative requirement rather than a number stated in the Decree itself.
Professional operators must be licensed for Holiday Home activity. The owner-company contract should comply with the current DET Guide and address the Permit period, income allocation, Permit, maintenance and insurance costs, authority, termination, owner use and handover of the unit. The parties should also allocate responsibility for bookings, Tourism Dirham, guest complaints, security deposits, records and transition on termination.
Where a licensed Holiday Home company manages the unit, the contract between the owner and the company may not exceed one year, and the unit Permit may not extend beyond the contract’s expiry date.
Executive Council Resolution No. 49 of 2014 sets the unit-Permit fee at AED 300 per bedroom annually, capped at AED 1,200 per Holiday Home, plus an AED 50 classification fee and other applicable charges. However, Dubai approved temporary 2026 exemptions from Holiday Home permit and licence fees, with implementation timing left to DET. Applicants should therefore confirm current charges in the DET system before applying or renewing.
Can a Building or Community Restrict Holiday-Home Use?
Where a Holiday Home is properly licensed and permitted, Article 17 of the 2020 Bylaw requires developers, jointly owned property owners, property managers and relevant service providers to facilitate its operation. DET guidance also states that building management should allow operators and guests access and refer complaints to DET without delaying an arriving guest.
This does not allow owners or operators to ignore the property’s governing documents or building rules. SPA restrictions, RERA-approved Building Management Regulations and lawful rules on access, security, parking, noise and common areas may still apply. The relevant documents and circumstances should therefore be reviewed before concluding that building management can prevent the activity, or that an operator can disregard community rules
Holiday Home Landlord Requirements in Dubai
Obtaining a holiday-home permit is only the first step. Owners and operators must continue to comply with DET requirements throughout the period in which the property is used for short-term accommodation.
Security. QR Codes and Advertising
Insurance and safety are continuing obligations. The Licensee must hold comprehensive insurance from a Dubai-licensed insurer, covering damage guests may sustain throughout the Licence term. The property must also meet applicable DET, safety, security, building and community requirements, while villas and farms should follow Dubai Municipality’s 2025 Holiday Home health and safety guidelines.
Holiday Homes must have a SIRA-approved smart lock on the main entrance connected to the Keyless system. Operators must also use a SIRA-approved smart-lock application and provide a securely fixed, SIRA-approved safe. It is therefore important to confirm the current specifications before installation.
Each Holiday Home must display the QR code generated through Holiday Homes 2.0 as a 5 cm x 5 cm laminated vinyl sticker below the DEWA premises plaque on the outside of the unit door. Online and printed advertisements must include the licensee’s approved trade name and the unit permit number. Any applicable Tourism Dirham must be described as a fee, not a tax.
Guest Registration and Records
Guests must be registered through the applicable holiday-home system, and the required check-in and check-out information must be recorded within the prescribed timeframe.
A holiday-home contract must be provided to the guest together with the applicable house rules. Emergency and guest-service contact details must also be available throughout the stay.
Guest records must generally be retained for at least three years, while records relating to Tourism Dirham obligations are subject to a longer retention period.
Tourism Dirham and Tax Obligations
Holiday Home stays are subject to Tourism Fee at AED 15 per occupied bedroom per night for Deluxe properties and AED 10 for Standard properties. The fee applies for up to 30 consecutive nights and is calculated by occupied bedrooms, not by the number of guests. Collected fees must be paid by the prescribed monthly deadline, and related records must be retained.
VAT may also apply. Mandatory VAT registration generally arises where taxable supplies and imports exceed AED 375,000, subject to the applicable registration tests.
Corporate Tax can also be relevant where an individual personally operates a holiday home under a DET license. In that case, the activity may constitute a Business or Business Activity for Corporate Tax purposes, with the AED 1 million annual turnover threshold for natural persons potentially applying.
The tax position may differ where the property is leased to a separately licensed holiday-home operator, so the operating structure should be reviewed separately.
Risks of Operating Without a Permit
Operating a holiday home without the required approvals may result in fines and further enforcement action.
| Violation | Fine |
| Conducting holiday-home activity without the required license | AED 5,000 |
| Leasing a holiday home without DET approval | AED 2,000 |
| Failing to maintain the required insurance | AED 2,000 |
| Renting individual rooms or bed spaces | AED 500 |
If the same violation is repeated within one year, the fine may be doubled, subject to a maximum of AED 100,000. DET may also issue a warning, suspend the activity for up to six months, revoke the license, or suspend or revoke a unit permit where applicable requirements are no longer met.
Enforcement may also affect existing operations, including property listings, upcoming reservations, Tourism Dirham obligations and guest arrangements.
What Dubai Landlords Should Do Before Listing
Holiday-home letting is a lawful and established use of residential property in Dubai, but only where the owner and property comply with DET’s licensing and permitting framework. Before advertising a unit, an owner should confirm the property’s eligibility and SPA position, decide whether to operate personally or through a licensed holiday-home company, obtain the required license and unit permit, and put the necessary insurance, safety, guest-registration, recordkeeping and Tourism Dirham procedures in place.
Particular care is warranted where the SPA contains use restrictions, building management objects to the activity, several properties are being operated, or the owner’s VAT or Corporate Tax position may be affected.
A polished listing cannot cure a weak legal foundation. Kisser Legal’s real estate and property lawyers in Dubai can review the relevant property documents, operating structure and contractual arrangements before a property is placed into holiday-home use. For advice concerning a specific property, contact Kisser Legal.