Holiday Home License Dubai: Requirements, Costs and Application Process
To run a holiday home in Dubai, the owner or a licensed operator must register with the Department of Economy and Tourism (DET), formerly DTCM, and get a holiday home permit for each apartment or villa before taking short-stay guests. DET's published fee for a new unit permit is AED 300 per bedroom, plus AED 70 in classification, knowledge and innovation fees, up to a maximum of AED 1,200 per holiday home each year. Permits last one year and must be renewed before they expire.
This guide is for owners, landlords and investors who are weighing up short-term letting. It covers who can apply, which properties qualify, the documents DET asks for, the fees, renewals, the Tourism Dirham and the mistakes that cause problems later. Requirements and fees are taken from DET's own service pages and the Dubai legislation portal, as published in October 2026.
What is a holiday home permit in Dubai?
Under Administrative Resolution No. 1 of 2020, a holiday home permit is the document DET issues to approve a furnished residential unit as a holiday home, once the unit meets the conditions for its classification. It is separate from an ordinary annual tenancy registered in Ejari.
People often say "holiday home licence" when they mean the permit, but there are three different approvals:
- Holiday Homes System registration, which sets up the owner's or operator's account with DET.
- A trade licence, which only professional operators need. Its listed activity must be Vacation Homes Rental.
- The holiday home permit, which is issued for each individual unit.
One does not replace another. An owner with a registered account still needs a permit for every unit they let out, and an operator's trade licence does not cover a unit that has no permit.
Who can apply?
DET's registration service is open to two groups.
Individual owners
An owner can register and let out their own property. The name on the account must match the name on the title deed. DET limits homeowners to 8 holiday home units.
Professional holiday home operators
Companies that manage holiday homes for owners need a trade licence that lists Vacation Homes Rental as an activity. When an operator applies for an owner's unit, DET asks for a Property Management Letter on its template. The permit's issue and expiry dates must match the dates in that letter.
If you are thinking about appointing an operator, ask to see the trade licence and check the activity on it before you sign anything.
Which properties are eligible?
Not every apartment or villa can become a holiday home. Article 8 of Administrative Resolution No. 1 of 2020 says the unit must be in an area where DET permits the activity, and must be one of the following:
- an apartment in a building designated for holiday homes
- an apartment in a residential building
- a house or villa in a residential compound
- an independent villa
The unit must also meet the technical, furnishing and equipment standards for its classification. DET's service pages add three restrictions that catch owners out:
- Hotel and hotel apartment buildings are excluded. Holiday homes are not permitted in them.
- Your sale and purchase agreement (SPA) matters. If the SPA does not allow holiday home use, you are not eligible for a permit.
- A developer NOC may be required. This depends on the building and the developer.
Before spending money on furniture or photography, read your SPA, check the building's rules and ask the developer whether an NOC is needed.
Documents required
DET's new permit service lists these documents:
| Document | When it is needed |
|---|---|
| Title deed, or a copy of the DLD-approved sale and purchase agreement | Always |
| Developer NOC | If applicable |
| Signed passport copy or Emirates ID of the landlord | Always |
| Trade licence copy | If the landlord is a company |
| Emirates ID or passport copy of the authorised signatory | Always |
| Property Management Letter (DET template) | Always (the operator's dates must match the permit) |
| Current DEWA bill | Always |
A few practical points from the same page:
- Enter the DEWA premise number in the application, not the account number.
- If an attorney or representative signs the Property Management Letter, attach the Power of Attorney and the representative's passport copy.
- If one title deed covers a whole building, DET may ask for extra documents, such as the building completion certificate and a landlord NOC.
How to apply, step by step
- Check eligibility. Confirm the location, the building type, your SPA and whether you need a developer NOC.
- Register on the Holiday Homes System. Owners register in their own name; operators register with their trade licence.
- Register the unit. Add the apartment or villa and enter its details, including the DEWA premise number.
- Upload the documents. Make sure the names, dates and unit details match across every document.
- Confirm the declaration and self-classify. You classify the unit against DET's standards. The classification decides the Tourism Dirham rate.
- Pay online. The fee is paid through the Holiday Homes portal.
- Display the permit. By law the permit must be displayed inside the unit.
DET's service delivery time for a new unit permit is one business day. That covers DET's processing step only. Collecting the documents, getting a developer NOC and furnishing the unit to standard usually take much longer.
How much does a holiday home permit cost?
DET lists the new unit permit fee as AED 300 per bedroom, plus AED 50 for the holiday home classification certificate, AED 10 knowledge fee and AED 10 innovation fee, up to AED 1,200 per holiday home each year.
| Bedrooms | New permit fee (DET formula) |
|---|---|
| 1 bedroom | AED 370 |
| 2 bedrooms | AED 670 |
| 3 bedrooms | AED 970 |
| 4 bedrooms or more | Up to AED 1,200 (DET's annual cap) |
There are three other charges you should not confuse with the permit fee:
- Registration on the Holiday Homes System. DET lists a fixed registration charge of AED 1,500 plus AED 20 in knowledge and innovation fees (AED 1,520). This is a charge for registration, not for each unit. Check on the portal whether it applies to your account, for example if you already have one.
- Trade licence costs. These apply only to professional operators and are set by the licensing authority, not by the permit fee.
- Tourism Dirham. This is charged to guests per room per night (see below). It is not a permit fee.
Budget separately for furniture, linen, cleaning, maintenance, utilities, internet, platform commission and management fees. These usually cost far more than the government fees.
Renewing a holiday home permit
Permits are issued for one year and must be renewed before they expire. Renewal is not automatic, and DET assesses each renewal against its current policies. The renewal service fee is AED 300 per bedroom per year plus AED 20 in knowledge and innovation fees, up to AED 1,200 per unit. For a one-bedroom unit that is AED 320.
To renew, log in to the portal, choose renewal, upload any updated documents, self-classify the unit again and pay. Three rules to keep in mind:
- A new owner cannot renew the old permit. If the unit is sold, or its DEWA account changes, the unit must be registered again as a new unit.
- The operator's letter must be updated. The Property Management Letter has to show the new permit dates.
- The renewed permit must be displayed in the unit.
Put the expiry date in your calendar with a reminder at least a month ahead, so bookings are not interrupted.
Tourism Dirham and guest registration
Once a unit is operating, the permit holder collects the Tourism Dirham from guests and pays it to DET. The rate is charged per room per night, regardless of the number of guests:
| Classification | Tourism Dirham |
|---|---|
| Deluxe holiday home | AED 15 per room per night |
| Standard holiday home | AED 10 per room per night |
For stays longer than 30 consecutive nights, the charge applies only to the first 30 nights. Tourism Dirham details must be entered on DET's system by the 15th of every month; late fees apply after that date. DET's portal also handles guest check-in and check-out, which forms part of running the unit lawfully.
Can you list your property on Airbnb without a permit?
No. Decree No. 41 of 2013, which regulates holiday homes in Dubai, does not allow anyone to carry out the activity without DET authorisation. The implementing resolution requires licensees to show their permit number in all print and digital advertisements. A listing on a booking platform is not a substitute for a DET permit.
Breaking the rules carries fines. Under the Decree, a violation is punishable by a fine of AED 200 to AED 20,000. The fine doubles if the same violation is repeated within a year, up to a maximum of AED 100,000. DET can also issue warnings or suspend the activity.
Is a holiday home more profitable than long-term renting?
Sometimes, but a higher nightly rate does not guarantee a higher net return. As a simple illustration, a unit advertised at AED 500 a night that is booked for 18 nights in a 30-day month (60% occupancy) earns AED 9,000 in gross bookings. That is a worked example, not a market estimate. It is before platform commission, management fees, cleaning, utilities, furnishing, repairs, the Tourism Dirham and empty periods.
The fairer test is annual net income for both options. We compare the two models in more detail in our article on short-term vs long-term rentals in Dubai. For the long-term side of the comparison, you can calculate your rental yield on a standard annual tenancy.
Common mistakes owners make
- Furnishing first, checking later. An SPA restriction or a hotel apartment building can rule the unit out before you start.
- Treating registration as the permit. A registered account or an operator's trade licence does not approve an individual unit.
- Missing the renewal. Permits expire after a year and are not renewed automatically.
- Forgetting the Tourism Dirham. Monthly entries are due by the 15th, and late fees apply after that.
- Projecting income from nightly rates alone. Occupancy, seasonality and running costs decide the real return.
Should you manage it yourself or appoint an operator?
Self-management can work if you live in Dubai, know the rules and have time to handle bookings, guest check-in, cleaning, maintenance and monthly Tourism Dirham entries. An owner with several units, or one who lives overseas, often finds a licensed operator more practical.
Before you appoint one, agree in writing who handles the permit and renewal, guest registration, the Tourism Dirham, cleaning, maintenance and reporting, and what the fees are.
If you decide that a conventional annual tenancy suits you better, Seven Century manages long-term lettings for owners. That covers tenant search, Ejari, rent collection and maintenance coordination. See our landlord services, and read who pays for property maintenance in Dubai to understand long-term landlord responsibilities. Our property management service is for long-term tenancies.
Final thoughts
A holiday home can be a sensible strategy for the right property, but approval comes first. Confirm that your unit is eligible, register with DET, get the permit before you advertise and plan for renewals and monthly Tourism Dirham returns. Then compare the realistic net return with a long-term tenancy before you decide.
If you would like help comparing the options for your Dubai property, contact our property team.
This article is general information based on DET and Dubai legislation sources as published in October 2026. It is not legal advice. Fees and requirements can change, so check the current DET holiday homes regulation guide and the Holiday Homes System before applying.