Letting a Dubai apartment as a holiday home: who needs a DET permit, what it costs and when short-term rent beats a long lease

Do you need a holiday home licence in Dubai?

Yes: anyone who regularly lets a furnished Dubai home to short-stay guests needs a holiday home licence from DET, whether the host is an individual owner or a company. Article 3 of Decree No. 41 of 2013 states that no natural or legal person may conduct the activity without being licensed by the department. DET’s service page adds that all apartments and villas must be registered and approved by DET before they are listed on any booking platform.

Once licensed, a holiday home may be let “on a daily, weekly, monthly, or annual basis” under Article 8 of the decree, but it must be let as a whole, not room by room or bed by bed. Renting out a spare bedroom to travellers is therefore not a holiday home under Dubai rules, and a holiday home permit will not cover it.

The legal basis has three layers, and it helps to know which one a rule comes from:

Instrument	What it sets
Decree No. 41 of 2013	The licence requirement, operating duties and the fine range
Executive Council Resolution No. 49 of 2014	The fee schedule and the list of fines
Administrative Resolution No. 1 of 2020	The implementing bylaw: permits per unit, documents, host obligations

The regulator is still called the DTCM in these texts. It is now DET, the Dubai Department of Economy and Tourism, and hosts often search for a “DTCM holiday home permit”. Both names refer to the same authority and the same portal.

Holiday home licence vs unit permit: two documents

A holiday home licence authorises a host to run the activity, while a holiday home permit approves one specific furnished unit. Administrative Resolution No. 1 of 2020 defines the permit as “a document issued by the DTCM stating that the DTCM approves that a furnished real property unit be designated as a Holiday Home”. A host with three apartments holds one account and three permits, one for each holiday home.

There are two ways to be licensed:

• As an individual owner. You register your own unit on the DET Holiday Homes portal. DET requires the name on the account to match the name on the title deed.
• As a professional operator. A company registers with DET and manages units for owners. DET requires the trade licence activity to be “Vacation Homes Rental”, and it lists fixed registration charges of AED 1,500 plus AED 10 knowledge and AED 10 innovation fees.

For a single apartment, owners usually choose between registering themselves and handing the unit to a licensed operator. The operator then holds the permit and the obligations towards guests, and the owner receives the net rent under a management contract. What this choice means for tax is covered in the tax section.

How to get a holiday home permit in Dubai, step by step

A holiday home permit in Dubai is issued online through the DET Holiday Homes portal, and DET states that applications are reviewed within one business day. The unit must be ready for guests when you apply, because the permit is issued for a furnished holiday home.

The five steps DET lists for an individual host:

1. Log in to the Holiday Homes portal. Create a host account first if you do not have one.
2. Add the unit. Enter the building, unit number and the DEWA account number. DET warns applicants to enter the DEWA account number, not the premises number.
3. Upload supporting documents. See the document list below.
4. Review and submit. Check the details before sending the application.
5. Pay and self-classify after approval. The bylaw has the fee paid once the application is approved, and the amount depends on the number of bedrooms (see fees). The host then classifies the home as standard or deluxe, which sets the Tourism Dirham rate.

Once the holiday home is approved, the permit number has a practical use. Article 14(13) of the bylaw requires the host to show the permit number in every print and digital advertisement, and a 2023 DET rule requires a QR code at the main entrance of each holiday home.

Documents and building NOC

The documents DET asks for are the title deed and the owner’s passport or Emirates ID, plus a no-objection certificate (NOC) from the developer where one applies. DET’s service pages list:

• the title deed, or a signed passport copy or Emirates ID of the landlord;
• a copy of the trade licence if the unit is owned by a company;
• a no-objection certificate from the developer, if applicable;
• for operators managing someone else’s unit, the building completion certificate and a landlord NOC that states the number of units managed;
• the DEWA account number for the unit.

The bylaw adds two conditions that matter before you buy. The applicant must prove the right to dispose of the unit, and the sale and purchase agreement (SPA) must not contain a clause that forbids holiday home use. Article 17 of the same bylaw requires developers, owners associations and property management firms to “enable Licensees to conduct the Activity”, so a building cannot simply refuse a licensed host. A clause in your own SPA is a different matter, and DET can also refuse a permit on the unit’s location or category. If you are buying an off-plan unit to let short-term, read the SPA and the community rules before you pay the deposit. The check applies both to off-plan projects, where the developer’s SPA sets the rules, and to ready secondary homes, where you inherit the original SPA and the community rules.

DET holiday home fees in 2026

The DET permit fee for a holiday home is AED 300 per bedroom, capped at AED 1,200 per home a year, plus AED 50 for the classification certificate, under Executive Council Resolution No. 49 of 2014. DET quotes the total for a new one-bedroom permit as AED 370, including AED 10 knowledge and AED 10 innovation fees.

Fee	Amount	Source
Unit permit, new or renewal	AED 300 per bedroom, up to AED 1,200 per home a year	Resolution 49/2014, item 11
Classification certificate	AED 50 per home	Resolution 49/2014, item 16
Knowledge and innovation fees	AED 10 + AED 10	DET service page
Inspection	AED 300 per home	Resolution 49/2014, item 12
Licence: initial approval / new licence or renewal	AED 100 / AED 500	Resolution 49/2014, items 1–2
E-programme subscription (DET lists it as operator registration)	AED 1,500	Resolution 49/2014, item 9; DET operator page
Permit cancellation	AED 70	DET customer journey guide

In words: a one-bedroom unit costs AED 370 to permit and a two-bedroom unit AED 670, because only the bedroom fee rises. From four bedrooms the bedroom fee hits the AED 1,200 cap. The permit is valid for one year and must be renewed before it expires, and DET states that operator accounts have no renewal fee, although trade licence details should be updated every year. The resolution lists licence fees for every licensee, while DET’s permit page quotes only the AED 370 per-unit total for a one-bedroom unit, so check on the portal which charges apply to your account type.

These are the regulator’s holiday home fees only. Furnishing, cleaning, linen, utilities, platform commission and a management fee usually cost far more than the permit. They are covered in the worked comparison.

Tourism Dirham and guest rules

Every holiday home in Dubai collects a Tourism Dirham fee of AED 15 per bedroom per night for a deluxe unit and AED 10 for a standard unit, under Executive Council Resolution No. 2 of 2014 as amended. The host charges it to the guest and pays it to DET before the 16th of the following month.

Three rules set how much you collect:

• Per bedroom. Administrative Resolution No. 2 of 2020 says that when a unit has more than one bedroom, the fee applies to each room per night.
• 30-night cap. DET says that for stays longer than 30 consecutive nights, the Tourism Dirham is calculated for the first 30 nights only.
• Category. The standard or deluxe category you choose after approval decides whether AED 10 or AED 15 applies.

The bylaw also sets guest-side duties. The host must pass guest information to DET, keep records of all guests for at least three years and respect the maximum occupancy written on the permit. The permit terms and occupancy limit bind the host, and not complying with the permit terms carries a fine (see fines).

Fines for letting without a holiday home permit

Letting a holiday home in Dubai without a licence carries a fine of AED 5,000, and leasing a unit without DET’s prior approval carries AED 2,000, under the schedule of Resolution No. 49 of 2014. Decree No. 41 of 2013 sets the overall range: from AED 200 to AED 20,000 per violation, doubled for a repeat within one year, up to AED 100,000.

Violation (Resolution 49/2014)	Fine
Conducting the activity without a licence	AED 5,000
Leasing holiday homes without DET’s prior approval	AED 2,000
Providing false or incorrect information	AED 5,000
Not complying with the terms of the permit	AED 500
Not leasing the home as a whole	AED 500
Repeat within one year	Doubled, up to AED 100,000

Besides fines, the decree allows DET to issue a warning, suspend the activity for up to six months or cancel the licence. The fine amounts in circulation online differ. Some sources quote ceilings of AED 200,000, but we found no legal text that supports that figure. The ceiling in the decree and the resolution is AED 100,000.

VAT and corporate tax on short-term rental income

The UAE levies no personal income tax, but holiday home income can fall under VAT and corporate tax, because short stays are not treated like a residential lease and a DET permit counts as a licence for tax purposes.

• VAT. The Executive Regulation exempts residential leases only when the lease runs for more than six months or the tenant holds an Emirates ID (Article 43). Hotel apartments and serviced apartments are excluded from “residential building” (Article 37). Stays of a few nights to visitors therefore sit outside the exemption. Registration becomes mandatory when taxable supplies exceed AED 375,000. Below that threshold a host is not required to register.
• Corporate tax. Cabinet Decision No. 49 of 2023 excludes an individual’s real estate investment income only when the activity is not conducted, and does not need to be conducted, through a licence. The Federal Tax Authority’s guide on real estate investment for natural persons says a DET document permitting an individual to lease holiday homes “would constitute a relevant Licence”. An individual who holds a holiday home permit is therefore in corporate tax scope once their business turnover passes AED 1,000,000 in a calendar year.

The guide does not settle the case of an owner who lets through a licensed operator and holds no permit personally. If your turnover could approach either threshold, ask a UAE tax adviser before you choose between self-registration and an operator. Residents of other countries also owe tax at home. Your home country decides how rental income from Dubai is taxed, and a UAE exemption does not change that.

Tenants, subletting and the shared housing law

A tenant in Dubai cannot let a rented flat to holiday guests without the landlord’s written consent: Article 24 of Law No. 26 of 2007 forbids subletting to third parties unless the landlord agrees in writing. Subletting without that consent is also a ground for eviction under Article 25.

The 2020 bylaw accepts an application from “the owner or tenant”, but only with proof that the applicant has the right to dispose of the unit. Because Article 24 of the tenancy law requires the landlord’s written consent to any sublease, a tenant in practice needs that consent in hand before applying.

Shared housing follows a separate regime. Law No. 4 of 2026, in force since 26 August 2026, requires a Dubai Municipality permit to allocate a unit to shared housing. According to the Dubai Media Office announcement, tenants may not sublease any part of such a unit, fines run from AED 500 to AED 500,000 and double for a repeat up to AED 1 million, and existing units have one year to comply. We found no official statement on whether the law touches short-term lets. A licensed unit is let as a whole to one party, which is not the model the shared housing law describes.

Myths about short-term rental in Dubai

The belief that listing an apartment on a booking platform is enough to host legally in Dubai is wrong: DET requires every unit to be registered and approved before it is listed. Other common beliefs also fail against the texts:

• “The building can simply block me.” A developer or owners association must enable licensed hosts under Article 17 of the bylaw. A permit can still be refused on other grounds, such as an SPA clause against short-term letting or the unit’s location and category, so read the SPA first.
• “There is no tax at all.” There is no personal income tax, but VAT applies above AED 375,000 of taxable supplies, and the FTA treats a DET permit as a licence for corporate tax.
• “A permit costs thousands.” The unit permit is AED 370 for one bedroom and the bedroom fee is capped at AED 1,200 a year. Larger figures online often add the AED 1,500 e-programme subscription or an operator’s service charges.
• “Short-term always earns more.” Gross nightly revenue is not comparable with a long-term rent until occupancy, management, cleaning and utilities are deducted (see the comparison).
• “A tenant can host if the landlord doesn’t mind.” The consent must be in writing, and the tenant still needs the permit.

Short-term vs long-term rental: one unit, two results

Short-term rental in Dubai beats a long lease only when occupancy stays high enough to cover management and running costs. On our illustrative one-bedroom unit, the break-even is 64.6% occupancy. AirDNA data reported by Emirates 24|7 put Dubai’s average short-term occupancy at 69% for the twelve months to August 2026, with an average booked rate of USD 178 a night.

The inputs below are assumptions, not market data for a specific building. Replace them with your own quotes.

Assumption (illustrative)	Short-term rental	Long-term lease
Nightly rate / annual rent	AED 500 a night	AED 80,000 a year
Management and letting cost	20% of revenue	5% of the rent
Running costs paid by owner	AED 18,000 a year (utilities, internet, cleaning supplies, wear)	Paid by tenant
DET permit	AED 370	—
Service charge	Same for both, left out	Same for both, left out

Owner’s net before service charge, by occupancy:

Occupancy	Short-term gross	Short-term net	Long-term net
50%	AED 91,250	AED 54,630	AED 76,000
60%	AED 109,500	AED 69,230	AED 76,000
69%	AED 125,925	AED 82,370	AED 76,000
75%	AED 136,875	AED 91,130	AED 76,000

In words: at 50–60% occupancy short-term letting earns less than the lease. At the reported market average of 69% it earns about AED 6,000 more a year, and at 75% about AED 15,000 more. The Tourism Dirham is collected from guests and passed to DET, so it does not change the owner’s net. VAT would reduce the short-term figure if the host is registered.

One market fact affects the long-lease side. Cushman & Wakefield Core reported that Dubai rents fell 6% quarter on quarter in Q2 2026, which lowers the long-term benchmark in the table. If you are choosing a unit for this model, compare a few buildings in current projects rather than relying on a citywide average. If you plan to finance the purchase, check the lender’s terms before you model the rent: our guide to getting a mortgage on an off-plan property in Dubai covers the down payment and the bank’s conditions.

Pros and cons of a holiday home licence

The main advantage of short-term rental in Dubai is flexible, potentially higher income, and the main drawback is that the owner carries occupancy risk and operating work.

Pros:

• The permit is quick and cheap: DET says it reviews applications within one business day, and a one-bedroom permit costs AED 370.
• The owner keeps the unit available for personal stays between bookings.
• Developers and owners associations must enable licensed hosts under the bylaw.
• Pricing can follow demand night by night instead of being fixed for a year.

Cons:

• Income depends on occupancy. In our example, short-term letting earns less than a lease below about 65%.
• Running costs sit with the owner: utilities, cleaning, linen and furnishing wear.
• Compliance continues after approval: guest data to DET, three-year records, permit number in adverts, a QR code at the door and Tourism Dirham returns.
• A licensed individual host can fall into VAT or corporate tax thresholds that a long-lease landlord never meets.

Who a holiday home licence is not a good fit for

A holiday home licence does not suit an owner whose unit cannot reach about 65% occupancy at a realistic nightly rate, because below that point a long lease pays more in our model. Other cases:

• A tenant without written landlord consent. Subletting without it breaks Article 24 of the tenancy law and is a ground for eviction.
• An SPA that forbids short-term letting. The bylaw requires the SPA not to exclude holiday use, so the permit will not be issued.
• An owner abroad who plans to self-manage. Guests, check-ins, cleaning and guest data to DET need someone in Dubai every day. Budget for an operator instead.
• An owner who needs a stable, predictable income. A long lease locks the rent for a year. Short-term letting trades that certainty for variable income.

Methodology and sources

Every fee, fine and rule in this guide was checked on 25 September 2026 against Dubai legislation, DET service pages and UAE federal tax texts. DET’s own service pages load only in a browser, so for them we used the page text as indexed by Google on 25 September 2026 and cross-checked amounts against the fee schedule in Resolution No. 49 of 2014. Market figures are attributed to the named data provider and outlet. The short-term vs long-term calculation is our own model with assumptions stated in the table. We did not use listing portals or agency blogs as sources.

Sources:

• Decree No. 41 of 2013 Regulating the Activity of Leasing out Holiday Homes; Executive Council Resolution No. 49 of 2014 (fees and fines); Administrative Resolution No. 1 of 2020 (implementing bylaw); Executive Council Resolution No. 2 of 2014 on the Tourism Dirham; Law No. 26 of 2007 on landlord–tenant relations: Dubai Legislation Portal.
• DET: Apply for a holiday home permit; Issue a new Holiday Homes permit; Renew a Holiday Homes permit; Register as a Holiday Home Operator; Holiday Homes customer journey guide.
• Dubai Media Office: QR codes for holiday homes (29 May 2023); Law No. 4 of 2026 on shared housing (11 March 2026). Gulf News and The National on the law’s entry into force (26 August 2026).
• UAE Ministry of Finance: VAT Executive Regulation (Cabinet Decision No. 52 of 2017, consolidated); Cabinet Decision No. 49 of 2023. Federal Tax Authority: Corporate Tax Guide CTGREI1 (22 October 2024). u.ae: taxation.
• Cushman & Wakefield Core, MarketBeat Residential Q2 2026 Dubai, reported by Khaleej Times (9 August 2026). AirDNA data reported by Emirates 24|7 (4 September 2026).

Prepared by the East Property editorial team. Data as of 25 September 2026. Fees are reviewed when DET or the Dubai Legislation Portal publishes a change.

FAQ

Do I need a licence to rent out my apartment on Airbnb in Dubai?

Yes. Regularly letting a furnished home to short-stay guests is a licensed activity under Decree No. 41 of 2013, and DET requires every unit to be registered and approved before it is listed on any platform.

How much does a holiday home licence cost in Dubai?

The unit permit costs AED 300 per bedroom, capped at AED 1,200 a year, plus AED 50 for classification and AED 20 in knowledge and innovation fees. That is AED 370 for a one-bedroom unit. Operators pay separate registration charges of AED 1,500 plus AED 20.

How long does it take to get a holiday home permit in Dubai?

DET states that applications are reviewed within one business day once the documents are uploaded on DET’s portal.

How long is a holiday home permit valid?

One year. It must be renewed before it expires to keep letting the unit.

What is the fine for running a holiday home without a permit in Dubai?

AED 5,000 for conducting the activity without a licence and AED 2,000 for leasing without DET’s prior approval. Repeat violations within a year are doubled, up to AED 100,000.

How much is the Tourism Dirham for holiday homes?

AED 15 per bedroom per night for a deluxe unit and AED 10 for a standard unit, charged for up to 30 consecutive nights of a stay.

Can a tenant operate a holiday home in Dubai?

Only with the landlord’s written consent, which Article 24 of Law No. 26 of 2007 requires for any sublease, and with a DET permit in the tenant’s name.

Do I need a NOC from the building?

DET asks for a developer NOC where applicable. Developers and owners associations must enable licensed hosts under the bylaw, but a clause in your SPA that forbids short-term letting will block the permit.

Is holiday home income taxed in the UAE?

There is no personal income tax. VAT registration is mandatory above AED 375,000 of taxable supplies, and the FTA treats a DET permit as a licence, so an individual host with business turnover above AED 1 million falls into corporate tax.

Is short-term rental more profitable than a long lease in Dubai?

Only above a break-even occupancy. On our illustrative one-bedroom unit, short-term letting pays more than a lease from about 65% occupancy. AirDNA data put Dubai’s average at 69% for the year to August 2026.