Meta Description: Want to rent out your property as a holiday home in Dubai? Learn the legal steps, DTCM license rules, and pro tips to manage rentals successfully in 2025.
Introduction: Why Holiday Home Rentals Are Booming in Dubai
Dubai has become a magnet for tourists, digital nomads, and real estate investors, and with that, short-term rentals are on the rise. More property owners are discovering that listing a property as a holiday home in Dubai not only increases rental income potential but also offers flexibility in property use.
But before you welcome guests, there’s one important rule: it must be legal. Dubai has clear rules and a licensing framework through Dubai Tourism (DTCM) to regulate this booming market. Here’s a step-by-step breakdown to help you legally list and manage a holiday home in Dubai in 2025.
Overview of Short-Term Rental Laws
Dubai allows short-term property rentals, but only under strict regulations. A holiday home is defined as a furnished residential unit rented on a daily, weekly, or monthly basis without a long-term contract.
Role of Dubai Tourism (DTCM)
The Department of Economy and Tourism (DET), also known as DTCM, oversees and licenses all short-term rental activity. They ensure quality, safety, and compliance through a holiday home permit system.
Individual Owners vs Corporate Operators
Residency and Property Ownership Requirements
You don’t have to be a UAE resident to list a holiday home, but ownership is mandatory. If you’re renting the unit long-term, subleasing as a holiday home is not allowed without special permissions.
Registering with DTCM
Required Documents & Fees
Duration and Renewal of the License
Licenses are typically valid for one year and must be renewed annually. You must also submit regular guest data and maintain safety compliance.
DTCM Interior Standards
Your unit must be fully furnished and ready for guests. This includes:
Safety Equipment and Guest Essentials
Airbnb, Booking.com, and DTCM Portals
Once licensed, you can list on platforms like:
Legal Advertising Guidelines
All listings must clearly display:
Guest Registration Rules
All guests must be registered through the DTCM portal. You’ll need to collect:
Tourism Dirham Fee Collection
Hosts are required to collect a nightly Tourism Dirham Fee (typically AED 10–15 per bedroom) and remit it to DTCM.
When to Consider Outsourcing
Managing a holiday home takes time. If you’re based abroad or lack time, hiring a licensed management company can make life easier.
What a Professional Operator Offers
VAT and Corporate Tax Considerations
If your rental income exceeds AED 375,000 annually, you may need to register for UAE VAT. With the introduction of corporate tax, larger portfolios may also need to file annually.
Always consult a tax advisor familiar with UAE laws.
Common Mistakes to Avoid
Regular Inspections and Compliance Updates
DTCM performs spot checks, so always keep your unit in top shape and documents up to date.
Reviews, Repeat Guests, and ROI Optimization
Want more bookings? Focus on:
Q1: Can I list multiple units under one license?
A: No. Each property needs a separate DTCM permit, even if owned by the same person.
Q2: Is Airbnb legal in Dubai?
A: Yes, as long as the property is DTCM-licensed.
Q3: How long does it take to get the license?
A: Typically 5–7 working days if all documents are in order.
Q4: What if I don’t live in Dubai?
A: You can hire a licensed management company to handle everything on your behalf.