Holiday Home License in Dubai
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Dubai’s tourism industry is booming, offering a mix of East-meets-West experiences, desert adventures, and luxurious shopping at places like the Dubai Mall. For property owners looking to rent out their homes as vacation rentals, a Holiday Home License in Dubai is required.
With platforms like Airbnb gaining popularity, the market for vacation rentals in Dubai has grown significantly. Property owners have great opportunities to earn from short-term rentals.
The Dubai Department of Tourism and Commerce Marketing (DTCM) and Dubai Economy and Tourism Department now allow homeowners to list their properties as short-term vacation rentals.
However, listing properties on sites like Airbnb without a license is illegal. The good news is that obtaining this license, along with any other necessary approvals and visas, is straightforward with the right help. Keep reading to find out how to get a Holiday Home License in Dubai for your vacation rental.
What does a Dubai holiday home rental business involve?
In Dubai, the holiday home rental business involves offering well-furnished accommodations to tourists and travelers. These properties can be rented out on a daily, weekly, or monthly basis. To manage and rent these properties short-term, the property manager must have a specific license.
Dubai attracts visitors from around the world, leading to a booming holiday home rental market. This growing demand presents a valuable business opportunity for those looking to get involved in the vacation rental industry.
Benefits of obtaining a short-term rental license in Dubai
Dubai’s tourism industry is thriving, with around 20 million tourists visiting each year. Property owners can now easily enter the vacation rental market thanks to simplified licensing laws. Compared to long-term rentals, short-term rentals can offer an average 25–30% higher return on investment. This means more demand and bookings for vacation rentals in Dubai.
Starting a vacation rental business in Dubai offers several advantages. The UAE has a 0% tax on both business and personal income, which is highly beneficial. Additionally, setting up your business in a free zone allows you to use any currency without restrictions.
Given Dubai’s status as a top tourist and business destination, its tourism industry is expected to keep growing. This makes now the perfect time to get your Holiday Home License and start your vacation rental business.
How to get a holiday home license in Dubai
To start your vacation home rental business in Dubai, the first step is to apply for a trade license. Since you already own the property, you need to provide the following documents to register your business with the Department of Economic Development (DED):
- Completed application form
- Copy of your passport
- Details of the property
- Two recent passport-size photographs (colored)
You also need approval from the Department of Tourism and Commerce Marketing (DTCM), which oversees Dubai’s tourism industry.
After your property is registered, it will be inspected periodically to ensure it meets the required standards. Make sure to display your DTCM certificate in your rental home.
Documents needed to start a vacation home rental business in Dubai
Before you can start your vacation rental business in Dubai, you need to gather the following documents:
- Owner’s passport
- Completed license application form
- Details of the property
- Trade license from the Department of Economic Development (DED)
- Certification from the Department of Tourism and Commerce Marketing (DTCM)
How to start a holiday home business in Dubai
To start your vacation home rental business in Dubai, follow these steps:
- Choose your Commercial activity
The Department of Economic Development (DED) classifies a vacation home rental business under the “Vacation Homes Rental” activity. - Pick a business name.
Decide on a name for your business. Make sure the name is appropriate and not offensive or scandalous. Avoid using names already taken by well-known companies. If you use your name, use the full name and avoid abbreviations or acronyms. - Obtain a Holiday Home License
You need to get several licenses before starting your business. First, obtain a trade license from the Department of Economic Development (DED). Additionally, make sure to have a certificate from the Department of Tourism and Commerce Marketing (DTCM) for your rentals, as you may be subject to random inspections. - Complete your visa application
To operate a vacation home rental business in Dubai, you need a UAE visa. Without a residential permit, you cannot run your business. Having a visa will allow you to operate your business smoothly in the UAE.
Holiday home license cost in Dubai
Starting a home rental business in Dubai involves several costs. You’ll need to budget for both the licensing fee and the approval fee from the Department of Tourism and Commerce Marketing (DTCM).
Here’s a breakdown of the costs:
- Allowance Fees: Around AED 300 per year for each room you rent out.
- Tourism Fee: AED 10–15 per bedroom.
It’s a good idea to consult with a business advisor for a clearer understanding of all the expenses involved. They can guide you through the entire process and help you understand the cost structure for starting your vacation home rental business.
Dubai holiday home rental regulations
Before renting out your apartment in Dubai, be aware of these important regulations:
- Utilities: You must provide essential services like water and electricity at no extra cost to guests.
- Maintenance: Ensure that proper care and maintenance of the property are provided at all times.
- DTCM Guidelines: Your vacation home must comply with the Department of Tourism and Commerce Marketing (DTCM) standards.
- Municipality Tax: Visitors must pay a 10% municipality tax.
- Tourism Fees: Standard and deluxe accommodations are subject to an additional tourism fee of AED 10 to AED 15 per night.
Contact Khidmath Corporate Services to get your holiday home license in Dubai. As a leading organization we help foreigners set up fully-owned businesses in Dubai.
