Tax & Legal

How does the Dubai Tourism Dirham tax affect my short-term rental income?

The Dubai Tourism Dirham Tax directly impacts your short-term rental income by adding a mandatory fee that you must collect from guests and remit to the government. This fee is applied per room, per night and varies depending on the type and classification of your rental property.

  1. Tourism Dirham Tax Rates

    • Standard properties (basic apartments or homes): AED 10 to AED 15 per night.

    • Deluxe properties (premium locations and amenities): AED 15 to AED 20 per night.

    • Luxury properties (high-end apartments or villas with top-tier services): AED 20 to AED 25 per night.


  2. The fee is capped at 30 consecutive nights per booking, meaning if guests stay beyond 30 days, they won’t be charged the fee for the remainder of their stay​.


  3. Impact on Your Rental Income

    While the Tourism Dirham is paid by the guest, it can affect your pricing strategy and the overall appeal of your property. Here’s how:

    • Pricing Considerations: To remain competitive, many landlords include the Tourism Dirham in their overall rental rate. This ensures there are no surprises for guests at checkout, making your listing more appealing.

    • Profit Margins: Although this tax doesn’t directly cut into your rental income, it adds a layer of complexity in terms of administration. You are responsible for collecting and remitting the fee to the Dubai Department of Economy and Tourism (DET), which requires time and attention​.


  4. Administrative Responsibility

    As the property owner or manager, you must:

    • Collect the Fee: Ensure you collect the Tourism Dirham either as part of the total booking cost or as a separate charge at check-in.

    • Submit Monthly Payments: You need to remit the collected fees to the DET every month. Failure to comply with these regulations could result in penalties or fines​.


  5. Guest Perception

    The Tourism Dirham, while common in Dubai’s hospitality industry, can influence guest perception if not communicated clearly. Transparent listings that outline all fees upfront tend to perform better, as guests appreciate knowing the full cost of their stay in advance.

Related Questions