What licenses are required to run a short-term rental business in Dubai?

To legally operate a short-term rental business in Dubai, you need to follow several key steps to ensure you comply with the city's regulations. Here's a detailed breakdown of the licenses and permits required:

1. Holiday Home Permit

   The most important license for short-term rentals is the Holiday Home Permit, issued by the Department of Tourism and Commerce Marketing (DTCM). This permit allows you to rent out apartments or villas on a short-term basis legally. The application process is straightforward and can be completed online through the DTCM portal.

   
   Documents required:
   

   • Title deed or proof of ownership.

   • Emirates ID or passport of the owner.

   • DEWA (Dubai Electricity and Water Authority) bill.

   • No Objection Certificate (NOC) from the property developer, if required​

   
   Cost: The fees for the permit start at AED 370 for a one-bedroom property and can go up to AED 1,200 per year, depending on the size of the property​.

   
   

2. Trade License

   If you're managing more than one property or running your short-term rental as a full-scale business, you’ll also need to obtain a trade license from the Department of Economic Development (DED). This is particularly important if you are operating under a business name or managing multiple properties for short-term rentals. The trade license falls under the business activity "Vacation Homes Rental."

   
   Documents required:
   

   • Completed application form.

   • Passport copies of the owners.

   • Property details.

   • Two passport-sized photos​(

   
   

3. Tourism Dirham Fee

   In addition to the permits, you must also comply with the requirement to collect the Tourism Dirham Fee from your guests. This fee ranges from AED 10-15 per night per bedroom, depending on the classification of the property. The fees collected must be submitted monthly to the DTCM​

   
   

4. Ongoing Compliance

   Once your property is licensed, you must adhere to DTCM regulations such as:
   
   

   • Checking in guests via DTCM’s system.

   • Maintaining safety, cleanliness, and quality standards.

   • Regular inspections by DTCM to ensure compliance​