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:
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.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(
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
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