Holiday Home License in Dubai: Complete Guide

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October 12, 2023

Holiday home

This comprehensive guide provides detailed instructions for obtaining a Holiday Home License in Dubai. For property owners looking to tap into this flourishing market by renting out their homes as vacation getaways, obtaining a Holiday Home License is a prerequisite.

With the advent of platforms like Airbnb and similar services, the vacation rental market in Dubai has experienced substantial growth. Property owners stand to gain significant opportunities in the short-term rental sector.

The Dubai Department of Tourism and Commerce Marketing (DTCM) and Dubai Economy and Tourism Department now permit homeowners to list their properties as short-term vacation rentals. However, it’s crucial to note that listing properties on platforms like Airbnb without the appropriate license is illegal. The good news is that acquiring this license, along with any other necessary approvals and visas, can be a straightforward process with the right guidance. Read on to learn how to secure a Holiday Home License in Dubai for your vacation home rental business.

Understanding a Dubai Holiday Home Rental Business

According to the Dubai Department of Economic Development (DED), the vacation home rental industry encompasses well-furnished accommodations available for short-term rentals to tourists and travelers, whether on a daily, weekly, or monthly basis. To conduct such operations, property managers must hold a valid license for short-term rentals.

Dubai attracts visitors from all corners of the world, resulting in a thriving holiday home rental industry, with many seizing this lucrative business opportunity.

Advantages of Acquiring a Short-Term Rental License in Dubai

Dubai hosts approximately 20 million tourists annually, and recent regulations have simplified licensing for property owners. This translates to an average premium of 25-30% in comparison to long-term rentals, promising a higher return on investment. With a 0% tax rate on business and personal income in the United Arab Emirates, entrepreneurs can profit from setting up businesses in Dubai, especially in a free zone, which also allows currency use without restrictions. Given Dubai’s status as a favored tourist and business destination, the tourism industry is poised for continued growth, making it an opportune time to acquire a Holiday Home License.

Steps to Acquire a Holiday Home License in Dubai
  1. Apply for Your Trade LicenseThe initial step is to apply for a trade license to establish your vacation home rental business. While you may already own the property, you must provide the following information to register your business with the DED:
    • Completed application form
    • Passport copy of the property owner
    • Property details
    • Two colored passport-sized photographs
  2. Approval from DTCM
    You must also obtain approval from the Department of Tourism and Commerce Marketing (DTCM), which oversees Dubai’s tourism industry’s development and marketing.
  3. Property Compliance
    After registration, your property will undergo periodic inspections to ensure it adheres to the necessary standards. It’s mandatory to display your DTCM certificate in your rental home.

Documents Required to Start a Vacation Home Rental Business in Dubai

Before embarking on your vacation rental business in Dubai, ensure you have the following essential documents:

  • Owner’s passport
  • Completed license application form
  • Property details
  • Trade license from DED
  • DTCM certification

Starting a Holiday Home Business in Dubai

When launching your vacation home rental business in Dubai, adhere to these procedures:

  1. Select Your Commercial Activity
    In DED Activity list Holiday home License is listed as “Vacation Home Rental “business activity.
  2. Choose a Business Name
    Select a name for your organization that adheres to specific guidelines. Avoid offensive or scandalous names and steer clear of names already in use by well-known corporations. If using your name, refrain from abbreviations and opt for your full name.
  3. Obtain a Holiday Home License
    Secure a business license through the Department of Economic Development. Additionally, you must have a certificate from the Department of Tourism and Commerce Marketing (DTCM) in your rentals for potential inspections.
  4. Complete Visa Application
    To operate a vacation home rental agency in Dubai, a UAE visa is necessary. A residential permit is vital for business operation in the UAE.

Holiday Home License Costs in Dubai

Starting a vacation home rental business in Dubai can involve several expenses, including licensing fees and DTCM approval charges. You’ll need to allocate around AED 300 annually for separate allowance fees, calculated based on the number of rooms you intend to rent. There’s also a tourism fee of AED 10-15 per bedroom. For a comprehensive understanding of the cost structure, consider consulting with business consulting firms where professionals can guide you through each step.

Dubai Holiday Home Rental Regulations

Before offering your apartment as a vacation rental, ensure you comply with Dubai’s laws and regulations, which include:

  • Supplying water and electricity free of charge to guests
  • Providing proper care and maintenance at all times
  • Adhering to DTCM guidelines
  • Levying a 10% municipality tax on visitors
  • Charging an additional AED 10 to AED 15 in tourism fees for standard and deluxe accommodations

Finally, if you’re contemplating the launch of your vacation home rental agency in Dubai, then there’s no better moment than the present to embark on this fantastic endeavor! Our team of experts can assist you in Holiday Home Business Setup, from securing your licenses and certificates to managing your visa and immigration procedures. Reach out to us for more details.

Also read: How to start a Digital Marketing Agency in Dubai (2023)

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