Holiday Home License Dubai: DET Requirements, Fees and Application

Dubai's short-term rental market gives property owners another way to earn from apartments and villas. You cannot simply furnish a property, put it on Airbnb or Booking.com and start accepting guests, though.

Holiday homes in Dubai are regulated by the Dubai Department of Economy and Tourism (DET). Apartments and villas must be registered and approved before they are advertised or rented as holiday accommodation. Professional operators also need the correct business activity on their commercial licence.

If you are planning to apply for a Holiday Home License in Dubai, the process is fairly clear once you understand the difference between operator registration and the permit issued for each property.

This guide covers the current DET requirements, fees, documents, classifications and application process.

What Is a Holiday Home License in Dubai?

Dubai law defines a holiday home as a furnished property used for paid overnight accommodation on a regular basis.

The legal framework comes mainly from Dubai Decree No. 41 of 2013, which regulates holiday home letting throughout Dubai, including special development zones and free zones. 

There are two parts you need to understand.

First, there is your authority to conduct the activity. A professional company must have the appropriate commercial licence. DET currently requires the Vacation Homes Rental activity for professional operators.

Second, every apartment or villa needs its own Holiday Home permit.

This distinction matters if you plan to build a larger short-term rental operation. If you are creating a company rather than letting your own property, Nexture's guide to setting up a business in Dubai explains the wider company formation process.

Who Can Apply for a Holiday Home Permit?

DET accepts applications from individual property owners and licensed professional operators.

Individual property owners

An owner can register in the Holiday Homes system if the account name matches the name shown on the title deed.

DET currently limits individual homeowners to eight Holiday Home units. If you want to manage more units, DET's current guidance says you need a company licence or must hand the additional properties to a licensed Holiday Home operator.

Professional Holiday Home operators

According to the DET Holiday Homes operator registration requirements, a company managing properties for other owners needs a valid commercial licence showing Vacation Homes Rental as the licensed activity. 

DET Holiday Home Requirements

Getting the permit involves more than uploading ownership documents. The property itself must qualify.

1. The property must be eligible

   DET's latest Holiday Homes guide states that:

   • Apartments should have a residential title deed.

   • Villas or houses inside residential compounds may have residential or commercial classifications.

   • Independent villas may qualify under specific classifications.

   • Hotel rooms and hotel apartments cannot receive Holiday Home permits.

   • A property cannot qualify where its sale and purchase agreement specifically prohibits Holiday Home use.

2. Prepare the required documents

   DET currently asks for documents including:

   • Title deed or approved Dubai Land Department sale and purchase agreement

   • Developer NOC where applicable

   • Signed landlord passport or Emirates ID

   • Commercial licence if the landlord is a company

   • Passport or Emirates ID of the authorised signatory

   • DET Property Management Letter

   • Current DEWA bill

   If someone signs the Property Management Letter on behalf of the owner, DET can also require a Power of Attorney and the representative's passport copy. 

   For professional operators, the dates on the Property Management Letter should correspond with the requested permit period.

3. Meet property and safety standards

   Holiday homes must meet DET's technical and classification standards.

   Current DET guidance also requires compliance with SIRA rules for approved smart locks connected to the Keyless system. A suitable insurance policy must remain valid during the licence period and provide coverage for guest-related damage. DET can inspect Holiday Homes and conduct later unannounced inspections.

   Once registered, the unit's QR code should also be displayed outside the property beneath the DEWA premise plaque. DET's current guide specifies a 5 cm x 5 cm laminated QR sticker.

Holiday Home License Dubai Cost

One of the easiest mistakes is treating the permit fee as the entire cost. There are separate registration and property permit charges.

DET states that the annual permit component is capped according to its published Holiday Home fee structure.

So, for a single one-bedroom property, the currently published Holiday Homes registration and first permit charges would start at around AED 1,890.

That figure does not include costs such as forming a professional operator company, its commercial licence, furnishing, insurance, smart-lock installation, property management or other operational expenses.

How to Apply for a Holiday Home License in Dubai

DET handles applications electronically through its Holiday Homes system.

1. Register your Holiday Homes account

   Create an account as either an individual owner or professional operator. Owners provide their Emirates ID. Professional operators upload their commercial licence.

   DET lists the service time as approximately one business day for a complete registration application.

2. Add the property

   Enter the unit information in the system.

   Check the DEWA information carefully. DET's current new-permit service specifically instructs applicants to enter the DEWA premise number rather than the account number when completing that application.

3. Upload the documents

   Upload the title deed or approved SPA, identification documents, DEWA bill, Property Management Letter and any NOC or supporting authority documents that apply.

4. Submit the application

   Review the details before submitting.

   A mismatch between the owner's name, unit documents, DEWA information or management letter can delay the application.

5. Self-classify the property

   You will need to classify the Holiday Home according to DET standards.

   Dubai Holiday Homes generally fall into:

   • Standard

   • Deluxe

   DET may inspect the property to confirm compliance with the classification standards.

6. Pay the permit fee

   Once the application reaches the payment stage, pay the applicable permit and classification charges online.

   DET currently states a service delivery time of around one business day, subject to the application and documents being complete.

7. Display the permit and QR code

   Do not treat approval as paperwork you can leave in an email folder. DET requires the Holiday Home permit to be displayed at the property. The unit should only be advertised and operated after the required approval has been obtained.

   Dubai's official fee legislation lists an AED 2,000 fine for leasing a Holiday Home without prior approval and AED 5,000 for conducting the activity without a licence. 

   Tourism Dirham for Dubai Holiday Homes

   Holiday Home operators must also collect Tourism Dirham from guests.

   Current charges are:

   • Standard Holiday Home: AED 10 per room per night

   • Deluxe Holiday Home: AED 15 per room per night

   For stays longer than 30 consecutive nights, the charge applies to a maximum of the first 30 nights of that continuous stay.

   DET requires operators to maintain the relevant guest and Tourism Dirham records and submit the payment within the required monthly timeframe.

   You can review the official Dubai Tourism Dirham rules for the underlying requirements.

Renewing Your Holiday Home Permit

Holiday Home permits must be renewed before expiry. They are not automatically renewed. DET currently charges AED 300 per bedroom for renewal, plus the applicable Knowledge and Innovation fees. A one-bedroom renewal is currently shown as AED 320.

If the owner or DEWA account has changed, DET may require a new registration instead of a normal renewal.

Common Mistakes to Avoid

Most Holiday Home applications become harder when the basic paperwork does not match.

Check these points before submitting:

• Make sure the owner name matches the property records.

• Check whether the SPA restricts short-term Holiday Home use.

• Do not list the property before DET approval.

• Use DET's approved Property Management Letter format.

• Make sure permit dates and management-authorisation dates match.

• Check your classification standards before declaring the category.

• Keep Tourism Dirham records up to date.

• Renew the permit before it expires.

• Do not rent individual rooms or bed spaces under a Holiday Home permit.

A little document checking at the beginning can save several rounds of corrections later.

Conclusion

Getting a Holiday Home License in Dubai is manageable, but you need to follow the DET process before accepting short-term guests.

An individual owner can manage up to eight qualifying properties, while larger operations normally require a professional Holiday Home company with the Vacation Homes Rental activity. Each unit then needs its own permit, supporting property documents and the required classification.

For a one-bedroom unit, the current published DET figures include AED 1,520 for Holiday Homes system registration and AED 370 for a new unit permit. Your real setup budget may be higher once insurance, property preparation and commercial licensing are included.

Frequently Asked Questions