What is Holiday Home License Dubai Cost?

Tourism is a highly profitable sector for Dubai, making it a prime destination for East-meets-West adventures, desert explorations, and luxurious shopping experiences at places like the Dubai Mall and traditional souks.

The Dubai holiday homes market has seen significant growth with the rise of platforms like Airbnb. Short-term rental properties offer excellent business opportunities for property owners.

Dubai has updated its regulations for holiday home operations. Homeowners can now list their properties with the Dubai Department of Tourism and Commerce Marketing (DTCM) and the Dubai Economy and Tourism Department (DETD) for short-term holiday rentals.

Getting a Holiday Home License Dubai Cost

If you plan to rent out your property, obtaining a holiday home license is essential. Dubai Business Service provides expert guidance throughout the process.

In this article, we will cover:

  • Benefits of a Holiday Home License in Dubai
  • Dubai holiday home rental regulations
  • The cost of a holiday home license in Dubai
  • DTCM holiday home fees
  • Steps to obtain a holiday home license
  • Working with Dubai Business Service

Benefits of a Holiday Home License Dubai Cost

Dubai’s hospitality sector is booming, attracting 20 million visitors annually, with numbers increasing due to events like the Dubai Expo 2020. The streamlined licensing and permit regulations make it more profitable and straightforward for property owners to enter the holiday homes market, offering a 25-30% premium return on investment compared to long-term rentals. This growth trend boosts the popularity of bookings for holiday homes in Dubai.

Dubai Holiday Home Rental Regulations

To rent your property as a holiday home in Dubai, you must apply for a holiday home license from the DTCM and DETD. These licenses are renewable annually. Regulations require homeowners to obtain insurance for their holiday homes, and many use holiday home operators to handle maintenance, marketing, and bookings. These operators must establish contracts with guests and include a security deposit to protect the homeowner’s investment. Additionally, each holiday home must meet specific safety and furnishing standards before approval.

Holiday Home License Dubai Cost

The cost of a holiday home license in Dubai ranges from AED 10,000 to AED 12,000, including the Knowledge and Innovation fees. Additional costs include the DTCM approval fee and permit cost, calculated per room at AED 300 annually, DETD fees, and annual Dubai Municipality fees. For an accurate quote, contact Trade License Zone’s specialist team.

DTCM Holiday Home Fees

Registered holiday homes incur a 10% Municipality fee on all bookings. Homeowners must also pay AED 10 per night for standard holiday homes and AED 15 for deluxe holiday homes per booked room. DETD imposes annual fees of AED 300 per room and AED 70 per home. The DTCM annual permit fees are as follows:

  • 1-bedroom homes: AED 370
  • 2-bedroom homes: AED 670
  • 3-bedroom homes: AED 970
  • 4-bedroom homes and larger: AED 1,270

Steps to Obtain a Holiday Home License in Dubai

To secure a holiday home license in Dubai, follow these steps:

  1. Partner with Dubai Business Service: Our experts will manage your application and guide you through the regulations.
  2. List Your Business Activities: Ensure all activities are listed on the license application forms to avoid penalties.
  3. Choose a Company Name: We help you select and register a compliant business name.
  4. Complete the Application Process: Submit application forms, passport copies, photos, property details, approvals, and a No Objection Certificate if required.
  5. Apply for a New Visa: Once licensed, apply for your visa and open a corporate bank account. Our team assists you with these steps as well.

Tips to Grow Your Airbnb Business in Dubai

  • Optimize Your Listing: Use high-quality photos and detailed descriptions to attract guests.
  • Enhance Guest Experience: Maintain a clean, well-stocked property and respond promptly to guest inquiries.
  • Price Competitively: Research local listings and adjust pricing based on demand.
  • Utilize Promotional Tools: Leverage Airbnb’s promotional tools for increased visibility.
  • Leverage Social Media: Promote your listing through social media and online advertising.

Working with Dubai Business Service

Partnering with Dubai Business Service simplifies the business setup in Dubai. We handle the entire process, ensuring a smooth application for your holiday home license. Provide us with basic documentation, and our team will manage the rest, including communication with local authorities and final approval of your license. It’s that simple.