Investor guide

Short-term rentals in Dubai: the Holiday Home permit

Updated: October 2026 · Insight City · Dubai

An apartment or villa in Dubai may be let short-term only with a Holiday Home permit from Dubai's Department of Economy and Tourism (DET, formerly DTCM). An owner registers in the Holiday Homes system directly (up to 8 units) or hands the unit to a licensed operator. Per DET as of October 2026, registration costs AED 1,520 and a unit permit AED 300 per bedroom plus fees, capped at AED 1,200 a year. Guests pay the Tourism Dirham: AED 10–15 per room per night.

Who can let short-term

Documents

Before buying a unit for short-term letting, check the building and contract rules: some buildings restrict this use.

What the permit costs

Tourism Dirham and operating rules

Costs, and comparison with long-term letting

Short-term letting is more work: cleaning, linen, guest communication, booking-platform commissions, and utilities stay with the owner. Many owners hand this to an operator for a share of the income. Long-term letting with an Ejari contract is simpler, and the tenant usually pays utilities. Owner costs are in the yearly cost of owning; ready vs off-plan in off-plan or ready.

The UAE has no personal income tax, but short-term letting can be subject to 5% VAT once turnover over 12 months exceeds the mandatory registration threshold (AED 375,000). The income may also be taxed in your country of tax residence. Check with a tax adviser; see also Dubai property taxes. This is general information, not an income forecast.

Frequently asked questions

Do I need a permit to let my Dubai apartment short-term?

Yes. The unit is registered and approved by DET in the Holiday Homes system before it is listed on booking platforms.

How much is a Holiday Home permit?

Per DET as of October 2026: registration AED 1,520; a unit permit AED 300 per bedroom plus AED 70 in fees, capped at AED 1,200 a year.

What is the Tourism Dirham?

A guest charge per room per night: AED 15 for Deluxe and AED 10 for Standard holiday homes.

Can an owner let without an operator?

Yes, an owner can register up to 8 units in their own name. More units need an operator company licensed for Vacation Homes Rental.

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