- Anyone renting a Dubai home for stays under six months needs a permit from the Department of Economy and Tourism.
- The fee is AED 100 plus AED 300 per bedroom, capped at AED 1,200, giving a practical ceiling of about AED 1,300 a year.
- The Tourism Dirham is AED 10 per occupied room per night for Standard and AED 15 for Luxury, remitted before the 16th of the next month.
- Operating without a permit is fined AED 5,000, doubling on repeat within 12 months, capped at AED 100,000.
- The 21 May 2026 AED 1.5 billion relief package exempts permit fees and the Tourism Dirham, with no end date published.
Anyone renting out a Dubai home for stays under six months needs a holiday home permit from the Department of Economy and Tourism, and the published fee is AED 100 plus AED 300 per bedroom, capped at AED 1,200, giving a practical ceiling of about AED 1,300 a year.
In May 2026 Dubai’s AED 1.5 billion relief package exempted holiday home permit and licence fees and the Tourism Dirham, but no end date was published, so check the current status with DET before you budget.
Short-term rental looks simple from the guest side and is regulated from the owner’s side. The permit, the unit standards, the Tourism Dirham, the records and the fines all come from a small set of Dubai laws, and much of what circulates online is rounded, outdated or wrong. This guide sets out what is traceable to the rules, what is disputed, how the 2026 relief changes the picture, and how to decide between managing the unit yourself and hiring a licensed operator.
| Detail | What applies |
|---|---|
| Who must hold a permit | Any person offering a residential unit for stays under six months in Dubai |
| Regulator | Department of Economy and Tourism (DET), formerly DTCM |
| Permit fee | AED 100 initial approval or renewal plus AED 300 per bedroom, capped at AED 1,200 a year |
| Practical ceiling | About AED 1,300 a year for four or more bedrooms |
| Tourism Dirham | AED 10 per occupied room per night for Standard, AED 15 for Luxury |
| Fine for operating without a permit | AED 5,000, doubling on repeat within 12 months, capped at AED 100,000 |
| 2026 relief | Permit and licence fees and Tourism Dirham exempted under the 21 May 2026 package, with no end date published |
“The permit costs very little. The expensive mistakes are renting without one, collecting the Tourism Dirham wrongly, or buying a unit that cannot legally be let.”
Where the rules come from
Dubai’s holiday home framework rests on a small group of instruments. Decree No. 41 of 2013 regulates holiday home leasing, and Executive Council Resolution No. 49 of 2014 sets the fee and fine schedules. Executive Council Resolution No. 2 of 2014 covers the Tourism Dirham, and Administrative Resolution No. 1 of 2020 sets the application requirements.
The decree says that no person, natural or legal, may carry on the activity unless licensed by DET. There are two practical routes. You can hold a permit for your own unit, or a company can hold an operator licence to manage units for others.
An operator is a business, so the company side matters. Our guide to Dubai real estate brokerage rules in 2026 shows how closely related property activities are regulated, which helps when you decide what licence a holiday home business needs.
What the permit costs
The fee schedule is short. Initial approval or renewal is AED 100, the permit is AED 300 per bedroom up to a cap of AED 1,200 a year, an inspection request is AED 300, reopening a closed unit is AED 200, and a classification certificate is AED 50.
In practice that means about AED 400 a year for a one-bedroom unit, AED 700 for two bedrooms, AED 1,000 for three, and AED 1,300 for four or more. Some sources quote a figure of AED 1,520, but we could not trace it to the resolution, so treat it with caution.
Fees are a small share of the cost of running a holiday home. Furnishing, cleaning, platform commissions, utilities, maintenance and the Tourism Dirham matter far more, as the next sections explain.
The May 2026 relief
On 21 May 2026 Dubai approved an AED 1.5 billion relief package that, among its tourism measures, exempts holiday home permit and licence fees and the collection of the Tourism Dirham. Reports say the 33 initiatives would be rolled out over three to twelve months, without saying which measure lasts how long.
That means we cannot confirm whether the exemption is still in force on any given day. If you are budgeting, use the normal fee schedule as the base case and treat the exemption as a possible saving.
The package follows an earlier AED 1 billion plan announced in March 2026, which included three-month deferrals of certain tourism charges. Our guide to the March 2026 AED 1 billion relief plan for Dubai businesses explains the first package in detail.
The Tourism Dirham
The Tourism Dirham is a per-night charge on guests. It is AED 10 per occupied room per night for a Standard holiday home and AED 15 for a Luxury one, with the classification set by DET at inspection.
The operator collects it and remits it to DET before the 16th day of the month following collection. Operators must keep monthly statements, five years of records and annual audited accounts, according to the resolution.
Late or non-payment attracts a fine of 10% of the unpaid amount, with a minimum of AED 1,000, and repeat breaches within 12 months double, capped at AED 50,000. If the charge is currently exempt, confirm with DET whether you still need to file the monthly statements.
Applying for a permit
Administrative Resolution No. 1 of 2020 sets out what applicants must provide. The core items are proof that the property is in an area where DET authorises holiday homes, a valid passport or Emirates ID, proof of the right to dispose of the unit such as a title deed, and confirmation that the purchase agreement does not prohibit short-term letting.
The unit also has to meet DET’s technical specifications. Most owners need a building-level no objection certificate before the application can proceed, because many communities restrict short-term letting.
- Confirm the building and community allow short-term rentals and obtain the no objection certificate.
- Submit the application and documents through the DET portal.
- DET reviews the application and may inspect the unit.
- If approved, pay the fee and receive the permit.
- Display the permit number on listings and keep the Tourism Dirham records.
Processing times are quoted widely, for example three to seven working days, but we could not verify them against a primary source, so ask DET.
Unit classification and standards
DET classifies each unit at the first inspection and again from time to time. The classification decides whether the Tourism Dirham is charged at the Standard or Luxury rate, so it directly affects your running cost per night.
Fine tables also include penalties for inadequate maintenance and for invalid insurance, at AED 2,000 each. Mandatory in-unit items such as fire safety equipment, a first-aid kit and linen sets are widely listed, but we could not check them against DET’s current technical guide, so use that guide as the authority.
Insurance deserves attention even where the amount is not fixed. A guest incident in an uninsured unit can cost far more than the premium, and a permit renewal can be refused if the cover has lapsed.
Records and the compliance calendar
A holiday home generates a steady stream of obligations: permit renewal, insurance renewal, monthly Tourism Dirham statements, guest records and annual accounts for operators. Missing one can trigger a fine or block a renewal.
Put the dates in one calendar and keep a folder for each unit. Our checklist of recurring UAE company obligations is a useful template if you operate through a company, since the same habits apply.
If you let several units, consider keeping a simple monthly sheet that shows nights sold, Tourism Dirham collected, platform fees and cleaning costs. It makes the monthly filing quick and shows which units actually earn their keep.
Fines you should know about
- Operating without a licence or permit: AED 5,000.
- Operating during a suspension: AED 20,000.
- Obstructing an inspector: AED 10,000.
- Giving false information: AED 5,000.
- Record-keeping failures: AED 1,000 each.
- Repeat breach within 12 months: doubles, capped at AED 100,000.
Several figures that circulate online are not traceable to the resolutions, including some repeat-offence brackets and a so-called eight-unit limit for self-managed owners. Rely on the schedules above and DET’s own notices.
Consider an owner of a two-bedroom apartment who lists it on a booking platform without a permit, thinking the building approval is enough. After a complaint, DET fines the owner AED 5,000 and requires the listing to stop. Applying properly would have cost about AED 700 a year under the standard schedule, or nothing while an exemption applies. The fine was seven times the annual fee.
Self-managing or using an operator
Self-managing keeps more income but puts guest communication, cleaning, Tourism Dirham remittance and DET records on you. It suits an owner who lives nearby and has the time.
A licensed operator takes over the operations and compliance, and typically charges a share of revenue, often in the mid-to-high teens as a percentage. That cost can be worth paying when you own several units, live abroad or want predictable compliance.
For investors who buy specifically to let, the property visa rules also matter. Our guides to the UAE property investor visa and to the 2026 overhaul of the Dubai property investor Golden Visa explain how a purchase can support residency.
Market risk and tax
Demand matters as much as compliance. One property adviser reports that holiday home occupancy in Dubai fell sharply in spring 2026 after regional events, while listings kept growing. Check current occupancy and rate data before you underwrite a purchase on the basis of last year’s returns.
Rental income can also have tax consequences. If you operate through a company, VAT and Corporate Tax may apply once thresholds are met, and our guide to the VAT registration trigger for small businesses explains the thresholds and deadlines.
Before you buy, ask the developer or the owners’ association in writing whether short-term letting is allowed and whether any fees or restrictions apply. A permit does not override a building rule, and a unit that cannot be let legally is a much weaker investment.
Common mistakes with Dubai holiday homes
- Listing a unit before the permit and the building approval are in place.
- Buying in a community or building that restricts short-term letting.
- Assuming a fee exemption means no records or no remittance.
- Trusting rounded online figures instead of the resolutions.
- Underwriting a purchase on peak-season income only.
When professional help is worth it
A licensed adviser is worth hiring when you want to operate as a company, manage several units or structure the business for tax. They can set up the right licence, check the permit route and keep the Tourism Dirham records in order.
E.zone, which sets up commercial licences for property and hospitality businesses, can advise on the company side of a holiday home operation. Its guide to the Dubai commercial licence explains the licence category most operators use.
This is general information and not legal or financial advice. Permit rules, fees and relief measures change, so confirm the current position with DET before you list a property.
Frequently asked questions
Do I need a permit to rent out my Dubai apartment short term?
Yes. Any stay under six months in a residential unit needs a holiday home permit from DET, and the building must allow short-term letting.
How much is a Dubai holiday home permit?
The fee schedule is AED 100 for approval or renewal plus AED 300 per bedroom up to AED 1,200, so about AED 400 for a one-bedroom and up to AED 1,300 for four or more.
What is the Tourism Dirham?
A per-night charge on guests, AED 10 per occupied room for a Standard holiday home and AED 15 for Luxury, collected by the operator and remitted to DET.
Are holiday home fees waived in 2026?
The May 2026 relief package exempts permit and licence fees and the Tourism Dirham, but no end date was published, so confirm the current status with DET.
What is the fine for renting without a permit?
AED 5,000, doubling on repeat within 12 months, capped at AED 100,000.
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