How To Get A Holiday Home License In Dubai, UAE: A Step by Step Guide
Given Dubai's status as a highly favored destination for both tourism and business, the trajectory of its tourism industry is expected to experience sustained growth. Consequently, seizing the opportunity to secure your Holiday Home License is highly recommended at this point.
- 100% Foreign Ownership
- Easy Business Setup
- High Rental Potential
- Potential for Property Appreciation
The Tourism Sector In Dubai Is Notably Lucrative. Positioned as an ideal destination for East-meets-West experiences, exploration of desert splendor, and visits to historic souks, markets, and the opulent Dubai Mall in the downtown area for a deluxe shopping vacation, Dubai offers a diverse range of attractions. Property owners seeking to lease their residences as vacation rentals in Dubai are required to submit an application for a Holiday Home License.
Why Setup Holiday Home Rental Business in Dubai, UAE ?
With the emergence of platforms such as Airbnb and other similar holiday home operator services, the market for vacation rentals in Dubai has experienced significant growth.Property owners can capitalize on excellent business prospects related to vacation homes and short-term rental properties.
The Dubai Department of Tourism and Commerce Marketing (DTCM) and Dubai Economy and Tourism Department have implemented regulations allowing homeowners to showcase their properties as short-term vacation rentals.
However, listing properties on platforms like Airbnb without the required license is prohibited. The positive development is that obtaining this license, along with any other necessary approvals and visas, can be easily facilitated with the appropriate assistance.
Benefits of Establishing a Holiday Home Rental Business in Dubai, UAE
The thriving hospitality industry in Dubai attracts approximately 20 million tourists annually.Property owners can now seamlessly enter the vacation rental market, thanks to simplified regulations governing licenses. In contrast to long-term rentals in Dubai, this translates to an average premium of 25–30% for return on investment. This indicates a foreseeable increase in demand and bookings for vacation rentals in Dubai.
Embarking on a business venture in Dubai presents an opportunity for profitability. In the United Arab Emirates, you can benefit from a 0% tax rate on personal income within the emirates. Additionally, establishing your company in a free zone offers the added advantage of utilizing any currency without restrictions.
Given that Dubai is a highly favored tourist and business destination, its tourism industry is poised for continual growth. Consequently, the present moment presents an opportune time to register and obtain your Holiday Home License.
Dubai Holiday Home Rental Regulations
Prior to leasing your apartment, it is essential to be aware of the following laws and regulations in Dubai:
- Owners are required to provide essential amenities such as water and electricity at no cost.
- Ongoing proper care and maintenance must be ensured.
- Every vacation home must strictly adhere to the guidelines set by the Dubai Department of Tourism and Commerce Marketing (DTCM).
- Visitors are obligated to contribute 10% towards municipality tax.
- For standard and deluxe accommodations, there is an additional charge of AED 10 to AED 15 in tourism fees.
Types of Properties Eligible for Holiday Homes Business in Dubai
Not all residences are eligible for conversion into holiday homes. The Dubai Economy and Tourism (DET) regulations specify that only registered and approved apartments and villas meet the criteria. Residential villas located within gated communities, comprising a minimum of hotel apartments or four villas, are considered eligible.
Commercial villas positioned along main roads also qualify as potential candidates for holiday homes. This criterion is designed to guarantee a level of exclusivity and standardization, meeting the expectations of tourists seeking such accommodations in Dubai.
Requirements for Establishing a Holiday Home in Dubai, UAE
Before proceeding, it is crucial to comprehend the following key considerations:
- The Department of Economic Development (DED) and the Dubai Department of Tourism and Commerce Marketing (DTCM) serve as the primary licensing authorities.
- Throughout the license term, licensees must maintain insurance as per the DTCM specifications.
- The DTCM oversees the registration, monitoring, and inspection of hotel apartments and holiday houses to ensure compliance with regulations.
- Government regulations prohibit license holders from availing services outside their unit within the same building. The license is restricted to renting out the unit and providing a phone connection for emergency use.
- Holiday home apartments must be rented in their entirety and cannot be segmented or booked as individual bedrooms.
- Participation in the electronic guest registration program is mandatory for licensees operating tourism and hotel establishments.
- Each family must register with the DTCM as a holiday home, and license holders can rent properties in various locations across Dubai.
- An No Objection Certificate (NOC) from the unit owner, expressing consent for subleasing, is required.
- The license holder should possess knowledge about the hospitality industry.
- DTCM mandates licensed properties to prominently display an official certificate of registration.
- Guests staying in a deluxe holiday home are subject to a charge of AED 15 per night, along with AED 10 for Dubai tourism dirham fees and a 10% municipality tax for standard holiday homes.
- Continuous and effective management of licensed properties is essential.
- Additional charges for electricity and water are not permissible for customers.
- License holders are obligated to provide data and statistics about guests to the DTCM.
Steps to Obtain a Holiday Home License in Dubai, UAE
Establishing a in Dubai involves several steps:
Embark on the journey of opening a Holiday Home business in Dubai by partnering with Smart Zones® UAE. Our adept company formation specialists will guide you through the business license application and setup process, liaising with relevant government and municipal authorities on your behalf.
When submitting an application for a holiday home license in Dubai, it is imperative to detail all business activities in the license application forms. The Dubai Economy Trade Department (DETD) provides a comprehensive list of officially sanctioned business activities in Dubai. application and business activities.
While short-term rentals of holiday homes in Dubai may not necessitate an extensive list of activities akin to a business trade license, it remains essential to accurately document your business activities. Failure to include all relevant activities in your application may lead to penalties for engaging in unlisted business activities. Collaborating with a business setup specialist, such as Trade License Zone, ensures alignment between your license
Trade License Zone will assist you in choosing and registering your event management company's name with the UAE's Registry Office. While you can incorporate your name into the company's name, it is crucial to use the full name instead of just your surname or initials. The chosen business name must adhere to the UAE's naming policies, which prohibit any offensive or blasphemous language and references to Allah or Islam.
This procedure involves applying for a holiday home license:
- Complete the application forms provided by the Dubai Department of Tourism and Commerce Marketing (DTCM) and DETD.
- Submit a copy of the passport of the property owners.
- Provide two color passport-sized photos of the property owners.
- Furnish details and a floorplan of the property.
- Include a No Objection Certificate from your employer if applicable.
Following the application for your holiday home license in Dubai, proceed to apply for your visa and establish your corporate bank account. Depending on your holiday home license, your visa may allow sponsorship of family and staff visas. Seek assistance from Trade License Zone's expert team to navigate this critical step effectively.
Complete the process by opening your corporate bank account for your Dubai Business with Smart Zones® UAE. This final step paves the way for the successful opening of your Business.
Remember that the process may vary depending on your chosen jurisdiction and business activities. Consulting legal and business experts familiar with Dubai's business setup landscape is highly recommended.
Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.
Documents Required to Start a Holiday Home Business in Dubai, UAE
To facilitate the processing of your Holiday Home License application, the necessary documents include:
- Floorplan and comprehensive details of your property
- Fully completed application form
- A No Objection Certificate from your employer, if applicable
- Two color passport-size photos
- A copy of the passport of the proposed shareholders
- Approvals from the Dubai Department of Tourism and Commerce Marketing (DTCM)
Submitting incorrect documents can lead to immediate rejection. Our consultants at Smart Zones® UAE ensure you have the right documents, avoiding any complications in the process.
Cost of Establishing a Holiday Home Rental Business in Dubai
Commencing a vacation home rental business in Dubai entails considering various expenses. The initiation of a holiday home rental business in Dubai involves significant costs, encompassing the licensing fee and the fee for obtaining DTCM approval.
An annual fee of approximately AED 300 is required for the separate allowance fees, calculated per room rented. Additionally, there is a tourism fee ranging from AED 10 to AED 15 per bedroom.
For comprehensive guidance on the cost structure and every aspect of establishing your vacation home rental business, reach out to business consulting firms such as Smart Zones® UAE. Their professionals can assist you through each step, ensuring a thorough understanding of the expenses involved.
Dubai's tourism sector is highly lucrative, offering diverse attractions such as East-meets-West experiences, desert exploration, historic souks, and luxurious shopping at the Dubai Mall. The market for vacation rentals has grown significantly, and property owners can capitalize on this trend through platforms like Airbnb.
The Dubai Department of Tourism and Commerce Marketing (DTCM) and Dubai Economy and Tourism Department have implemented regulations allowing homeowners to showcase their properties as short-term vacation rentals. It's important to note that listing properties on platforms like Airbnb without the required license is prohibited.
The thriving hospitality industry in Dubai, attracting around 20 million tourists annually, presents a lucrative opportunity for property owners. Simplified regulations governing licenses translate to an average premium of 25–30% for return on investment compared to long-term rentals. Additionally, the 0% tax rate on personal income within the emirates and the option to establish a company in a free zone enhance the profitability of such ventures.
Only registered and approved apartments and villas meet the criteria for conversion into holiday homes, as specified by Dubai Economy and Tourism (DET) regulations. Residential villas within gated communities and commercial villas along main roads qualify as potential candidates.
Key considerations include obtaining licenses from the Department of Economic Development (DED) and DTCM, maintaining insurance as per DTCM specifications, adhering to regulations set by the DTCM, and ensuring effective management of licensed properties. Compliance with regulations related to amenities, taxes, and guest registration is also crucial.
The process involves partnering with Smart Zones® UAE, choosing business activities, selecting a company name, applying for a license, submitting necessary documents, applying for a visa, and opening a corporate bank account. Smart Zones® UAE assists in navigating each step, ensuring a seamless process.
Required documents include a floorplan and details of the property, a fully completed application form, a No Objection Certificate (NOC) from the employer (if applicable), two color passport-size photos, a copy of the passport of proposed shareholders, and approvals from the DTCM.
The cost involves licensing fees, DTCM approval fees, an annual allowance fee of approximately AED 300 per room rented, and tourism fees ranging from AED 10 to AED 15 per bedroom. For detailed guidance on cost structure, business consulting firms like Smart Zones® UAE can provide assistance.
Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?
