As one of the most sought-after holiday destinations, Dubai welcomed over 18.7 million visitors in 2024. That is a 9% from the previous year. This constant influx of tourists has created a high demand for vacation rentals and presents an opportunity for investors to invest in holiday homes.
If you are thinking about capitalizing on this opportunity, getting a holiday home license is your first step. In this article, we will walk you through the essentials of securing a holiday home license in Dubai to start your renting out properties.
Types of Holiday Homes in Dubai
According to Article 8 of Administrative Resolution No. 1, 2020 related to holiday homes, the following properties can be used as holiday homes in Dubai:
- An apartment unit in a residential building or a building designated for the activity
- A house or a villa located within a real property compound
- An independent villa
Who can Rent out Properties for Holiday Homes in Dubai?
As per the Department of Tourism and Commerce Marketing (DTCM) guidelines, there are three main categories of entities that can obtain a license to operate holiday homes in Dubai.
- Individual Property Owners: Individual owners can operate up to 8 holiday homes under their license. If an individual owner wishes to manage more than eight units, they must apply for a company license.
- Companies: Companies can either sub-lease properties as holiday homes from the owners, or they can solely manage holiday home properties owned by others.
- Individual Tenants: Individual tenants can sub-lease a maximum of one unit from the property owner as a holiday home (great for digital nomads)
We will specifically talk about getting a holiday home license as a company as it gives you the freedom to manage multiple properties whether owned by you or others.
Process to Get a Holiday Home License in Dubai
1. Company Registration
If you want to have multiple holiday homes across the Emirates (and possibly abroad), the first step is to register a mainland company in Dubai.
It is advisable to have a minimum number of partners/owners in the company at the beginning. That is because DTCM requires a certificate of good conduct for all owners, partners, and the managing director when applying for a holiday home license.
Moreover, It is important to have an office space or an address with a 1-year Ejari rental agreement as it is checked during the license application process.
If you need assistance, Emerhub’s team of experts can help you set up your mainland company in Dubai and get the Ejari agreement for your business.
2. Obtaining the Holiday Home License
Before you can legally start offering your properties as holiday homes in Dubai, it is mandatory to obtain a holiday home license from the DTCM.
This process involves two steps.
- Initial approval from the DTCM: For the initial approval, DTCM verifies the identity documents and certificate of good conduct for company owners, partners, and managing director along with the commercial license.
- Obtaining the license: After the initial approval, the next step is to submit all necessary documents including a proof of address to conduct the activity. If all requirements are met, DTCM requires the applicant to pay the license fee and issues the license.
This license gives your company the right to sub-lease holiday homes and is usually valid for one year. However, DTCM may issue a license for up to 4 years if the applicant pays the license fee for the whole term of the license.
3. Applying for a Holiday Home Permit
After getting the holiday home license, it is also mandatory to apply for the holiday home permit for your properties. This permit is issued by the DTCM for each unit, certifying that the property meets the requirements and can be used as a holiday home.
During this process, DTCM inspects the holiday home to ensure that it meets all the criteria of a holiday home as per the Holiday Home Guide.
4. Maintaining Your Holiday Home
Once you have obtained your holiday home license and permit, there are a few ongoing requirements that must be met to ensure compliance and maintain the validity of your license.
These requirements include:
- Placing the license in a clear and visible location in your holiday home.
- Extending your license and holiday home permit after 1 year.
- Having a comprehensive insurance policy issued by an insurance company licensed to operate in the Emirate. It must cover any potential damages or liabilities that may arise during a guest’s stay.
- Payment of tourism taxes.
Applicable Fines
When operating and managing holiday homes in Dubai, you must have the appropriate license and permits. Operating a holiday home without the proper license from DTCM or violating any of the guidelines can result in penalties, suspension of activity, or revocation of license.
Keep in mind that if you repeat the same violation within 1-year, the fine will be doubled.
Below is a table detailing the fines for specific violations related to the operation of Holiday Homes.
| Violation | Penalty (AED) |
| Not having a license to operate the Holiday Homes | 5000 |
| Failure to provide maintenance services for Holiday Homes regularly | 2000 |
| Leasing out Holiday Homes without obtaining the prior approval of the DTCM | 2000 |
| Not having an insurance policy | 2000 |
| Providing false or incorrect information or documents to the DTCM | 5000 |
Get Your Holiday Homes License with Emerhub
From company registration to getting holiday home permits for your properties, Emerhub handles the entire process for you. Our experts are well-versed in UAE regulations, ensuring you comply with every requirement to obtain necessary approvals and can start your holiday home rental business as quickly as possible.
For a more tailored discussion, fill out the form below.
