Listing a Dubai apartment on Airbnb or Booking.com without a permit is not a grey area. Short-term rentals need a holiday home permit from Dubai Economy and Tourism. The surprise for most owners is how small the government fee is next to the other costs. This guide shows the official fees, the Tourism Dirham that guests pay, and a worked example comparing permit costs with platform fees.
- One-time registration reported at AED 1,520, plus an annual permit from about AED 370 for a studio or 1-bedroom.
- Tourism Dirham is AED 10 (standard) or AED 15 (deluxe) per room per night, paid by the guest and remitted monthly.
- You need a title deed or owner permission, a utility bill, an inspection and a building that allows short-term lets.
- Published first-year totals vary by source, from roughly AED 1,900 to 2,800.
The official fees at a glance
| Property | Annual permit | One-time registration | Year-one total |
|---|---|---|---|
| Studio or 1-bedroom | AED 370 | AED 1,520 | AED 1,890 |
| 2-bedroom | AED 670 | AED 1,520 | AED 2,190 |
| 3-bedroom | AED 970 | AED 1,520 | AED 2,490 |
| 4-bedroom or villa | AED 1,270 | AED 1,520 | AED 2,790 |
These figures come from several owner guides and may change, so confirm them on the official portal before paying. An inspection fee of around AED 320, a refundable utility deposit and building-level charges can come on top. Renewals charge the annual permit only, not the registration again.
Tourism Dirham: a pass-through you must collect
The Tourism Dirham is charged per room per night, regardless of how many guests stay. It is AED 10 for standard properties, AED 15 for deluxe, and some guides list AED 20 for premium. You collect it from the guest and remit it to the authority monthly, so a missed filing builds up quickly. A 2-bedroom standard unit booked for five nights generates AED 100 (2 rooms x 5 nights x AED 10).
Worked example: the permit vs the platform
Take a 2-bedroom standard unit at AED 500 a night with 60% occupancy, about 219 nights a year. These are illustrative assumptions, not forecasts.
| Line | Calculation | AED |
|---|---|---|
| Gross rental income | 219 nights x 500 | 109,500 |
| Platform host fee (about 15.5% reported) | 109,500 x 15.5% | 16,973 |
| Permit and inspection, year one | 1,520 + 670 + 320 | 2,510 |
| Tourism Dirham (paid by guests) | 2 rooms x 219 nights x 10 | 4,380 pass-through |
The government permit and inspection cost about 2.3% of gross income in year one, against roughly 15.5% for the platform. That is why owners should compare management and platform fees, not just the permit.
Requirements checklist
- Title deed, or a tenancy plus written landlord permission to sub-let short-term.
- Passport and Emirates ID of the owner.
- Utility bill in the owner’s or company’s name.
- Building approval. Many building bylaws do not permit short-term lets, so check first.
- Inspection and classification of the unit by the authority.
- Guest ID records kept for each stay.
Owner or operator?
A private owner renting out their own unit uses the permit above. If you run several units or manage other people’s property as a business, you generally need a trade licence as an operator, which brings its own costs and category rules, see our guide to Dubai trade licence types and the mainland cost breakdown.
Tax and compliance on rental income
Short-term accommodation is generally treated as a taxable supply for VAT, so large operators should watch the registration threshold, see VAT registration. If you earn through a company, review Small Business Relief and corporate tax deductions in our deductions guide. Keep a separate bank account, see business account approval.
FAQ
What if I rent without a permit? Fines apply, and published amounts vary widely from a few thousand dirhams upward, so treat it as a real risk.
Do I need a permit for long-term rentals? No. Long-term tenancies follow a different regime with Ejari registration.
Check current rules and fees with Dubai Economy and Tourism. Planning a holiday home business? Ask BizDaddy to structure it properly.
