Holiday Home License Dubai, UAE: 2022 Updated Guide

With around 15m visitors travelling to Dubai every year, the emirate is a hotspot for holiday home rental.

Knight Frank’s Dubai Holiday Homes Market Review 2019 reported over 10,000 active listings out of a total of 20,395 present on Airbnb. At the time, Dubai’s holiday homes accounted for 2% of the emirate’s total households.

As the world reopens following the events of 2020, we can only expect these figures to increase. And for entrepreneurs looking to enter this space, now is the time.

Whether you intend to list your own properties or manage accommodation on behalf of others, when you set up with the help of Meydan Free Zone, you can be up and running in no time. Our team are experts in business setup in Dubai and can help you with licensing, visas, and much more.

Holiday Homes in UAE

With Dubai’s contribution to the World Expo 2020, and booming real estate industry, holiday homes are the new choice that the market is optimistic about. A prominent reason as to why entrepreneurs visiting Dubai are positively attracted to holiday homes would be because of its higher revenue generation in comparison to regular apartment renting and annual home rents. With fascinating technological facilities, luxury-embedded tourism, and a prosperous economy, holiday homes in the UAE may be a potentially profitable option for earning significant income in the UAE.

Benefits of Starting a Holiday Home Business in Dubai

Impressive returns and increasing demand are two of the many reasons to start a holiday home business in Dubai. But they are just the beginning. Yet they are only a few of the many benefits you will receive by obtaining a holiday home license in Dubai.

There is also the UAE’s attractive tax rate of 0% on both corporate and personal income. Plus, the many benefits of setting up in a Dubai free zone, including 100% customs tax exemption and the freedom to repatriate capital and profits.

When you start your business in Meydan Free Zone, you’ll also benefit from:

Premier location

Being at one of the most sought after centrally located commercial addresses in Dubai puts you minutes away from major pulse points and vital commercial and financial hubs of the city. Being surrounded by towering skyscrapers clad in glass, having access to some of the world’s most efficient infrastructure systems and witnessing an ample of entertainment or enjoying dozens of eateries will definitely attract a large base of potential customers that would want to rent your home for a fantastic holiday.

Easy startup

Benefit from a smooth registration process with access to priority government relations assistance and broad support services, tailored to address your individual business needs. From services ranging from documentation to bank account setups, Meydan Free Zone is ready to help throughout all the processes and requirements.

A great place to live and work

Take advantage of the unique opportunity to live and work in Meydan’s premium mixed-use developments offering innovative office spaces that encourage business growth. You can access great hotelier services, work environments designed for higher productivity and businesses with support services to amp up your marketing and advertising of holiday home management.

Steps to Get your Holiday Home License in Dubai, UAE

At Meydan Free Zone, we can guide you through the following steps to help you secure your holiday home license in Dubai.

The first step is to choose and register your company name.

The UAE has a very clear set of a naming parameters that you’ll need to stick to. But don’t worry, all are straightforward and largely common sense. Essentially, you should avoid blasphemous and offensive language and names of well-known organisations. There are a few more rules too which we will cover in your initial consultation.

At this stage, it is also important to align your business practices to the list of permitted activities. Holiday homes businesses operate under the activity ‘Vacation Homes Rental’. The objective here is to receive instant approval from the Department of Economic Development (DED) where your business name and activities are reviewed for appropriateness and suitability to Dubai’s regulations.

This allows you to rent accommodation ‘…to vacationers on a daily, weekly, monthly or annual basis.’

With this early part of the process successfully navigated, we can help you apply for your holiday home license. You can apply for your holiday home license in the Dubai mainland or in a UAE free zone such as Meydan depending on your business objectives, target customers and activities.

As part of your trade license application, you will need to submit a form containing details about your business and its shareholders, as well as proof of address and identification.

As well as obtaining your trade license, you will also need to gain approval from the Department of Tourism and Commerce Marketing (DTCM). Your properties must be registered and inspected regularly as part of this approval process.

Once approved, you will receive an official DTCM certificate of registration which must be displayed within your property.

We’ll also help you obtain your visa. As part of this process, you will be required to undergo a fitness test, blood test, and chest x-ray. You can also sponsor the visas of others such as dependent children and parents, your spouse, and any domestic staff.

Finally, if you’re getting paid in the UAE, you’ll need a corporate bank account. Meydan Free Zone can help with this step too, advising on the right financial institution for your needs and circumstances.

Cost of a Holiday Home License in Dubai, UAE

The cost of starting a holiday home rental business in Dubai will depend on many factors. You will need to account for both your trade license and DTCM fees.

There is another fee to consider too. A levy of AED 300 per year is applied for each room that you rent out, up to an annual total of AED 1,200. Plus, an additional tourism fee of AED 10-15 per bedroom.

Then, of course, there is the cost of maintaining, managing, and listing your property. For a full breakdown of costs get in touch with the team at Meydan Free Zone.

Working with Meydan Free Zone

Meydan Free Zone is a thriving, centrally located economic district with one of the most prestigious business addresses in the region.

We offer our businesses a host of innovative investment and lifestyle benefits in a secure regulated environment that empowers productivity. And we can help you join them too.

Our expert team can assist across the entire company formation journey, from registering your company name to managing your license and visa applications.