Dubai has established itself as one of the most attractive tourist destinations in the world, attracting millions of tourists every year. The city is home to mega attractions, luxury shopping, landmarks, and world-class infrastructure, which keeps tourists flocking to the city. Due to this thriving tourism industry, the holiday home rental business in Dubai is growing rapidly.

Trends have changed, and many property owners and investors are choosing to rent out their apartments or villas as holiday homes instead of long-term rentals. This is a business model that usually brings in more income, especially during peak tourist seasons. However, to operate a holiday rental in Dubai, you will need to obtain a holiday home license from the relevant authorities.

Here, in this 2026 guide, we have discussed everything you need to know about obtaining a holiday home license in Dubai, including its cost, benefits, and requirements, as well as the application process. Step-by-step, and how we, Dubai Business Services Groups, can help you with it.

What is the Dubai Holiday Home License?

HOLA is a license that allows property owners or companies to rent out apartments, villas, or any other type of residential property to visitors on a short-term basis.

Dubai’s tourism authorities regulate licenses to ensure that vacation rentals comply with safety, hospitality, and performance standards. Under this license, property owners are allowed to officially list their properties on websites such as Airbnb and other online booking sites.

Holiday homes are not like hotels because they offer more space, privacy, and home-like amenities, including kitchens, living rooms, and multiple bedrooms, among other amenities.

They are particularly popular with the following groups:

• Families

• Business travelers

• Large tour groups

• Long-term visitors

Due to this growing demand, many investors see holiday homes in Dubai as a very profitable real estate venture.

The Reason Why Dubai Holiday Home Market Is Expanding

The tourism industry in Dubai is growing every year, and has been facilitated by state interventions, new attractions, and international events. This has led to the need to find alternative accommodation options other than traditional hotels.

Some of the key factors driving the holiday home market include:

High tourist numbers

Millions of international tourists visit the city of Dubai every year, and this demand inspires short-term accommodation.

Commodity D HO More flexible accommodation

Tourists prefer holiday homes because of the privacy and comfort they offer over hotel rooms.

High rental returns

In tourist destinations, STAs offer better results than long-term rentals.

Global booking platforms

Property owners have found it easier to sell their properties across borders through platforms such as Airbnb and Booking.com.

Government Assistance

Tourism authorities in Dubai have also enacted laws that have eased legal barriers for property owners to operate holiday homes.

Advantages of acquiring a Holiday Home License in Dubai

The benefits of starting a home rental business as a vacation home include many financial as well as strategic advantages.

Higher rental income

The liquidity of vacation homes can be achieved at a much better income than traditional long-term rentals, especially during peak seasonal events such as winter holidays or international events.

Strong return on investment

The tourism sector in Dubai ensures a constant demand for vacation rentals, so investing in vacation homes is profitable.

Growing tourism market

Dubai favors significant spending on tourism-related infrastructure such as entertainment venues, luxury resorts, and cultural venues.

Flexible property use

Owners have the option to rent their property to their guests for short periods and still have the option to use it during their personal stay.

Potential Golden Visa Eligibility

Investors in the real estate sector in Dubai may be allowed to obtain a long-term residence permit based on the value of their real estate investments.

100% Business Ownership

Dubai does not restrict most of its business activities and many of its activities, such as tourism-related services, can be owned by a foreigner.

Holiday Home License in Dubai (2026) Cost

The cost of a holiday home business starts with the property owner or professional operator.

Registration Fees

A standard registration fee will include:

• Registration Fee: AED 1,500

• Knowledge Fee: AED 10

• Innovation Fee: AED 10

• Total Registration Cost: AED 1,520

Tourism Dirham Fee

In addition to the registration fee, operators are required to charge guests a tourism dirham fee per night.

This fee depends on the type of property:

• Standard Holiday Home

• AED 10 per room per night

• Deluxe Holiday Home

• AED 15 per room per night

This is a fee that is paid to the Tourism Authority and reported monthly.

Extra Business Preparation Expenses

You may also need (if you intend to operate multiple properties as one company):

• Trade License

• Company Registration

• Business Bank Account

• Property Management Costs

Typically, the total cost of setting up a holiday home company in Dubai starts at around AED 13,000, not including the cost of the property.

Holiday Home License requirements in Dubai

Before applying for a license, you must meet certain eligibility criteria.

1. Property Ownership or Authorization

The applicant must either:

• own the property, or

• be authorized to operate it

2. Business License for Operators

Professional operators must have a business license to operate vacation home rental activities.

3. Matching Owner Details

If the property owner is applying under his/her name, the name on the application form must be the same as the title page of the property.

4. Annual Information Updates

Important documents such as business licenses are required to be renewed every year but in certain situations, renewal fees are waived.

5. Limit on Units

Homeowners are allowed to register up to 8 vacation home units under the account.

Documents that are applicable in the issue of a Holiday Home License

To obtain a holiday home in Dubai, applicants will need to submit a number of documents.

These typically include:

• Copies of Emirates ID (in the case of property owners)

• Copies of shareholder passports (in the case of a company)

• Property title deed

• Completed application form

• Floor plan of the property

• Property description and specifications.

• Trade license (commercial operators).

• 2 passport-sized photographs.

• Tourism government approval.

Make sure all documents are correct and complete as this can greatly speed up the approval process.

How To Obtain A License To Rent A Holiday Home Step By Step

The process of obtaining a license is complex in many ways.

Step 1: Register an account

Register on the official holiday homes portal maintained by the Dubai Tourism Authority.

Step 2: Fill out the online application

Register on the online form using personal information, property details, and business activity.

Step 3: Submit the required documents

Provide all the required documents such as ownership documents and identification documents.

Step 4: Submit the application

After verifying all the information, submit the application.

Step 5: Register the registration fee

Pay the required fee using the internet or authorized payment methods.

Step 6: Get approval

This process usually takes less than one working day and then you are allowed to operate the holiday home.

Further Reading: How to Cancel Partner Visa in UAE: All You Need To Know In 2026?