Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified United Arab Emirates tax professional before filing.
Dubai, United Arab Emirates · United Arab Emirates · Short-term rental taxes
Short-Term Rental Taxes in Dubai, United Arab Emirates
Short-term rental taxes in Dubai: get a DET holiday home permit, collect the Tourism Dirham of AED 10–15 per room-night, and watch the AED 375,000 VAT and AED 1 million Corporate Tax thresholds.
The 30-Second Answer
- Short term rental taxes in Dubai start with a licence: under Decree No. 41 of 2013, nobody may lease out a holiday home unless licensed by DET (Department of Economy and Tourism). An owner can permit their own unit — AED 370 for a studio or one-bedroom plus AED 300 per extra bedroom — or hand it to a licensed holiday-home operator.
- Every stay carries the Tourism Dirham: AED 10 (standard) or AED 15 (higher category) per room per night, for up to 30 consecutive nights. DET's Holiday Homes system raises the payment order on the 11th of each month.
- There is no personal income tax, so the estimator shows 0%. But the FTA treats DET-permitted holiday-home income as a licensed business: once your business turnover passes AED 1 million a year, Corporate Tax applies (0% to AED 375,000, 9% above).
- VAT registration (5%) becomes mandatory above AED 375,000 of taxable supplies in 12 months — and Airbnb does not collect Dubai fees or VAT for you, so the permit holder charges and pays them.
Deductions
What Dubai Holiday-Home Hosts Can Deduct
With no personal income tax, deductions only reduce tax once your holiday-home business is inside Corporate Tax — but these are the costs the FTA expects a Dubai host to evidence.
The Tourism Dirham is collected from guests and paid to DET, so it is neither your income nor your expense. If you also let a unit on a long-term Ejari tenancy, split shared costs between the two — the FTA's Dubai worked example apportions by property value.
Filing Calendar
Key Dates & Filing Calendar
Dubai hosts deal with a monthly DET cycle for the Tourism Dirham, plus federal VAT and Corporate Tax deadlines once they cross the thresholds.
Operating without a DET licence breaches Decree No. 41 of 2013: fines run from AED 200 to AED 20,000 per violation, double for a repeat within a year (capped at AED 100,000), and DET can suspend or cancel the permit.
Dubai Decree No. 41 of 2013; DET Holiday Homes System User Guide (dubaidet.gov.ae); FTA — natural persons Corporate Tax registration (tax.gov.ae)
Owner vs. Operator
Permit It Yourself or Use a Licensed Operator?
DET's system lets you register either as a property owner or as a company. The route you choose changes who collects the Tourism Dirham, who invoices guests and who carries the Corporate Tax and VAT exposure.
Owner-permitted holiday home
You hold the DET permit for your own unit
- Register the unit in DET's Holiday Homes system as a property owner and pay the permit fee (AED 370 + AED 300 per extra bedroom).
- You collect the Tourism Dirham from guests and settle DET's monthly payment order.
- Income counts as licensed business turnover for the AED 1 million Corporate Tax test (FTA guide CTGREI1).
- You register for VAT yourself once taxable supplies exceed AED 375,000.
No Corporate Tax while your total business turnover stays at or below AED 1 million a year
Licensed holiday-home operator
A DET-licensed company runs the unit
- The operator holds the licence, manages bookings and handles Tourism Dirham payments to DET.
- Operator fees reduce your net income; agree in writing who invoices guests and who reports the revenue.
- The operator company files Corporate Tax and, above the threshold, VAT in its own name.
- Check your agreement: how the rent flows to you decides whether your side is business turnover or Real Estate Investment — confirm with a tax agent.
The operator company is a Corporate Tax payer: 0% up to AED 375,000 of taxable income, 9% above
Depreciation
Depreciation for Dubai Holiday Homes
Dubai has no emirate-level income tax, and the federal Corporate Tax has no statutory depreciation tables — depreciation only matters once you are a Taxable Person.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Apartment or villa (excluding land) | Useful life under your accounting policy (IFRS) | Relevant only once your holiday-home business is a Corporate Tax payer. |
| Furniture, appliances & soft furnishings | Useful life under your accounting policy (IFRS) | Short lives are common for guest-facing items — document the policy you use. |
| Any asset — host below AED 1 million turnover | No tax effect | No personal income tax, so depreciation reduces nothing — keep the register anyway. |
Holiday homes wear fast. Keep a simple fixed-asset register of furniture, appliances and fit-out with invoices — it costs nothing now and is exactly what an accountant needs if you cross AED 1 million.
There is no separate recapture tax in Dubai. If you are a Taxable Person, a gain on selling a holiday-home unit used in the business flows into taxable income; below the threshold there is no income tax on the gain.
Tourism Dirham
Dubai's Tourism Dirham: the Occupancy Tax on Holiday Homes
Dubai's version of an occupancy tax or lodging tax is the Tourism Dirham, a fixed fee per room per night set by Executive Council Resolution No. 2 of 2014 and paid to DET.
The fee depends on the holiday home's DET category and is charged per occupied room per night, for up to 30 consecutive nights of a stay. It is a guest charge you pass through — collect it, then pay DET's monthly payment order.
AED 10–15 per room-night + 5% VAT if you are VAT-registered
Dubai Executive Council Resolutions No. 2 and No. 10 of 2014 (dlp.dubai.gov.ae); DET Holiday Homes System User Guide (dubaidet.gov.ae)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb does not collect Dubai fees — the permit holder collects the Tourism Dirham and pays DET | Build the Tourism Dirham into the guest price or collect it separately, and record it as a liability, not income |
| Booking.com / Vrbo booking | Permit holder collects and pays DET unless the platform confirms otherwise in writing | Reconcile each month's room-nights against DET's payment order |
| Operator-managed booking | The licensed operator collects the Tourism Dirham and pays DET under its licence | Your statement should show Tourism Dirham separately from your net rent |
Dubai hotel bills can also show a municipality fee and a service charge under separate hotel rules; DET's holiday-home guidance we reviewed sets out only the permit fees and the Tourism Dirham, so confirm with DET before adding any other fee to a guest invoice. VAT on the stay is federal: the FTA treats hotel-like accommodation as standard-rated at 5%.
Platforms
Airbnb Tax in Dubai: What the Platforms Do (and Don't)
Listing on Airbnb, Booking.com or Vrbo does not move the Tourism Dirham, VAT or Corporate Tax off your plate — DET's system and your own records are the reporting trail.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | No UAE reporting duty we could verify — self-report | No — the UAE is not on Airbnb's collect-and-remit list | Earnings and payout reports in your host account |
| Booking.com | No UAE reporting duty we could verify — self-report | Not confirmed — permit holder remains responsible to DET | Reservation statements and invoices in the extranet |
| Vrbo | No UAE reporting duty we could verify — self-report | Not confirmed — permit holder remains responsible to DET | Payout history in the owner dashboard |
| Licensed operator / direct | Operator reports under its own licence; direct stays are yours to record | Operator or owner pays DET through the Holiday Homes system | Operator owner statements; your own invoices for direct stays |
Using Multiple Platforms?
One DET permit covers the unit whichever platform the guest books through, and the Tourism Dirham is due on every occupied room-night. Add revenue from Airbnb, Booking.com, Vrbo and direct stays together each month — the AED 375,000 VAT and AED 1 million Corporate Tax thresholds count all channels combined.
DAC7 Does Not Apply in Dubai
DAC7 is an EU directive; the UAE is not in the EU, and we found no UAE rule requiring platforms to report host earnings to the FTA. In Dubai the oversight comes from DET instead: every permitted unit is registered in the Holiday Homes system, guest stays are checked in there, and Tourism Dirham payment orders are generated from that data each month.
Airbnb Help Center — article 2509 (airbnb.com); DET Holiday Homes System User Guide (dubaidet.gov.ae)
Illustrative P&L: One Owner-Permitted Two-Bedroom Unit
Example for a Dubai owner letting one two-bedroom holiday home with AED 220,000 of annual room revenue. For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
DET can inspect your permit records, and the FTA can ask you to prove which side of the VAT and Corporate Tax thresholds you are on.
| Keep | How long | Why |
|---|---|---|
| DET permit, amendments and unit details | While you operate, and 7 years after | Shows the unit is licensed — and that its income is business turnover for Corporate Tax |
| Guest check-ins and room-night logs | While you operate, and 7 years after | Reconciles to the Tourism Dirham payment orders DET issues each month |
| Tourism Dirham payment orders and receipts | While you operate, and 7 years after | Proves the fee was passed through to DET, not kept as income |
| Monthly revenue by channel and invoices for costs | At least 7 years after the tax period | Evidence for the AED 375,000 VAT and AED 1 million Corporate Tax thresholds |
| Operator agreement and owner statements | At least 7 years after the tax period | Shows who invoiced guests and who reported the revenue |
Decree No. 41 of 2013 requires licensees to keep paper and electronic records of all information relating to their holiday homes. Keep DET records alongside your tax records so one set answers both regulators.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational summary based on Dubai and UAE federal primary sources as of September 2026. DET fees and categories change — confirm on dubaidet.gov.ae and with a registered tax agent before pricing or filing.
- Dubai Decree No. 41 of 2013 — Leasing out Holiday Homes — DET licence required; record-keeping; fines AED 200–20,000. dlp.dubai.gov.ae/Legislation%20Reference/2013/Decree%20No.%20(41)%20of%202013.html
- Dubai Executive Council Resolution No. 2 of 2014 — Tourism Dirham — Holiday homes AED 10 / AED 15 per room per night. dlp.dubai.gov.ae/Legislation%20Reference/2014/Executive%20Council%20Resolution%20No.%20(2)%20of%202014.html
- Dubai Executive Council Resolution No. 10 of 2014 — Tourism Dirham charged for a maximum of 30 consecutive nights. dlp.dubai.gov.ae/Legislation%20Reference/2014/Executive%20Council%20Resolution%20No.%20(10)%20of%202014.html
- DET — Holiday Homes System User Guide — Permit fees AED 370 + AED 300 per extra bedroom; monthly payment orders on the 11th. dubaidet.gov.ae/en/our-services/for-consumers-and-students/-/media/det-sme-cr-release-1-new-media-files/pdfs/guest-accommodation/holiday-homes-system-user-guide-en.pdf
- FTA — Real Estate Investment for Natural Persons (CTGREI1) — A DET holiday-home permit is a Licence; Dubai worked example (Example 10). tax.gov.ae/Datafolder/Files/Pdf/2024/Real-Estate-Investment-for-natural-persons-22-10-2024.pdf
- FTA — Corporate Tax basis for natural persons — AED 1 million turnover test. tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/basis.of.taxation.natural.person.aspx
- Ministry of Finance — Cabinet Decision No. 116 of 2022 — 0% up to AED 375,000 of taxable income; 9% above. mof.gov.ae/en/news/ministry-of-finance-confirms-applicable-taxable-income-threshold-for-corporate-tax-abu-dhabi-uae/
- FTA — Registration for VAT — Mandatory above AED 375,000 of taxable supplies. tax.gov.ae/en/taxes/Vat/vat.topics/registration.for.vat.aspx
- Airbnb Help Center — Areas where Airbnb collects and remits tax — UAE not listed as of September 2026. airbnb.com/help/article/2509
Questions
Frequently Asked Questions — Dubai STR Taxes
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