Starting An Airbnb In Dubai

[Chris25296]

I want to ask a question about the Dubai Short-Term Rental Market. I have done some research and saw where they said you need to register each unit with DET( Department of Economy & Tourism. My question here is do I also have to register a company when starting out with one apartment, or is it when I reach the taxable AED375,000 and cross the minimum number of apartment thresholds?

 Because I want to test the market by renting an apartment long term and see how it goes, but I need to understand a few schematics, will appreciate your replies.

[Emiel1]

@Chris25296 

I can not answer your questions, but maybe you will find some answers in this article :

Responsible hosting in Dubai:

https://www.airbnb.com/help/article/1522

[Paula]

Hello @Chris25296,  thanks for bringing your question to the community.

Have you had a chance to review the article shared by Emiel? Did it help answer your question?

I’m reaching out to two hosts in Dubai to see if they can shed some light on this: @Ahmed570 and @Shady2

Regards,

[Chris25296]

Hello @Paula,

Yes, and I am doing my own research too.

[Shady2 · Accepted solution]

Hi Chris,

Great question! Here’s what I can share based on my experience:

1.⁠ ⁠Registering with DET: Yes, each unit you want to list on Airbnb in Dubai must be registered with the Department of Economy & Tourism (DET). This applies whether you have one unit or more.

2.⁠ ⁠Company Registration: You are allowed to list up to 8 owned properties without needing to register a company. However, if you're listing unowned properties or planning to manage multiple units for other people, you must register a company and obtain a Holiday Home License from DET. This ensures you are compliant with both DET regulations and Airbnb’s listing conditions.

3.⁠ ⁠Testing the Market: Renting an apartment long-term before listing it short-term can be a good strategy to gauge the demand, but remember, if you’re considering listing it as a short-term rental, you will need to comply with DET’s registration and other requirements.

Hope this clears things up! Feel free to reach out if you need more help or have further questions.

Best of luck with your venture!

Shady *

*[Sensitive information removed in line with the Community Center Guidelines]

[Chris25296]

Hello Shady,

Thanks for your reply

You said the limit on owned properties before registration is 8. What about the limit on unowned properties(long-term rental properties) ?

How many do I have to rent long-term or manage to consider it an overlimit for me to register a company

If you do not understand, I can rephrase it.

Looking forward to your reply

[Shady2]

Hi Chris ☺️,

Great question! Here’s what I can share based on my experience:

1.⁠ ⁠Registering with DET: Yes, each unit you want to list on Airbnb in Dubai must be registered with the Department of Economy & Tourism (DET). This applies whether you have one unit or more.

2.⁠ ⁠Company Registration: You are allowed to list up to 8 owned properties without needing to register a company. However, if you're listing unowned properties or planning to manage multiple units for other people, you must register a company and obtain a Holiday Home License from DET. This ensures you are compliant with both DET regulations and Airbnb’s listing conditions.

3.⁠ ⁠Testing the Market: Renting an apartment long-term before listing it short-term can be a good strategy to gauge the demand, but remember, if you’re considering listing it as a short-term rental, you will need to comply with DET’s registration and other requirements.

Hope this clears things up! Feel free to reach out if you need more help or have further questions.

Best of luck with your venture!

Shady Ibrahim 

[Shady2]

Hi Chris ☺️,

Great question! Here’s what I can share based on my experience:

1.⁠ ⁠Registering with DET: Yes, each unit you want to list on Airbnb in Dubai must be registered with the Department of Economy & Tourism (DET). This applies whether you have one unit or more. 2. Company Registration: You are allowed to list up to 8 owned properties without registering a company. However, if you're listing unowned properties or planning to manage multiple units for other people, you must register a company and obtain a Holiday Home License from DET. This ensures you are compliant with both DET regulations and Airbnb’s listing conditions. 3.⁠ ⁠Testing the Market: Renting an apartment long-term before listing it short-term can be a good strategy to gauge the demand, but remember, if you’re considering listing it as a short-term rental, you will need to comply with DET’s registration and other requirements.

Hope this clears things up! Feel free to reach out if you need more help or have further questions.

Best of luck with your venture!

Shady Ibrahim 

[Grand-Luxury0]

Hi ! 
yes you need to register a company under the activity “Holiday Homes Rental” this trade license will allow you to extract a professional permit as a host in Dubai and it will allow you to manage 1000s units in the same time, yes you meed to apply for DTCM permit for each unit, there are some regulations in that terms. You don’t need to register your company with VAT if your sales don’t reach the 375k annually, however receiving the landlord’s income from Airbnb directly to your company bank account will be considered as your gross income as a company even of you transfer 80% from this income back to the landlord you still are eligible to collect vat on sales above the mentioned amount if you exceed them annually and you will do if you have more than 10 units.

the market in Dubai is different, you will need a physical office to be able to obtain the trade license and also you will need strong marketing campaign bcz the landlords who desire giving their units for a host don’t have option to reach the host via Airbnb directly instead they reach the host via the social media or the website. 

[Priyanka102]

The AED 375,000 figure is the VAT registration threshold, not the point at which DET licensing begins. Every apartment must have a valid DET holiday-home permit before being listed. DET’s individual route is intended for property owners, who may register up to eight of their own units. Since you plan to rent an apartment and sublet it on Airbnb, you should obtain written landlord permission and will likely need a licensed holiday-home company arrangement from the start. Confirm this directly with DET before signing a long-term lease, as building rules may also restrict short-term rentals.

[Tania-Maria-Teresa0]

Hi Chris. Your question was very clear- must you register a company when starting out with one apartment? This is my question too. I don't believe you received an answer...did you? If so, could you please share details?

[Dinamarta-Jose0]

Hi Chris,

Testing the market with one apartment before expanding sounds like a sensible approach, but I would make sure all the legal and contractual pieces are confirmed before signing a long-term lease.

Since you would be renting the apartment yourself and then offering it as a short-term rental, I would specifically confirm that the landlord gives you permission to do so and that the property can legally be registered for short-term stays.

I would also verify the current DET licensing and business requirements directly with the appropriate Dubai authorities, especially regarding whether an individual can operate a single unit without establishing a company. Tax thresholds and licensing requirements are not necessarily the same thing, so I wouldn’t assume that reaching the AED 375,000 threshold is what determines when a company is required.

It’s definitely worth getting those answers before committing to the lease. Wishing you success with your first property!