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Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Sept 23, 2025
Dubai is a popular tourist destination, and people need somewhere to stay. That's why starting a short-term rental business like Airbnb might be a great idea. Indeed, stats show that there are already more than 34,000 properties available for rent in Dubai, and this number is growing.
In this article, we will discuss everything you need to know about starting a business in this niche. We will also provide a step-by-step plan for getting started and explain what to watch out for to avoid difficulties.
In this article, we will discuss everything you need to know about starting a business in this niche. We will also provide a step-by-step plan for getting started and explain what to watch out for to avoid difficulties.
- Overview of short-term rental market in Dubai
- So, is Airbnb business profitable in Dubai?
- Benefits to start an Airbnb business in Dubai
- Starting an Airbnb business in Dubai
- Legal requirements for Airbnb business in Dubai
- Step-by-step guide for starting an Airbnb business in Dubai
- Documents required to start an Airbnb business in UAE (Dubai)
- Cost of starting an Airbnb business in UAE (Dubai)
- Tips for preparing and listing your Airbnb property for guests
- Taxation and fee structures
Overview of short-term rental market in Dubai
Dubai is a global tourist and business hub, so there are many visitors (leisure, business, events) needing short-stay accommodation. These are areas where short-term rentals are in especially high demand, such as Downtown Dubai, Dubai Marina, Jumeirah Beach Residence (JBR), Palm Jumeirah, and Business Bay. The number of active Airbnb-style holiday home listings has doubled over the past few years.
However, there are some factors that could have a negative impact on your business. For example, seasonality has a significant impact on this business. During the busy season, which runs from October to April, demand is usually higher and prices are higher. Conversely, demand and prices tend to be lower during the summer. Also, competition is increasing with more hosts and professional management companies. Therefore, differentiation through amenities, service, design, and location becomes very important.
However, there are some factors that could have a negative impact on your business. For example, seasonality has a significant impact on this business. During the busy season, which runs from October to April, demand is usually higher and prices are higher. Conversely, demand and prices tend to be lower during the summer. Also, competition is increasing with more hosts and professional management companies. Therefore, differentiation through amenities, service, design, and location becomes very important.
So, is Airbnb business profitable in Dubai?
In short, yes, Airbnb and other short-term rentals can be quite profitable in Dubai.
Do you want to know more about why this is a profitable business? Let's take a look at the numbers:
-
~ AED 158,698 (US$43,242)
Average annual revenue for an Airbnb-style short-term rental in Dubai (from June 2024 to May 2025) -
71%
Average occupancy rate -
9%
Year-over-year (YoY) revenue growth in Dubai
-
~ AED 623 (USD 170)
Average daily rate (ADR) -
34,000+
Active listings in Dubai
These numbers indicate strong demand and good money-making potential, particularly in popular tourist or luxury destinations. However, it all depends on your location, the type of property you have, its operating costs, and your management skills.
Benefits to start an Airbnb business in Dubai
- There is high demand due to tourists, business visitors, and events.
- Potential for high income when property is in prime location.
- Good infrastructure, including airports, transportation, hotels, and attractions, makes Dubai attractive.
- Flexibility: You can manage one unit or many, and when business slows, you can either let it go long-term or use it for yourself.
- Low personal income tax: currently, there is no personal income tax on rental profits for individuals under certain conditions.
Starting an Airbnb business in Dubai
If you're thinking of starting a business, the first thing you need to do is take care of all the legal details. Make sure you're properly registered so you can start making money without getting into trouble. Having a reliable partner who is well-immersed in local laws and regulations makes this much easier.
Legal requirements for Airbnb business in Dubai
To legally operate a short-term rental or holiday home in Dubai, property owners need to get a license from the Tourism and Commerce Department (DTC). This ensures that all short-term rentals meet the quality, safety, and comfort standards set by DTC.
Documents and permits
Property owners who want to apply for a holiday home license need to register an account. They need to do this on the DTCM Holiday Homes website.
Documents and permits
Property owners who want to apply for a holiday home license need to register an account. They need to do this on the DTCM Holiday Homes website.
The fee for this permit includes AED 1,520 plus a per-room charge ranging from AED 370 for a studio to AED 1,270 for a four-bedroom or larger unit.
Safety
Your property must be safe and up to code. This includes having fire alarms and smoke detectors. You should also check if your building or community permits short-term rentals or sublets and if there are any restrictions on vacation homes. There may be rules from the building management or homeowners association.
Taxes
You need to collect a nightly tourism fee from your guestsю The amount depends on whether they're in a standard or deluxe room). Include that in your invoices separately and send that fee to DET every month. The current rates are AED 15 per night for a Deluxe room and AED 10 per night for a Standard room.
Your property must be safe and up to code. This includes having fire alarms and smoke detectors. You should also check if your building or community permits short-term rentals or sublets and if there are any restrictions on vacation homes. There may be rules from the building management or homeowners association.
Taxes
You need to collect a nightly tourism fee from your guestsю The amount depends on whether they're in a standard or deluxe room). Include that in your invoices separately and send that fee to DET every month. The current rates are AED 15 per night for a Deluxe room and AED 10 per night for a Standard room.
Although the UAE does not have a personal income tax, you will still have to pay Corporate Tax if your earnings exceed AED 375,000 per year. We've gone over this in detail and explained how Corporate Tax work for freelancers. If you're still not sure about what taxes you owe from your rental business, or how much, just give us a call. We're here to help you with your taxes.
Step-by-step guide for starting an Airbnb business in Dubai
We will not discuss how to find the right property or how to renovate it. Our area of expertise is documentation and taxes. Below, you will find a step-by-step plan on how to legally register your business.
1
Make a draft
Write a detailed business description or a business plan for your future company. Whether you set up a property rental business or work as a freelance agent, you'll need to do this anyway.
Write a detailed business description or a business plan for your future company. Whether you set up a property rental business or work as a freelance agent, you'll need to do this anyway.
2
Turn it into a masterpiece
Send us this description by email. We can study it and clarify the details.
Send us this description by email. We can study it and clarify the details.
3
Сhoose a jurisdiction
Based on your goals and the information we have in our database on all the jurisdictions in the UAE, we'll find the best place for your Airbnb business.
Based on your goals and the information we have in our database on all the jurisdictions in the UAE, we'll find the best place for your Airbnb business.
4
Activity selection
It's important to choose the right business activity because it affects your taxes. This is especially true if you're starting a company that won't only be doing short-term rentals.
It's important to choose the right business activity because it affects your taxes. This is especially true if you're starting a company that won't only be doing short-term rentals.
5
Company name registration
We'll help you choose a business name that suits local registration requirements and reserve it for you. If you're a freelancer, we can assist with registration as well.
We'll help you choose a business name that suits local registration requirements and reserve it for you. If you're a freelancer, we can assist with registration as well.
6
Get a license
Once we have gathered all the necessary paperwork and submitted the application, we can help you obtain a business license. If you need help finding office space, we can assist you with that as well.
Once we have gathered all the necessary paperwork and submitted the application, we can help you obtain a business license. If you need help finding office space, we can assist you with that as well.
7
Additional consultations
We'll give you free advice. This advice will be on taxes, reporting, bookkeeping, and running your business in general. We'll make sure you don't get scared when you start.
We'll give you free advice. This advice will be on taxes, reporting, bookkeeping, and running your business in general. We'll make sure you don't get scared when you start.
To help your business grow, here are some simple tips that will help you get more positive feedback from your customers.
Documents required to start an Airbnb business in UAE (Dubai)
Cost of starting an Airbnb business in UAE (Dubai)
Tips for preparing and listing your Airbnb property for guests
Pay attention to these things before you start:
-
Design & comfort
To make your guests feel comfortable and enjoy their stay, provide clean, stylish, and comfortable décor; a quality bed; and good lighting. -
Amenities
Set up the Wi-Fi and air conditioning (if needed), and provide kitchen items and clean towels and toiletries. Extras like a coffee machine and a smart TV are helpful. -
Safety & cleanliness
Pay attention to fire safety, such as extinguishers and alarms, and ensure that the property is clean and well-maintained. -
Photos & description
Use professional-quality photos. Highlight what makes the property special, such as the view, location, or amenities. Be honest in your description. -
Guest experience
Your customers will appreciate the following amenities: easy check-in and check-out, clear instructions, local information point, and quick responses to messages. -
Pricing strategies
Adjust prices for peak season, offer discounts for long stays, and stay competitive with the market.
Taxation and fee structures
- Corporate tax: If your Airbnb business is structured as a company and your annual profits exceed AED 375,000, then you may be subject to a 9% Corporate Tax.
- 5% VAT may apply if you operate like a commercial service or business, if your operations exceed certain thresholds, or if you are registered as such.
- Tourism Dirham Fee: Fees collected from guests per night: AED 10 per night for a standard bedroom and AED 15 per night for a deluxe bedroom. This fee is applied for up to 30 consecutive nights. This must be shown separately.
- Permit / licensing fees: Annual registration, permit.
- Other fees: These could be municipality housing fees, service charges for the building, community fees, cleaning and maintenance fees, and insurance.
To get an accurate idea of all the taxes you'll need to pay and to stay on top of deadlines and penalties, it's best to consult with professionals. We've already helped hundreds of businesses get started in Dubai.
What to read next
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