What Are the Guidelines for Short-Term Rentals and Holiday Homes in the UAE?

 

The short-term rental market is booming in the UAE, with the rules and regulations easier to understand and more relaxed than any other country. In recent years there has been outstanding growth in the business model of short-term rental homes because of platforms like VRBO and Airbnb, cities like Abu Dhabi have accepted platforms like Airbnb, which allow the owners and landlords to take full advantage of this boom. The Department of Culture and Tourism or DCT has partnered with Airbnb to make the accommodations safe and secure for tourists and travelers. For land and property owners who want to get involved in this trend, there are some guidelines and rules to go through, here we are going to discuss  

 

Guidelines for Short-Term Rentals and Holiday Homes in the UAE.

 

1. Licensing and Registration

To get your property registered as a holiday home the owner must get a license from the Department of Culture and Tourism (DCT). This is a legal process and is a sign that your property meets the recommended standard to be listed as a short-term rental or holiday home. Failure to get a license and failure to meet the registration rules can result in property being shut down. 

 

2. Documentation required for registration

When you are trying to list your home or apartment for short-term rentals or trying to get a license allowing you to get into the business you must submit these documents, which is the proof of whether you are eligible or not or if your property is suitable for short-term rentals or not. Here is the list of required things:

• 2 copies of Passport and Emirate ID's.
• A holiday home registration form filled with your details, that can be found on the DCT website.
• A recent utility bill registered in your name. 
• A copy of the property title deed and or if you are leasing a property a Tawtheeq tenancy contract.
• A blueprint or floor plan showing the layout of your property.
• Photos of your property including all the rooms and facilities.
• A declaration with your sign on it that declares that your property meets the requirements of DCT.
• Also the proof of Insurance that covers your property.

 

3. Post Licensing processes

Even after getting a license, there are some things you are meant to follow to make sure that your property stays compliant with the guidelines of the UAE's short-term rental regulations and rules. If you fail to follow these things it could result in fines or your property being shut down. Here are the rules:

• Monthly reporting 
• Paying Tourism fee
• Having a valid Insurance
• Maintaining Safety Standards

 

4. Taxes and Fees

Apart from the 6% tourism fees DCT demands, short-term rentals are subject to Value Added Tax (VAT). The standard Value Added Tax in UAE is 5% which applies to most goods and services with few exceptions. Short-term rental homes or holiday homes fall in that category because it is a taxable service and it is suggested to consult a professional to ensure that you are meeting the standards or not. This tax can be paid through all methods of transaction, such as cash, credit card, bank transfer, or cheques.  The details for paying the Taxes are mentioned below:

• Bank Name: Abu Dhabi Commercial Bank 
• Account Name: Department of Culture and Tourism 
• Account Number: 10179268020001 
• IBAN: AE220030010179268020 001 
• Swift Code: ADCBAEAA

 

Why these guidelines are important and must be followed?

The Guidelines for Short-Term Rentals and Holiday Homes in the UAE seem to be strict but they are designed and structured for tourists and travelers to have a safe and comfortable experience and also to make a high standard in the holiday home market.