DET licence and holiday-home tax in Dubai: what non-residents need to know

You're an owner in France, Belgium, Switzerland, the UK or elsewhere; you have (or will have) an apartment in Dubai you want to short-let. Three questions come up systematically: "do I need a licence?", "how do I pay tax on the UAE side?", "how do I report at home?". Here are the real answers, with official sources.

1 · The DET licence (Holiday Home Permit), mandatory

Since 2016, all short-term rental in Dubai is regulated by the Dubai Department of Economy and Tourism (DET, formerly DTCM). Without an active holiday-home licence, your unit cannot legally be let for less than 30 days. Airbnb, Booking, Vrbo and others must verify the licence is valid before publishing the listing.

Two regimes available

• Operator licence — your operator (e.g. Medini Homes) holds a master licence and places your unit under their regime. The unit appears under the operator in the DET system. This is standard for non-residents.
• Self-operator licence (Holiday Home Self) — you obtain your own licence. Possible but requires local administrative presence (Emirates ID, UAE bank account, in-person filings).

For 95 % of non-residents, the operator route is simpler, cheaper (economies of scale) and just as transparent — your revenue still flows in your name, the title remains yours at the DLD.

Indicative costs (2026)

2 · Tourist Dirham — how it works

DET imposes a per-room, per-night tourist tax that you collect from the guest and remit monthly. Amount depends on classification:

• Standard apartment: 10 AED / room / night
• Deluxe / Superior: 15 AED / room / night
• Luxury apartment / villa: 20 AED / room / night

For a 2-bed deluxe occupied 200 nights/year: 2 × 15 × 200 = 6,000 AED in collected & remitted tourist dirham. On average 3-5 % of gross revenue. Managed by your operator via the Dubai Tourism Dirham Reporting System.

3 · UAE side: rental income tax?

Short answer: no personal income tax in the UAE. No tax on rents, no capital gains tax, no real-estate wealth tax. One of the cornerstones of UAE's fiscal attractiveness.

Three nuances to know:

1. Corporate tax (introduced 2023) — applies to companies above 375,000 AED of profit. If you hold the unit in your own name (non-resident individual), you're not concerned. If you hold via a UAE company exceeding the threshold, yes — but uncommon for a single-asset owner.
2. VAT 5 % — short-term residential rental is VAT-exempt. VAT does apply to services (cleaning, concierge, laundry billed by your operator).
3. DLD annual fee — you pay 4 % of equivalent annual rent in DLD service fees on freehold zone units (typically embedded in the building service charge). Not income tax, more of a cadastral fee.

4 · Reporting at home — country by country

The tax treaty between the UAE and most European countries establishes that immovable property income is taxable in the State where the asset sits — therefore the UAE. But your home country retains a right to tax for fiscal residents.

If you're a French fiscal resident

Declare your Dubai rental income under "foreign-source property income" on form 2047. Per the convention, the income is in principle exempt in France but counted in the effective rate applicable to your other French income. In practice: your Dubai income isn't re-taxed but can push your French income into a higher marginal bracket.

Classic case: 100,000 € French income + 50,000 € Dubai equivalent. France calculates tax as if you had 150,000 € (higher marginal bracket), then applies that average rate to your 100,000 € French only. No double taxation but bracket effect.

If you're a UAE fiscal resident (Emirates ID + residence visa + 183+ days)

You no longer report in France provided you've effectively departed French fiscal residency. Dubai income is taxed neither in UAE nor France.

If you're Belgian / Swiss / British

Belgium: 1996 UAE-BE convention, similar mechanism (exemption with progressivity). Switzerland: 2011 convention, idem. UK: no tax treaty with UAE on property — UK residents must declare and pay UK income tax on Dubai rental net (with some loss-relief and depreciation rules).

5 · CRS / FATCA / wealth declarations

The UAE participates in the Common Reporting Standard (CRS) since 2018. UAE bank accounts of foreign fiscal residents are automatically reported to the home tax authority. In practice: your UAE account fed by your Dubai rents is known to your home tax authority. Non-disclosure is no longer viable.

You typically also have to declare:

• Foreign bank accounts (annual filing, often by spring deadline).
• Foreign life insurance / wrappers.
• Real estate held abroad on wealth tax filings if applicable.

6 · Summary — the non-resident checklist

1. Purchase in personal name (simplest) or via UAE company (complex, justified above 3-4 units).
2. Set up DET licence via your operator (3-7 days).
3. Open UAE bank account for net rent receipts (easier via operator referral or 10-year investor visa).
4. Declare in your home country (3916 + 2047 in France, equivalents elsewhere).
5. Renew DET licence yearly (60-day reminder from operator).