Airbnb & Short-Term Rental Rules in Abu Dhabi

Abu Dhabi’s skyline isn’t the only thing on the rise — its short-term rental market is booming. With regulations more relaxed than in many other global cities, Abu Dhabi has embraced platforms like Airbnb, allowing hosts and property managers to take full advantage of this growing trend. 

Since 2022, the Department of Culture and Tourism (DCT) Abu Dhabi has partnered with Airbnb, offering hosts and tourists alike a safe and secure way to access alternative accommodations.

This thriving market presents lucrative opportunities, but hosts must still follow key guidelines to ensure compliance. Whether you're listing a luxury villa or a modern apartment, this article will help you navigate the rules and make the most of Abu Dhabi’s booming short-term rental scene.

Starting a Short-Term Rental Business in Abu Dhabi

To legally rent out your property as a holiday home in Abu Dhabi, you’ll need to get a license from the Department of Culture and Tourism (DCT). The licensing process is pretty straightforward: 

• Register your property with DCT.

• Make sure that the property meets quality, safety and amenity standards set by DCT.

• Pay the applicable licensing fees.

Getting Started: Licensing and Registration

Before renting out your property as a holiday home in Abu Dhabi, you must obtain a license from the Department of Culture and Tourism (DCT). This license is a legal requirement and ensures that your property meets the necessary standards to operate as a short-term rental. Here’s how the process works:

1. Registering your property: The first step is to register your property with the DCT. This involves submitting a set of documents, including your property title deed, passport copy and a recent utility bill. This ensures that the property is legally owned and meets the basic criteria for holiday home use.

2. Meeting DCT standards: Your property must meet the DCT’s standards for quality, safety, and amenities. These guidelines are designed to ensure that guests have a comfortable and safe stay. For example, properties need to be equipped with smoke detectors, fire extinguishers and other safety equipment.

3. Paying the licensing fee: Once your property is approved, you’ll need to pay a licensing fee, which varies depending on the size and type of the property. The license is valid for one year and must be renewed annually. Make sure you plan ahead and submit your renewal application at least 30 days before your license expires to avoid any disruptions in your ability to operate.

Licensing Rules for Properties

One key point to remember is that only entire properties can be rented out as holiday homes in Abu Dhabi. The city does not allow partial home rentals, such as renting a single room while the owner remains in the property. If you want to operate a holiday home, it must be the entire unit, whether it's an apartment, villa or townhouse.

Additionally, you can register and license up to eight properties under your name. If you’re managing more than eight properties, you’ll need to establish a company and obtain a commercial license, which involves a different set of requirements and costs.

Documents Required for Registration

When you apply for a holiday home license, you’ll need to submit several important documents to the DCT. These documents verify your eligibility and ensure that the property is suitable for short-term rentals. Here’s what you’ll need:

• A completed holiday home registration form, available on the DCT’s website.

• 2 copies of your passport or Emirates ID.

• A copy of the property title deed or the Tawtheeq tenancy contract if you’re leasing the property.

• A recent utility bill in your name.

• A floor plan showing the layout of the property.

• Photos of the property, including all rooms and amenities.

• A signed declaration that the property meets the DCT’s safety, quality, and amenity standards.

• Proof of insurance coverage.

If you’re operating as a company, you’ll need to provide additional documents, such as a valid trade license and a list of all properties managed by the company.

Ongoing Responsibilities for Hosts

Once you’ve obtained your license, there are a few ongoing responsibilities to ensure that your property stays compliant with Abu Dhabi’s short-term rental regulations. Failing to follow these rules could result in fines or, in extreme cases, your property being shut down. Here’s what you’ll need to do:

• Monthly reporting: You are required to submit monthly occupancy and revenue reports to the DCT for each of your licensed properties. This data helps the DCT track the performance of the short-term rental market and ensure compliance across the board.

• Tourism fee: Abu Dhabi imposes a 6% tourism fee on short-term rentals. As a host, it’s your responsibility to collect this fee from guests and remit it to the DCT every month. Make sure this fee is clearly communicated to your guests when they book your property so there are no surprises.

• Insurance: You must have valid insurance coverage that includes property damage and liability. This protects you in case anything goes wrong during a guest’s stay and it’s also a requirement for maintaining your holiday home license.

• Maintaining safety standards: Your property must consistently meet DCT safety standards, including fire safety and general property maintenance. Regular inspections may be required to ensure compliance.

Failing to follow these regulations can result in fines of up to AED 100,000 and the potential closure of your property. The DCT has stepped up its enforcement efforts in recent years, making it more important than ever to stay compliant.

Navigating Taxes and Fees

Taxes

In addition to the 6% tourism fee, short-term rental hosts may also be subject to Value Added Tax (VAT) and other municipal fees. The UAE implemented a 5% VAT on most goods and services in 2018, and while long-term residential leases are generally exempt, short-term rentals are considered a taxable service. Consult with a tax professional to ensure you’re fulfilling all VAT obligations.

The tourism fee should be paid by check, credit card, cash deposit or bank transfer to:

Bank Name: Abu Dhabi Commercial Bank 

Account Name: Department of Culture and Tourism 

Account Number: 10179268020001 

IBAN: AE220030010179268020 001 

Swift Code: ADCBAEAA

Some short-term rental platforms, such as Airbnb, may automatically collect and remit certain fees on your behalf. However, it’s still your responsibility to ensure that all tax obligations are met, so make sure you stay on top of reporting requirements.

Fees

Fees table for issuing licenses for short-term rentals and other relevant services

Why Complying with Regulations is Important

Abu Dhabi’s short-term rental regulations may seem strict, but they’re designed to ensure a high-quality experience for visitors and maintain standards in the holiday home market. By making sure your property is fully licensed and compliant, you’ll avoid potential penalties and position yourself for long-term success in a growing industry.

Operating without the proper licenses or failing to meet the DCT’s standards could result in steep fines, with penalties reaching up to AED 100,000. In some cases, properties can be shut down entirely for non-compliance.

But for those who follow the rules, the rewards can be substantial. Licensed properties have a competitive edge, as guests are more likely to book properties that meet safety and quality standards. Additionally, licensed hosts can confidently market their properties on popular platforms like Airbnb, knowing they’re operating within the law.

Setting Up an Airbnb in Abu Dhabi in 10 Steps

Seizing the Opportunity in Abu Dhabi's Growing Short-Term Rental Market

Abu Dhabi’s short-term rental market is expanding quickly, offering significant potential for property owners who follow local regulations. By securing the proper licenses, adhering to safety standards and staying on top of taxes and reporting, you can unlock this lucrative opportunity while avoiding fines or legal issues.

Though the process may seem overwhelming initially, compliance will help your property stand out in a crowded marketplace. As enforcement continues to tighten, licensed properties will have a distinct advantage. If you’re looking to enter the short-term rental business, following the rules will set you up for success.

FAQ

How can I contact the Department of Culture and Tourism in Abu Dhabi?

You can reach the Department of Culture and Tourism (DCT) in Abu Dhabi by calling +971-2-444-0444, or you can use their toll-free number at +971-800-555.

What is the cost of renewing a short-term rental license in Abu Dhabi?

Renewing your short-term rental license with the Department of Culture and Tourism (DCT) in Abu Dhabi costs AED 900.

Can tenants rent out their units for short-term stays?

No, tenants cannot rent out their units for short-term stays unless they have permission from the property owner.