Dubai holiday home running costs: Tourism Dirham, DET fees and service charges over a year

For an 800 sq ft 1-bedroom in Dubai Marina let for 201 nights a year, holiday home running costs in Dubai come to about AED 81,000 over the year, including over AED 27,000 of fixed costs owed even without a single booking. The Tourism Dirham, about AED 2,000 a year, is paid by the guest and only passes through your account.

What are the running costs of a Dubai holiday home over a year?

The calculation follows a non-resident owner. Assumptions: an 800 sq ft 1-bedroom in Dubai Marina, a service charge of AED 16 per sq ft, an average of AED 700 per booked night and 201 nights let (55% occupancy), for AED 140,700 of gross income. All bookings come through Airbnb. These are the central-scenario assumptions of our net calculation for a Marina 1-bedroom.

Out of AED 140,700 of gross income, about AED 58,800 to 59,300 remains before tax, mortgage and repairs. Variable costs follow revenue. Fixed costs stay due when occupancy drops.

Tourism Dirham for a holiday home: who pays it, and how much over a year

The Tourism Dirham is a tourism fee set by the Department of Economy and Tourism (DET). For a holiday home, it is AED 10 per occupied room per night in the Standard category and AED 15 in the Deluxe category. The category is the one you choose when you take out the permit. The guest pays it, and the operator collects it and remits it to DET.

• Standard 1-bedroom, 201 nights: 201 × 10 = AED 2,010 collected over the year.
• Deluxe 1-bedroom, 201 nights: 201 × 15 = AED 3,015.
• Standard 2-bedroom, 201 nights: 201 × 2 × 10 = AED 4,020, because the fee applies per room.

The Tourism Dirham does not reduce your income as long as it is added to the price the guest pays. It becomes a loss when it is collected badly: if the listed price includes it without showing it separately, it comes out of your rent. Ask for every stay to show the amount collected and the amount remitted.

Exemption announced in May 2026: on 21 May 2026, Dubai approved a second AED 1.5 billion support package. For holiday homes, it provides for exemption from permit and licence fees. The exemption from collecting the Tourism Dirham is announced for hotel rooms and restaurants; the release does not say whether it extends to holiday homes. The 33 measures run over 3 to 12 months, with each government entity setting its own timeline. The Dubai Media Office gives no end date per measure: check the status at each filing. What the package changes is analysed in the Dubai rental market in 2026.

DET fees and first-year costs

The DET holiday home permit costs AED 370 for a studio or 1-bedroom (AED 300 per bedroom, AED 50 for the classification certificate, AED 10 Knowledge fee and AED 10 Innovation fee). The fee is the same for a 3-month or a 12-month permit, and it is capped for larger homes. The first year adds one-off spending:

For a 1-bedroom, the first year therefore costs at least AED 1,890 in DET fees (1,520 + 370), plus AED 2,000 held by DEWA. DET also requires insurance from a Dubai-licensed insurer, valid for the full term of the permit.

Service charges, utilities and internet: the fixed costs of a Dubai holiday home

Fixed costs come to AED 26,838 a year before insurance, about AED 134 per night let in the 201-night scenario. They do not depend on occupancy.

• Service charge: the building's shared costs, billed per square foot by the owners' association and published on the Dubai Land Department index. In the Marina, Marina Park is at AED 13.80 per sq ft and Bay Central at AED 21.47. On 800 sq ft, the gap between those two towers reaches AED 6,136 a year.
• Electricity, water and cooling: AED 750 a month on an annual average. A holiday home is cooled between stays to welcome the next guest, and summer weighs more than winter.
• Internet and TV: AED 389 a month, an item guests take for granted.
• Insurance: AED 300 to 800 a year for about AED 100,000 of insured contents, according to Property Finder and CoverB. Get written confirmation that the policy covers nightly letting.

At AED 550 a night and 40% occupancy, gross income falls to AED 80,300. The same fixed costs then take 33% of gross, against 19% in the central scenario. On the DEWA bill, also check the housing fee line (the municipal housing charge) across your last 12 bills: it comes on top of consumption.

Holiday home or annual lease: what changes in the owner's costs

Under an annual lease, the tenant applies for electricity and water using their tenancy contract, and the 5% municipal fee on the annual rent is added to their DEWA bills. The service charge stays with the owner under both types of letting.

• Annual lease: your fixed costs are mostly the service charge, AED 12,800 in our assumption.
• Holiday home: you add utilities, internet, the permit and insurance, AED 14,338 to 14,838 more a year, plus platform fees and the management fee.

The comparison is therefore made on net income, after all of these lines. The 12-month detail is in our short-term versus annual lease comparison.

How to check each cost on your owner statement

An owner abroad sees neither the bills nor the stays. Each item can be checked against a specific document:

1. Service charge: compare the owners' association invoice with your tower's rate on the Dubai Land Department index.
2. DEWA: ask for the last 12 bills, summer included, in the account holder's name.
3. Tourism Dirham: multiply nights let by the number of rooms and by AED 10 or 15. The result should match the amount collected and remitted on the statement, outside any exemption period.
4. VAT: a non-resident is registered with the Federal Tax Authority from the first night. Ask for a copy of each return.
5. DET permit: note the expiry date and check the number shown on each listing.
6. Insurance: keep the certificate and check that it covers the full term of the permit.

The obligations behind each item are summarised on our Dubai compliance page.

What Flatlab does

Our teams are based in Dubai. We handle the Holiday Home permit (issuance and renewal), installation and certification of the SIRA lock, and Tourism Dirham registration and collection. The fee is 20% all inclusive: housekeeping, linen, maintenance and distribution included. Every transaction appears line by line in your owner console, open 24/7, and the mandate can be ended with 3 months' notice. Your estimate includes a personalised DET audit.

FAQ

How much is the Tourism Dirham for a Dubai holiday home?

AED 10 per occupied room per night in the Standard category, AED 15 in Deluxe. The guest pays it. The 21 May 2026 incentive package announces an exemption from collection for hotel rooms and restaurants, without saying whether it extends to holiday homes.

How much does a Dubai holiday home permit cost each year?

AED 370 per permit for a studio or 1-bedroom, plus AED 300 per additional bedroom, up to the cap. The AED 1,520 registration is paid once. The 21 May 2026 package announces an exemption from permit fees during the incentive period.

Does the owner pay service charges on a Dubai short-term rental?

Yes. The service charge stays with the owner, for short-term lets and annual leases alike. The amount depends on the tower: in the Marina, from AED 13.80 to over AED 23 per sq ft according to the Dubai Land Department index.

Is holiday home income taxed in Dubai?

5% VAT applies from the first night for a non-resident. The 9% corporate tax can apply to an individual whose letting is treated as a business activity, above AED 375,000 of taxable profit. Your country of tax residence may also tax this income.

This article is for information only. It does not replace professional legal or tax advice. Fees and exemptions change: confirm them with DET, DEWA and the Federal Tax Authority before you budget.