Holiday Home Licence in Abu Dhabi: How to Rent Short-Term Legally (2026)

Do you need a licence to rent out a holiday home in Abu Dhabi?

Yes. DCT Abu Dhabi has licensed holiday homes since 2020, and under the rules updated in 2026 a holiday home cannot be listed on any website or digital platform without a valid DCT licence. The licence number must be displayed on the listing page, so guests can check it before booking (The National and Gulf News, September 2026).

Owners, joint owners, companies, tenants and people authorised by the owner can apply, but only for whole units in eligible developments, with no more than three guests per room.

The rules also bind people who sublet. A tenancy contract alone does not permit holiday home activity (Gulf News), and under Abu Dhabi’s tenancy law subletting without the landlord’s consent is a ground for eviction. Tenants need the owner’s written authorisation as well as the DCT licence.

Which properties qualify as a holiday home?

The property must be legally eligible for leasing and sit in an approved development project, a commercial hub, agricultural land where specifically permitted, or a licensed residential or investment plot (The National, 17 September 2026). In practice, most licensed holiday homes are apartments, townhouses and villas in the freehold investment zones, such as Yas Island, Saadiyat Island and Al Raha Beach.

Whole units only. You must let the entire villa, apartment or townhouse. Renting individual rooms or subdividing a unit is not allowed.

Occupancy. No more than three people per room, and living rooms, lounges and hallways cannot be turned into bedrooms.

ADGM. On Al Reem Island and Al Maryah Island, which fall within Abu Dhabi Global Market, operators must also provide a valid ADGM licence.

Building rules. Check the community’s rules and the owners’ association before you apply. Some buildings restrict short stays or require guest registration at the gate.

How do you apply for a DCT holiday home licence?

Applications are made online through DCT’s Holiday Homes e-service. Bayut (October 2026) describes these steps:

1. Create an account on the DCT Holiday Homes in Abu Dhabi e-service and say whether you are an owner or an operator.

2. Choose the option to apply for a holiday home permit and enter the unit’s Tawtheeq number, which pulls in the property details.

3. Check the details and upload the insurance certificate for the unit and a copy of the Tawtheeq record.

4. Accept the terms and submit. DCT reviews the application.

5. Once approved, pay the fees. The unit then moves to inspection (The National).

6. Download the receipt and the permit from your dashboard, and add the licence number to every listing.

Documents. For an owner: passport or Emirates ID, a valid insurance certificate for the unit and the Tawtheeq record, plus the title deed or lease if DCT asks. For an operator managing someone else’s unit: the operator’s commercial licence, ID and a good-conduct certificate (Bayut). The National also notes that a Department of Economic Development licence may be needed.

How much does a holiday home licence cost in Abu Dhabi?

The National reports that fees now vary with the number of units, the property type and whether the operator is an individual or a company, so confirm the amount on the DCT system before you budget.

The 6% tourism fee. DCT Circular No. 3 of 2025, issued on 16 April 2025, applies a tourism fee of 6% of the total invoice collected from the guest to every unit operated by a holiday home owner or operator. Revenues are declared to DCT monthly, within the first five working days of the following month (DCT circular). Build the fee into your nightly price rather than absorbing it.

Do holiday homes earn more than a long-term let in Abu Dhabi?

They can earn more in a good year, with more cost and more work. Demand is growing fast: Abu Dhabi had 4,771 eligible holiday home units at the end of 2025, up 77% on the year, with just over 335,000 guests (also up 77%) and average daily revenue up 28% to AED 1,887 (Gulf News, September 2026). Operator commission is the biggest running cost; see our property management fees guide.

Against that, a short-stay unit has to be furnished and insured, cleaned between guests and managed, and platforms and operators take commission. Occupancy also moves with the season and the events calendar. We have not found a published Abu Dhabi benchmark for these costs, so model them for the specific unit.

The 0% rent cap applies to tenancy contracts registered on Tawtheeq. We have not seen ADREC guidance applying it to holiday home nightly rates, which is one reason some owners are looking again at short stays. Compare both options on net income: our rental yields guide and landlord guide show how.

Which areas suit holiday homes in Abu Dhabi?

Short-stay demand follows leisure and events. Yas Island has the theme parks, Yas Marina Circuit and the arena; Saadiyat Island has the beaches and the museum district; Al Raha Beach sits between the airport and Yas. Our guide to the best areas to buy in Abu Dhabi compares prices and yields, and Saadiyat vs Yas vs Al Reem looks at the three islands side by side.

*General information, not legal or tax advice. DCT updates its rules and fees, so confirm the current requirements on the DCT system before you list.*