Short-term rental license: Dubai, Oman and Spain

Purchasing an apartment for short-term rental abroad should not begin with the question of how much one can earn per night. The first question is different: can a specific property, in a specific building, and in a specific jurisdiction be legally rented out to tourists? Only after answering this is it worth calculating ROI, yield, operator commission, and the potential exit scenario.

Dubai, Oman, and Spain illustrate three distinct models of rental control. In Dubai, the Department of Economy and Tourism (DET), the Holiday Homes system, and the permit assigned to the specific unit are of central importance. In Andalusia, an investor must combine the VUT declaration, urban planning requirements, the municipality's stance, and the consent or restrictions of the homeowners' association. In Oman, the starting point is different: one must check whether the property is located within an Integrated Tourism Complex (ITC) structure, what management model is imposed by the master developer, and whether the activity requires a separate tourism-side licensing path.

In practice, this means that an apartment with a great view and a high standard of finish can be a poor investment asset if it lacks the right to legal tourist rental. The risk concerns not only administrative fines, but also listing blocks, conflicts with the building manager, lack of access for guests, higher community fees, the impossibility of transferring the license to the next owner, and a drop in liquidity upon resale.

Therefore, verification should proceed in the reverse order of a typical sales presentation. First: the legal status of the building, land use zoning, community regulations, operator permissions, and licensing documents. Only later: the standard of the premises, photography, rental valuation, and rate optimization. This way of working is consistent with PlanoGroup's investment approach, which combines property selection with due diligence, cost analysis, and operational risk assessment. The starting point can be treated as a broader market review on the PlanoGroup website and as a continuation of analytical topics published on the PlanoGroup blog.

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Can every apartment be rented out short-term?

Classification of rental models and their legal consequences

Not every apartment bought abroad is suitable for legal short-term rental. In many countries, property ownership and the right to its commercial use are two separate orders. An investor may hold a Title Deed, escritura, or another document confirming ownership, but this does not automatically mean the right to advertise the property on booking platforms, handle rotating guests, and collect fees as for tourist accommodation.

The first division concerns the length and character of the stay. Long-term rental, or residential lease, typically serves to satisfy the tenant's housing needs. The contract is longer, turnover is lower, and the building functions as a residential community. Short-term rental, i.e., holiday home, tourist rental, or vacation rental, is an accommodation service. The guest arrives for a short stay, the apartment is furnished and ready for immediate use, and the owner or operator handles reservations, check-ins, cleaning, reporting, and often the collection of local tourist taxes.

The second division concerns the operating model. In private rental, the owner manages the property themselves or delegates some tasks to a management company. In the serviced apartment model, the apartment operates within a service structure where the operator provides a reception desk, housekeeping, a standard of stay, and often central billing. In the condohotel or hotel apartment model, the owner may have a share in the revenues, but the rental rules, owner-use periods, and division of results are specified in the agreement with the operator. These are not cosmetic differences. The model determines the type of license, liability for guests, taxation, insurance, utility costs, and the possibility of exiting the investment.

The third element is the designation of the land and building. If planning documents, the occupancy permit, building regulations, or master community rules provide exclusively for a residential function, the owner may not obtain permission for tourist rental despite high demand. In Andalusia, one must check compliance with urban planning requirements and the stance of the local municipality. In Dubai, what matters is whether the unit is located in a category and area accepted by DET. In Oman, the investor should confirm the ITC status, the provisions of the sales contract, the project regulations, and whether the operator has the right to conduct accommodation activities.

This is why the first document to check is not the investment brochure. It is the complete set of legal documents: the title deed, the zoning plan or its local equivalent, building regulations, community resolutions, the agreement with the operator, rules for using common areas, and confirmation of the licensing path. The brochure may show demand potential. The documents show whether that demand can be legally serviced.

In financial calculations, the difference is significant. An apartment in a hotel model may involve lower workloads for the owner, but the contract may impose a rigid revenue split, restrictions on using the property, and an obligation to participate in the renovation fund. A holiday home gives greater control over rates and the calendar, but requires its own compliance with the law, ongoing reporting, and full guest service. Medium-term rentals can be an intermediate solution, especially for expats, consultants, and family relocations, but they also require checking whether they fall under local definitions of tourist rental.

The conclusion for the investor is simple: profitability is not a feature of the apartment. Profitability is the result of legal compliance, operating costs, demand, the operator agreement, and the possibility of resale. If any of these elements is uncertain, the ROI estimation should be suspended until verified.

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How to check the license and requirements in Dubai?

DET procedures and the Holiday Home Permit system

Dubai has a relatively orderly model for regulating short-term rentals, but this does not mean every property can be immediately listed on a reservation platform. Holiday home rentals are regulated by the Department of Economy and Tourism. The official basis includes, among others, DET Administrative Resolution No. 1 of 2020, which defines a holiday home, license, permit, the obligations of the licensee, and the conditions for issuing a permit for a specific unit.

The most important distinction concerns the business license and the permit for the unit. The license applies to the entity conducting the activity. The permit applies to a specific furnished unit that DET approves as a holiday home after checking the requirements. An owner who wants to operate independently should verify the registration path in the DET Holiday Homes system. An owner using an operator, on the other hand, should check whether the operator has the proper authorizations, whether the management agreement allows them to register the unit, and who is responsible for obligations toward DET.

The first step of due diligence is the Title Deed or the appropriate document for a given investment phase. One must compare the owner's details, unit number, area, building status, and any encumbrances. For off-plan properties, sales documents must be separated from those needed after handover. An SPA alone is not enough to assess rentals if the unit does not yet have its final status, and building regulations may be created or changed only before handover.

The second step is verifying whether a given unit falls into a category accepted for a holiday home. The DET Resolution indicates that a permit depends, among other things, on location in an area where the activity is authorized, the category of the unit, and compliance with technical and equipment requirements. The investor should ask for confirmation at the building level, not just the district. Dubai Marina, Downtown Dubai, and Business Bay are recognizable locations, but restrictions may arise from the regulations of a specific tower, the developer's rules, or the owners' association.

The third step is an NOC (No Objection Certificate) or another document confirming the lack of objection from the manager, developer, owners' association, or the owner if the unit is being sublet. In practice, this is one of the most operational documents. Without it, the owner may face problems not only with formal registration, but also with guest access to the building, parking, elevator, reception, swimming pool, or gym. The investor should obtain a written response as to whether short-term guest stays are permitted, what the entrance registration rules are, whether guest number limits apply, and whether building management charges additional fees.

The fourth step covers obligations after obtaining the permit. DET requires, among other things, compliance with standards, keeping guest records, displaying the permit number in promotional materials, and operating in accordance with the approved classification. This means short-term renting does not end with obtaining permission. There must be a process: guest registration, complaint handling, insurance, safety procedures, regular permit renewal, and monitoring listing compliance.

For an investor from Poland, the safest assumption is that the operator should present not only a revenue forecast, but also the licensing path. One should ask who submits the application, whether the permit will be assigned to a specific unit, what the renewal process looks like, what happens when the unit is sold, what documents must be handed over to the new owner, and whether the listing can operate without interruption after the transaction. Without these answers, the rental model is merely a hypothesis.

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How does the VUT declaration work in Andalusia and on the Costa del Sol?

Regional law, the municipality, and the homeowners' association

In Spain, there is no single simple model for the entire country. Tourist rentals are regulated at the regional level, and additionally, municipalities, horizontal property law, and community documents matter. For an investor analyzing the Costa del Sol, Andalusia is the most important, where the vivienda de uso turístico (VUT) category operates. In older market discussions, you may encounter the abbreviation VFT, but current regional regulations more frequently use the term VUT.

The Junta de Andalucia - FAQ VUT explains that commencing activity requires submitting a responsible declaration electronically and that compliance with municipal urban planning regulations must be checked before filing. BOJA Decreto 31/2024 amended Andalusian regulations concerning tourist apartments and explicitly indicates that an apartment cannot be a VUT if, among other things, the title of establishment of the community or the statutes contain an express prohibition on tourist accommodation activities.

This shifts the burden of due diligence. The investor should not only ask whether the previous owner had a registration number. They should check whether the unit still meets the requirements, whether the municipality has introduced restrictions, whether there is a ban in the Estatutos de la Comunidad, whether the community has passed resolutions limiting rentals, and whether the activity was actually conducted in accordance with the law. It is worth obtaining an up-to-date nota simple from the Registro de la Propiedad, the community statutes, meeting minutes, and confirmation from the administrator.

Since 2025, the significance of the homeowners' association has grown even greater. BOE - Ley de Propiedad Horizontal contains Article 17.12, which allows communities to restrict or condition the use of premises for tourist rentals by a majority of 3/5 of owners and quotas, and to establish special fees or increased common costs for premises conducting such activities up to a specified limit. In practice, the investor must know whether the community is neutral, favorable, or already in conflict with owners renting out to tourists.

Also significant is the change following the entry into force of new rules starting April 3, 2025. BOE Resolution January 29, 2026 shows the practical importance of the requirement for express community consent for new cases where the activity was not carried out before that date or did not meet transitional conditions. For the buyer, this means the necessity of verifying the property's history: when the activity was started, whether a number existed, whether listings were active, whether the entry complied with the municipality, and whether the community gave the consent required under the given factual circumstances.

The Licencia de Primera Ocupación, known as LFO, also requires caution. One should not automatically write that the lack of an LFO always and in every case blocks tourist rentals, because the practice depends on the municipality, the type of property, and substitute documents. For the investor, however, this is a strong red flag. Without confirmation of first occupancy or an equivalent document, it is harder to prove urban planning compliance and the legal use of the premises. Therefore, a lawyer should check the LFO, any certificado de antigüedad, urban status, IBI arrears, and community fees before signing a reservation agreement.

A separate obligation is guest registration. The Spanish model requires reporting traveler data to appropriate security systems, and regulations regarding registration and documentation are independent of the VUT number itself. The operator should show how they handle check-ins, guest documents, personal data protection, and communication with the administration. An owner living outside Spain should be sure that the process also works on weekends, in high season, and during delayed arrivals.

Conclusion: in Andalusia, a tourist rental license is not a single document. It is a set of conditions: the VUT declaration, urban status, property documents, the absence of a community ban, potential owner consent, guest registration, and an operator who understands local requirements. For apartments on the Costa del Sol, the difference between a property with a full compliance path and one sold under the slogan "for Booking" can determine the entire investment value.

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How to check rental rules in Oman?

ITC, operator, and tourist licenses

Oman requires a different way of thinking than Dubai and Spain. For a foreign investor, the basis is establishing whether the property is located within a structure where a foreigner can legally acquire ownership rights or rights similar to freehold. Historically, the Integrated Tourism Complexes (ITC) system, captured among others in Royal Decree 12/2006, was of central importance, and newer regulations concerning special zones and free zones show further streamlining of investments and sales of real estate units in designated areas.

In practice, an ITC is not just a marketing label. It is a project regime that defines who can buy, what rights the owner acquires, what restrictions result from the master community, how the management of common parts works, and whether the project provides for short-term rental, medium-term rental, a serviced apartment model, or a hotel model. The investor should demand a document confirming the project's status, a draft sales contract, community regulations, a Service Charge table, rules for the owner's use of the premises, and the terms of entrusting the rental to an operator.

Oman should not be described as a market where every apartment in an ITC can automatically be rented to tourists without further analysis. A document-based approach is safer: confirm the ITC status, check the contract provisions, and determine whether a given form of accommodation requires a tourist license, classification, or operator approval. The Ministry of Heritage and Tourism publishes services regarding the licensing of hotel and accommodation facilities, which shows that tourist activity has its own administrative regime. If a unit is to operate as part of an accommodation product, one cannot limit oneself to analyzing ownership law.

The master developer is particularly important. In resort projects, the developer or manager often controls the rental standard, the list of approved operators, advertising rules, guest access to the beach, swimming pool, parking, golf courses, restaurants, and reception. They may also require the use of an authorized management company, a specific equipment standard, or notification of owner-stay periods. Such rules must be known before purchase, as they affect Net Operating Income (NOI).

Oman Vision 2040 creates an important background for the investor, but it is not an independent argument for purchasing a specific unit. The official Oman Vision 2040 portal describes this vision as a national framework for economic and social planning for 2021–2040. Meanwhile, the MHT tourism expansion note points to tourism as a pillar of diversification and refers to the goal of attracting 12 million visitors by 2040. This helps understand the direction of state policy, but does not replace the analysis of micro-location, the operator, and investment documents.

In Muscat, the investor should check access to the airport, business districts, international schools, services, everyday infrastructure, and management standards. In Salalah, seasonality, length of stays, operator quality, and the rhythm of demand during tourist and winter periods may be more important. The same rental model does not have to work in both locations. In the case of projects by a marina, beach, or golf course, one must additionally examine whether short-term guests have full access to infrastructure or only owners and residents.

Step by step, it looks like this: first the ITC status or another permissible structure, then ownership rights and the register, next the master community regulations, further the operator agreement, Service Charge and utility costs, tourism-side licensing requirements, tax rules, and the procedure for selling a property with an active rental agreement. Only after this can one discuss seasonality, ADR, occupancy rate, and yield.

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What rules can the homeowners' association and operator impose?

Operational restrictions that change the investment result

The homeowners' association, owner association, master community, and rental operator can have a greater impact on the investment result than the purchase price itself. Owners often assume that after acquiring a property, they will freely decide how to use the real estate. In markets with developed residential infrastructure, this freedom is limited by building regulations, safety rules, tourism regulations, and the interests of other owners.

In Spain, the community can restrict or condition tourist rentals based on Article 17.12 of the Ley de Propiedad Horizontal. It can also establish additional fees or increased common costs for premises conducting tourist activities, within the limits provided by regulations. This means that even legal activity may have a higher fixed cost than a classic residential rental. The investor should ask for the community budget, cuota de comunidad rates, resolutions from recent years, a renovation plan, and information on whether the community is involved in disputes concerning tourism.

In Dubai, the risk is more operational. The building may require an NOC, define guest registration rules, reception access hours, magnetic card limits, service elevator usage rules, parking rules, and common amenity usage rules. If building management considers the property residential-only, the operator may have trouble with guest entry despite high demand in a given district. Therefore, due diligence should include not only DET, but also the building manager and the developer.

In Oman, a similar role is played by the master community. ITC projects are often multifunctional projects: a residential part, a hotel part, a marina, a beach, golf, retail, and services. Such a model requires control over stay quality and safety. The master developer may restrict independent rentals, require an approved operator, or impose equipment standards. These rules may be rational from the project's point of view, but for the investor, they represent a cost and a limitation of flexibility.

The rental operator is the second risk filter. A good operator agreement should specify who holds the license, who submits applications, who collects and remits tourist taxes, who is responsible for damages, who communicates with guests, how cleaning and linen service costs are settled, what the commission is, when the owner receives reports, and how the agreement can be terminated. If the operator presents only a revenue forecast without showing a compliance process, the document is incomplete.

Minor restrictions must also be examined, as they add up to the final result. Noise sensors, smart locks, key safes, extra cleaning, deposits, air conditioning maintenance, textile replacement, photography, listing management, booking channels, and complaint handling are real cost items. Some are one-time CAPEX, others ongoing OPEX. If they do not appear in the developer's estimation, the investor should add them independently.

The practical test is simple: ask the operator for a sample monthly owner report, a template agreement, a list of compliance obligations, and a price list for additional services. Then compare them with the building regulations. If the operator promises a result that cannot be linked to a specific license, a specific address, and a specific cost price list, such a model must be treated as sales material, not investment analysis.

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How to calculate the real cost of legal rental?

Comparison table and net profitability analysis

Gross ROI in short-term rentals is often overly optimistic because it shows revenue before compliance costs. For the investor, NOI (Net Operating Income) is more important—the result after deducting operating costs, taxes, commissions, Service Charges, insurance, equipment maintenance, vacancies, and license renewal costs. Only from NOI can net yield be derived and markets compared.

The first group of costs consists of entry costs. These include legal, registration, notary, tax, translation, advisory, and potential administrative fees related to the rental. In Spain, purchase costs must be distinguished from rental income tax. Agencia Tributaria - IRNR indicates that non-resident income from tourist apartment rentals is declared on Form 210, and rates depend on the taxpayer's status, including EU/EEA residency or residency outside that area. Therefore, a single rate should not be applied to every investor without checking their tax residency.

The second group consists of compliance costs. In Dubai, these include the permit, classification, insurance, DET obligations, guest registration, and ongoing renewals. In Andalusia, they include the VUT declaration, urban planning documents, tax handling, potential community requirements, and guest reporting. In Oman, they include ITC verification, the operator agreement, project fees, potential tourism licensing requirements, and the standard demanded by the master community.

The third group consists of operator costs. Sales plans often feature a commission expressed as a percentage of revenue, but the investor should ask what exactly it includes. Does the operator pay for listing, pricing, photos, guest messaging, cleaning, emergency maintenance, and tax settlements, or is each of these services billed separately? Is the commission calculated from gross revenue, after platform commission, or after variable costs? This difference can significantly alter the net yield.

The fourth group is CAPEX. Short-term rentals wear down a property faster than traditional residential renting. You need to plan for textile replacement, painting, air conditioning servicing, minor repairs, replenishment of equipment, lock control, and periodic upgrading of standards. In a serviced apartment or condo-hotel model, some of these costs may be built into the operator's fee, but then it must be checked whether the owner has any influence on the schedule and cost of renovations.

The fifth group is the exit cost. An apartment with an active, transferable rental track may be easier to sell to an investor than a property whose status is uncertain. Conversely, an apartment advertised as an investment, but without a license, without community approval, or with a dispute in the building, may require a price reduction. Therefore, the exit strategy analysis should include the question: will the next buyer be able to continue renting, or will they start the procedure from scratch?

Market tools such as AirDNA, operator reports, and data from booking platforms can be used to compare demand, but they should not replace legal documents. Occupancy and ADR data show market potential. The license, regulations, and taxes show how much of that potential can be realistically retained.

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Red Flags: When to Walk Away from a Purchase?

Audit Before Signing the Agreement

The first red flag is a residential property advertised as ready for tourist rental without a license number, registration, permit, or a clear path to obtaining one. The seller may show the results of similar apartments in the same district, but for the investor, the specific address matters. If the documents do not confirm the right to rent, the revenue forecast should not be included in the valuation.

The second red flag is the lack of an LFO or an unclear urban planning status in Spain. If a lawyer cannot confirm the property's compliance with its intended use, the investor should pause the decision. In Andalusia, an additional risk is the lack of community documents. The Estatutos de la Comunidad, meeting minutes, and the administrator's certificate may show that the building is in a dispute over tourism or that a ban is in place that the sales agent did not mention.

The third red flag is the lack of a response from building management in Dubai. If management does not confirm in writing the rules for guest entry, access cards, NOC, and holiday home approval, the investor should not assume that a DET permit will solve all problems. The permit is valid, but daily operations take place in the building. The guest must enter, park, collect the key, and use the infrastructure in accordance with the regulations.

The fourth red flag is a project in Oman described as an ITC without a document confirming its status and without rental rules. An ITC may give a foreigner access to purchase real estate, but the investor still needs to know what rental model is permitted, who manages the guests, and what fees apply. The lack of master community regulations at the decision stage means a lack of complete information about costs.

The fifth red flag is an operator who presents exclusively a percentage result. If the forecast does not separate ADR, occupancy, platform commissions, operator commissions, Service Charges, taxes, utilities, cleaning, insurance, CAPEX, and vacancies, it is not an analysis. It is a sales scenario. The investor should ask for a conservative, baseline, and aggressive variant, and each of them should stem from assumptions that can be modified and verified.

The sixth red flag is time pressure. Messages like "last property available for rent", "everyone is buying for Airbnb", or "the result is guaranteed" should prompt a slower analysis, not a faster decision. In foreign real estate, the cost of a mistake is high because after purchase, there are translations, powers of attorney, a foreign lawyer, local taxes, and the necessity of handling the matter remotely.

The seventh red flag is the lack of an exit strategy. Before signing the agreement, you need to know whether the license transfers to the buyer or requires re-registration, whether the operator can continue the contract, whether the community can block the new activity, and what documents the future buyer will want to see. Without this answer, the investor is buying not only an apartment but also an unresolved problem upon resale.

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Investment and Legal Consultation with PlanoGroup

When purchasing an apartment for short-term rental, the most important decision is made before choosing the view, floor, and finishing package. You must first confirm whether the planned rental model is legal and operationally feasible. Only later can you assess whether the purchase price, payment schedule, Service Charge, taxes, operator, and exit strategy form a cohesive investment model.

PlanoGroup can support the investor in organizing this analysis: from market selection, through questions to the developer and operator, to the coordination of due diligence with local lawyers. Of particular importance is the comparison of scenarios: Dubai as a market with a formal DET system, Andalusia as a market heavily dependent on the municipality and community, and Oman as a market of ITC projects and operators operating within a master community.

A conversation with an advisor should end with a list of documents, not just the selection of a property. For a premium investor, the real value of advisory services lies in filtering out assets that cannot be safely rented out before capital is tied up in a contract. This approach reduces the risk of buying an apartment that looks good in a presentation but does not function as a net income-generating asset.

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FAQ

Does operator consent replace a rental license?

No. Operator consent or a management agreement does not replace an official license, permit, registration, or other required administrative basis. The operator may conduct the process on behalf of the owner, but the investor should check whether the operator has the proper authorizations, whether the property meets the requirements, and whether the document will be issued for the specific unit. The contract must specify who is responsible for license renewal, guest reporting, tourist taxes, and penalties for non-compliance.

Does a tourist license transfer to the new owner?

It depends on the country, region, and type of document. In some systems, the license or number may be tied to the property, but a change of ownership may require data updates, re-registration, or confirmation by the operator. In Andalusia, you need to check the current VUT rules, community consent, and the municipality. In Dubai, you need to ask about the procedure for a DET permit after a sale. In Oman, the provisions of the agreement with the operator and the master community must be examined.

What are the penalties for renting without the required registration?

The risk includes administrative penalties, suspension of operations, removal of listings, disputes with the building or community, loss of guest access to common areas, neighbor claims, and difficulties upon resale. In Dubai, the DET Resolution provides for the possibility of suspending or revoking a permit in specific cases of violations. In Andalusia, the lack of a responsible declaration may mean operating outside the tourism system. Exact sanctions must be confirmed locally on the date of the decision.

Can the community restrict tourist rentals?

Yes, but the scope and procedure depend on the country. In Spain, Article 17.12 of the Horizontal Property Act (Ley de Propiedad Horizontal) gives communities the tools to restrict, condition, and additionally burden tourist activities, with a specified majority of owners and shares. In Dubai, a similar effect may result from building rules, NOCs, and owner associations. In Oman, control may come from master community regulations or the operator agreement.

Do medium-term rentals require the same documents as short-term rentals?

Not always. Medium-term rentals may be treated differently than classic tourist stays, but the boundary depends on local definitions, length of stay, advertising methods, and the scope of services. If the property is promoted on tourism channels, offers rotational stays, and operates like accommodation, authorities may require documents similar to those for a short-term rental. Therefore, one should not assume that extending the stay automatically removes licensing obligations.