diff --git a/core/storage/xen.py b/core/storage/xen.py
index 853f0268..1647eeb8 100644
--- a/core/storage/xen.py
+++ b/core/storage/xen.py
@@ -271,8 +271,14 @@ class XenPool(Pool):
         assert vm is not None
         assert dir is not None
 
-        if not os.path.exists(dir):
-            os.mkdir(dir)
+        appvms_path = os.path.join(dir, 'appvms')
+        servicevms_path = os.path.join(dir, 'servicevms')
+        vm_templates_path = os.path.join(dir, 'vm-templates')
+
+        self._create_dir_if_not_exists(dir)
+        self._create_dir_if_not_exists(appvms_path)
+        self._create_dir_if_not_exists(servicevms_path)
+        self._create_dir_if_not_exists(vm_templates_path)
 
         self.vmdir = self._vmdir_path(vm, dir)
         self.vm = vm
@@ -314,3 +320,10 @@ class XenPool(Pool):
 
         return os.path.join(pool_dir, subdir, vm.name)
 
+    def _create_dir_if_not_exists(self, path):
+        """ Check if a directory exists in if not it is created.
+
+            This method does not create any parent directories.
+        """
+        if not os.path.exists(path):
+            os.mkdir(path)
diff --git a/tests/storage.py b/tests/storage.py
index e1b408f7..8a5f949f 100644
--- a/tests/storage.py
+++ b/tests/storage.py
@@ -134,7 +134,7 @@ class TC_01_Pool(SystemTestsMixin, QubesTestCase):
         self.assertTrue(qubes.storage.pool_exists('test-pool'))
 
     def test_002_pool_dir_create(self):
-        """ Check if the storage pool dir was created """
+        """ Check if the storage pool dir and subdirs were created """
 
         # The dir should not exists before
         self.assertFalse(os.path.exists(self.POOL_DIR))
@@ -145,6 +145,9 @@ class TC_01_Pool(SystemTestsMixin, QubesTestCase):
                            pool_name='test-pool')
 
         self.assertTrue(os.path.exists(self.POOL_DIR))
+        self.assertTrue(os.path.exists(self.APPVMS_DIR))
+        self.assertTrue(os.path.exists(self.SERVICE_DIR))
+        self.assertTrue(os.path.exists(self.TEMPLATES_DIR))
 
     def test_003_pool_dir(self):
         """ Check if the vm storage pool_dir is the same as specified """