Gifting property in Dubai is now easier with just a nominal fee of 0.125%!
When you gift a property to someone in Dubai, you will be exempt from the usual 4% transfer fee on standard ownership transfers. Thus, it becomes one of the easiest and most convenient ways of transferring property ownership to first-degree relatives.
Take the help of proficient law consultants in Dubai for successfully executing property gift transfers. Remember, gifting a property in the country is not just about optimizing the ownership transfer cost, but is also a succession planning method for avoiding default implication of the Sharia rules or asset devolution.
In this article, you will learn briefly about all the important attributes of property gifting rules in Dubai, and how you can seek the help of legal services for getting started with the process.
Seeking a gift transfer of property in Dubai is a widespread practice for passing the ownership of a personal real estate asset to someone in the family. In Arabic terms, people in Dubai refer to this process as hiba. Gifting transfer of property can be done either in full or partially, and between two family members, individuals, and companies, or vice versa.
One of the most evident reasons for property transfer is inheritance and succession planning. With the help of real estate legal services in the UAE, you can transfer the title deed of a property to someone in your family or first-degree relatives. The names on the deed will also be changed, transferring all the property rights thereafter.
The property gift transfer fees in Dubai are pretty straightforward, as they are specified by just two rules, which include:
Here are a few circumstances that will explain the eligibility of someone to receive a property gift in Dubai:
When talking about first-degree relatives, it means your parents, spouse, or children are eligible to receive your property as a gift. In a recent modification of Dubai Land Department property gift transfer laws, ownership of a real estate asset cannot be passed among siblings.
If you have a holding corporation, your property can be safeguarded through a gift transfer. This way, you will be able to avoid any potential inheritance problems. The current property owners will continue to have authority on the property, but only through a different entity, considering they are shareholders of the company.
Here are the steps that go into successfully executing property gifting in Dubai, either for inheritance purposes, succession planning, or personal decisions:
You do need a title deed for the property that you are about to gift! Any off-plan property or apartment cannot be transferred as a gift under the Dubai Land Department.
Some additional documents that you will need as part of your property gifting process in Dubai are:
The developer must issue a NOC document to certify that they hold no objections against the transfer of the mentioned property. Following that, the NOC will also specify that there are no obligations or unpaid bills linked to the property that might hinder the gift transfer process.
You will then have to pay the nominal property gift transfer fees to DLD, followed by registration trustee and administrative fees to complete the process.
It will then take 2-3 weeks to finish the property gift transfer process. DLD requires all the involved parties to be present at the time of title deed transfer. However, if someone isn’t present in the UAE, it is advised that they appoint a Power of Attorney.
Once all the paperwork is complete and the fees are paid, the trustee’s office will then execute the property transfer as a gift, resulting in the creation of a new title deed. Henceforth, the gift receiver will then own the property.
At RH and HALE, we have the best real estate lawyers in Dubai to provide you with end-to-end legal solutions associated with real estate transactions. With respect to gifting a property in Dubai, it might seem like a simple process; however, it can take a complicated turn with instances such as a simple documentation mistake, donor or donee unavailability, or other such issues.
Therefore, having a legal professional to advise and guide you on the steps and fees involved with gifting a property in Dubai will make the process simplified and legally hassle-free!
Being one of the best law firms in Dubai, we will be managing the entire procedure for you, while protecting your rights and adhering to your interests. Not just property gifting, but for any other legal counsel associated with real estate transactions, RH and HALE are at your service.
Feel free to reach out to us for more information!
It is basically a process where someone does a voluntary transfer of his/her property to someone in the family or close relatives. There are legal procedures involved in the process, and you might need legal help to execute the transfer perfectly.
Yes, in Dubai, you can only gift your property to first-degree relatives such as children, spouses, or parents. Stepchildren, stepparents, and siblings do not qualify for receiving property gift transfers.
It is a similar process of transferring ownership of a property from one individual to another, only without any monetary exchange.
Yes, you can seek help of lawyers in Dubai to streamline the property gifting process, as they will be helping you with documentation, ownership transfers, fee structure and other such tasks involved.