Due to the benefit of being exempt from the regular 4 per cent transfer fee levied on all property transfers in Dubai, gifting property is a well-liked idea there. Any transfer between first-degree relatives can be accepted as a gift transfer to cover the transfer charge at the Dubai Land Department.
The term “Hiba” (Arabic for “gift”) is widely used to describe a present. To gift real estate property in Dubai, we must comprehend what that entails and the connected steps and expenses.
What is Gifting Property in UAE?
For succession and inheritance purposes, gift transfers are prevalent in Dubai, especially given the prevalence of Sharia Law. Gifting property in the United Arab Emirates often involves changing the names on a title deed so that another family member now owns the property.
Usually, this results from the requirement to protect the property from specific inheritance laws. Families or offshore corporations having a Dubai registration are given properties.
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How Much Does It Cost to Gift a Property in Dubai?
| Aspect | Gift Property Transfer Fees | Standard Property Transfer Fees |
| Transfer Fee Rate | 0.125% of the property’s declared value | 4% of the property’s declared value |
| Minimum Transfer Fee | AED 2,000 | Typically higher, based on the 4% rate |
The standard transfer fee of 4% that must be paid to the Dubai land department at the time of the property transfer does not apply to a transfer of property that is considered a gift transfer. However, a small transfer charge of 0.125% must be paid at the transfer time.
In other words, a person who owns real estate in Dubai may gift that property to members of their first-degree family by paying the Dubai Land Department a fee equal to 0.125 per cent of the property’s worth. Such changes won’t be less than AED 2,000.
Also read: Legal Options for Property Handover Delays in UAE
Who Is Eligible To Receive a Gift of Property As per the Law?
Gift Property to First-Degree Relatives
Parents, children, and spouses are considered first-degree relatives eligible to transfer the property as gifts. Due to recent modifications in the laws and regulations, the land department no longer permits any gift transfers between siblings.
Gifting is one method for preventing future Sharia law distribution issues if there is no will. It also makes succession planning easier.
Gift Property to Company
Using a holding corporation, you can safeguard your property. Transferring ownership of your property to a holding company is an additional option to avoid unanticipated inheritance problems.
Also read: Dispute Resolution for Residential Property Dispute in Dubai
Gifting Property in Dubai in 4 Steps
Step 1: Title Deed
First, the property must have a Title Deed. An off-plan apartment cannot be used as a gift at the Dubai Land Department. Additionally, it would be best if you had an Affection Plan and a Valuation Certificate.
Step 2: No Objection Certificate
A No Objection Certificate (NOC) must be provided by the developer to certify that they have no objections to the ownership transfer and that there are no unpaid bills or other obligations related to the property.
Step 3: Transfer Charges
The transfer costs are significantly reduced when using a Gift method and are merely 0.125 per cent of the property’s worth plus AED 590 (Minimum of AED 2,590).
Step 4: Title Transfer
Two to three weeks are needed to finish the process. To complete the Gift transfer, all parties would need to be present. Therefore, it is strongly advised that you utilize a Power of Attorney.
Once the trustee’s office has received the paperwork mentioned earlier and the fee has been paid, the trustee’s office will execute the property transfer, which will cause a new title deed to be issued in the donee’s name.
Also read: How a Property Lawyer in UAE Can Help
Need Legal Help?
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How HHS Lawyers and Legal Consultants Can Assist
On paper, it appears that the gift transfer process is straightforward. But it can also become a drawn-out and complicated process, especially if the property owner or the recipient cannot attend all the procedures necessary.
Whether you give anything to your kids, spouse, parents, or business, Property Lawyers in Dubai will help you with the gift transfer process.
For you, we can manage the entire procedure. If you have any queries about the gift transfer process or need legal counsel for wills, inheritance, or real estate transfer of property problems in Dubai, please don’t hesitate to contact us.
