In Dubai, a gift of property is common since it offers the benefit of avoiding the usual 4% transfer fees payable to tranfer properties in Dubai.
What is a gift transfer?
In Dubai, a gift transfer of property can be made between first-degree relatives or next of kin. Parents, children, and husband/wife are the first-degree relatives who can transfer properties as a gift.
Due to recent changes in the rules and regulations, any gift transfer between siblings is not permitted by the Dubai land department. Such a property transfer is not regarded as a gift transfer and therefore the customary 4% transfer fee paid to the land Department apply at the time of transfer.
For a gift transfer between the above-mentioned first degree relatives, a nominal transfer fee of 0.125% of the value of the property applies at the time of transfer.
How do we gift a property in Dubai?
The process of gifting a property in Dubai is as follows:
- The owner should get an evaluation report on the value of the plot from the land department after paying a sum of AED 4,100.
- The owner should get clearance through an NOC from the property developer.
- An official document that shows the first-degree relationship between the owner and the relative must be presented. The person providing it has to provide a birth certificate that proves he/she is the father/mother of the recipient. The document has to be legalized and certified at the Ministry of Foreign Affairs in the UAE and by the UAE embassy from their home country. Visiting any Trustee office will then facilitate the transfer of the property once all the original copies of the above-mentioned documents are ready.
What is the cost of a gift transfer of property?
The cost of a gift transfer of property in Dubai is as follows:
- The minimum gift transfer fee payable to the land department is AED 2,000. However, if the value of the property is above AED 500,000, the transfer fee payable shall be 0.125% of the value of the property based on the evaluation certificate issued by the Dubai Land Department.
- A fee of AED 580 for the name change on the title deed.
- A fee of AED 2,000 or AED 4,000 depending upon the evaluation of the property payable to the trustee offices.
Once the above documents and the cost have been paid at the trustee office, the trustee office would execute the transfer of the property which would result in the issuance of a new title deed in the name of the first degree relative. Once the new title deed has been issued, the relative will become the official owner.
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