Property Gifting in Dubai: A Complete Guide
Gifting Dubai Property
Considering gifting your property in Dubai? The process offers a seamless way to transfer ownership, whether for family, inheritance planning, or asset protection.
At EZONE, we bring expertise in conveyancing and can help you establish an offshore entity or foundation for property ownership, ensuring your assets are safeguarded.
What is a Property Gift Transfer in Dubai?
A property gift transfer, also known as “a property grant” or “Hiba,” is the voluntary transfer of real estate from one person (the donor) to another (the donee) without payment or consideration.
How is a Property Gift Transfer Different from a Property Sale?
The primary distinction between a gift transfer and a sale is the lack of a payment requirement.
In Dubai, gift transfers also incur lower fees from the Dubai Land Department (DLD)—0.125% of the property value – compared to 4% for sale transactions, making gifting a cost-effective option.
Who Can Receive a Gifted Property in Dubai?
Under Dubai regulations, you may gift property to “first-degree relatives” (parents, spouses, and children) or a company you own.
It’s important to note that siblings, stepparents, and stepchildren don’t qualify under this rule, nor can properties be gifted multiple times to prevent rule misuse.
The Dubai Land Department (DLD) applies reduced registration fees for these transfers, typically around 0.125% of the property value, compared to the standard 4% for non-relative transactions.
However, gifting property to other relatives, like siblings or extended family members, may require paying the full registration fee, depending on the specific circumstances and DLD policies.
Key Restrictions on Property Gifting
Only ready properties with a clear title can be gifted. Off-plan properties aren’t eligible until title issuance. If the property is mortgaged, the bank’s approval is required, and the mortgage may need to be settled or transferred.
Additionally, “double gifting” is restricted, with DLD disallowing multiple gift transfers on the same property.
Required Documentation for Gifting
To complete the gift transfer, you’ll need the following:
- Clear title deed
- Proof of the first-degree relationship (e.g., birth or marriage certificates)
- If relevant, company documents to establish ownership.
Depending on the property, approvals from the DLD, developer, and facilities management may also be necessary.
What Are the Costs?
0.125% of the valuation value of the gifted property, provided that the fee shall not be less than AED 2,000
AED 250 title deed issuance fee
AED 100 for a land map of lands outside of the authority of Dubai Municipality
AED 225 fee for land map of unified map fees at Dubai Municipality
AED 250 fee for a villa and apartment
Service partners fees (ex. Real Estate Trustees):
If the property price is more than or equal to AED 2,000,000, a fee of AED 4,000 + the VAT for the service partners fee.
If the property price is less than AED 2,000,000, a fee of AED 2,000 + VAT for the service partner fee Contact us for a detailed cost estimate tailored to your property.
Contact EZONE for a more comprehensive costing.
Why Consider Gifting Property in Dubai?
Property gifting is popular for inheritance planning, enabling you to distribute assets as desired during your lifetime. Without such planning, Dubai courts will manage the distribution of assets among legal heirs, possibly beyond the immediate family.
Do You Need an Expert?
Although seemingly straightforward, the gifting process can take weeks and may require both parties to complete formalities.
Our team at EZONE can simplify this for you, managing all steps on your behalf to ensure a seamless transfer.
Let us help you gift your property to your family or protect your assets through our specialized property gifting services. Contact us today to discuss your property gifting needs, whether transferring to children, spouses, parents, or even a company.
