Gifted Property in Dubai : Process, Documents & Fees

Want to pass on your Dubai property to your loved ones without breaking the bank? Look no further! Gifting property in Dubai is a fantastic way to transfer ownership to family members like parents, children, or spouses. Register a gifted property in Dubai without the usual 4% transfer fee. This type of transfer, known as “Hiba” in Arabic, requires specific documents. The application is submitted to the Dubai Land Department (DLD), and once processed, the transfer fee is significantly lower at 0.125% of the property value. This makes it a cost-effective way to secure family assets. In this blog, we will learn more about gifting property in Dubai.

How is Property Gift Registration Handled in Dubai?

Gifted property registration in Dubai is a process where property owners can transfer ownership to close family members, such as parents, children, or spouses, without incurring the standard 4% transfer fee. Instead, a reduced fee of 0.125% of the property’s value is charged. This process requires several documents, including a gift deed, title deed, No Objection Certificate (NOC), valuation certificate from the Dubai Land Department (DLD), and proof of the family relationship. The application is submitted through the DLD, making it a cost-effective way to secure property within the family.

Who Can Apply For Gifted Property Registration?

There are specific rules in Dubai on who can apply for the registration of a gifted property. This process is designed in such a way that it can facilitate property transfers between close family members and certain corporate entities. This makes it easier to manage and secure assets. Below is the breakdown of eligibility for gifted property registration:

• Transfer Property to a First-Degree Relative

In Dubai, only first-degree relatives are eligible to register for gifted property. The members that fall under this category are parents, children, and spouses. To qualify for the reduced transfer fee of 0.125% of the property’s value and avoid the standard 4% transfer fee, the transfer must be done between these family members.

• Company transfers

Property owners can also transfer ownership to a holding company. This is beneficial for managing inheritance issues and maintaining control over the property through a corporate structure. By transferring the property to a holding company, owners can ensure continued management and ownership of the property in the UAE, even as shareholders or beneficiaries change. This method provides a planned approach to property succession and corporate property management.

Registering A Gifted Property in Dubai

Registering a gifted property in Dubai requires careful preparation and specific documents to ensure the process is straightforward and legally sound. This process is intended to facilitate the efficient transfer of property within families. Below are the key documents you will need to register a gifted property in Dubai successfully.

1. Gift Deed: A gift deed is a legal document that outlines the terms of the property gift. It includes details such as the description of the property, the names and signatures of both the donor and the recipient, and the date of the transfer. This document is essential for formalizing the gift and ensuring it is legally recognized.
2. Title Deed: The title deed is proof of ownership of the property being gifted. It must be provided to establish the donor’s legal right to transfer the property. Without a valid title deed, the property cannot be registered as a gift.
3. No Objection Certificate (NOC): A No Objection Certificate is required from the developer of freehold areas. This certificate can be obtained through the Dubai REST App and confirms that the developer has no objections to the transfer of the property.
4. Valuation Certificate from Dubai Land Department (DLD): The valuation certificate is issued by the Dubai Land Department and determines the market value of the property. This document is necessary for calculating the transfer fee, which is 0.125% of the property’s valuation for gifted properties.
5. Identification Documents: Both the donor and the recipient must provide identification documents. These include Emirates IDs for residents or valid passports for non-residents. Identification is crucial for verifying the identities of both parties involved in the gift transfer.
6. Proof of Relationship Between Donor and Recipient: To qualify for the gifted property registration, proof of the relationship between the donor and recipient must be provided. For example, birth certificates are needed to prove a parent-child relationship, and a marriage certificate is required for spouses. These documents must be translated and certified by the relevant country’s embassy and their Ministry of Foreign Affairs.

What Documents Are Needed?

Having the right documents is essential for registering a gifted property in Dubai. Whether you are an individual, a UAE national, or a corporate entity, proper documentation will facilitate a seamless registration process. Here’s a detailed guide on the documents required for each type of applicant.

• For Individual Applicants

Individual applicants must provide a comprehensive set of documents to register a gifted property in Dubai. These include:

1. 1. Gift Deed: This document outlines the terms of the property gift, including details about the property, the donor, and the recipient, along with their signatures.
   2. Title Deed: Proof of ownership of the property being transferred.
   3. No Objection Certificate (NOC): Obtained from the developer of freehold areas through the Dubai REST App, confirming there are no objections to the property transfer.
   4. Valuation Certificate from Dubai Land Department (DLD): Establishes the market value of the property to calculate the transfer fee.
   5. Identification Documents: Emirates ID for residents or valid passports for non-residents to verify the identities of the donor and recipient.
   6. Proof of Relationship: Documents such as birth certificates or marriage certificates, translated and certified by the relevant country’s embassy and Ministry of Foreign Affairs to prove the relationship between the donor and recipient.

• For UAE Nationals

UAE nationals must submit similar documents with a few additional requirements:

1. 1. Family Book Extract: Proof of family relations, which can replace individual birth or marriage certificates.
   2. Emirates ID: This is proof of identity for both the donor and recipient.
   3. Other Standard Documents: Includes the gift deed, title deed, NOC, and valuation certificate from DLD, as detailed above.

• For Corporate Entities

Companies looking to register a gifted property must provide the following:

1. 1. Gift Deed: Detailing the property gift terms, including the company’s information and the recipient’s details.
   2. Title Deed: To prove ownership of the property by the company.
   3. No Objection Certificate (NOC): From the developer of freehold areas, obtained via the Dubai REST App.
   4. Valuation Certificate from DLD: To determine the property’s market value.
   5. Company Registration Documents: Proof that the company is legally registered and operating in Dubai.
   6. Identification Documents: Emirates ID for company representatives or valid passports if the representatives are non-residents.
   7. Proof of Relationship or Legal Right: For holding companies, documents showing legal rights or relationships to manage the property transfer.

Steps to Apply for Gifted Property Registration

Applying for the registration of a gifted property in Dubai is a systematic process. Knowing the required fees, payment methods, terms, and steps can streamline your application. Here’s a brief overview of the key points to guide you through the registration process.

• Service Fees: When applying for gifted property registration in Dubai, you will need to pay certain fees. The main fee is 0.125% of the property’s value, which is significantly lower than the standard 4% transfer fee. Additional charges may include a title deed issuance fee, land map fees, and other administrative costs. For properties valued at AED 2 million or more, a service partner fee of AED 4,000 plus VAT is applicable, while properties valued below AED 2 million incur a service partner fee of AED 2,000 plus VAT.
• Payment Options: Dubai Land Department (DLD) offers various payment methods to make the process convenient. Applicants can pay using ePay, Noqodi, a manager’s cheque in favour of DLD, or through the Sadad Dubai Platform. These options ensure that applicants can choose the most suitable and secure payment method for their needs.
• Terms and Conditions of Service: Certain terms and conditions must be met for the gifted property registration. The property must not have any outstanding mortgages or legal issues, and the title deed should be free of encumbrances. The property evaluation must be requested from DLD, especially for land gifts, and the residency status of the applicant should be either a UAE citizen, resident, or tourist. Companies must ensure they are properly registered before applying.
• Submitting the Application: To begin the registration process, the applicant needs to visit a Real Estate Registration Trustee Centre. There, they will submit all the required documents to an employee who will upload them to the DLD’s digital system. The transaction details will be entered into the system, and the documents will be audited for accuracy.
• Processing and Confirmation: Once the application is submitted and the fees are paid, the DLD will process the request. This involves verifying all the submitted documents and ensuring compliance with the regulations. The entire process typically takes about 25-30 minutes. After the request is processed, the applicant will receive an email notification confirming the outcome of their application.

Is Hiring a Professional Necessary for a Gift Transfer?

While it’s not mandatory to hire a professional to handle a gift transfer, doing so can be highly beneficial. A professional can navigate the legal complexities, ensure all documents are correctly prepared and submitted, and handle any unexpected issues that may arise. This can save time and reduce the risk of errors, making the process smoother and more efficient. If you’re unfamiliar with the procedures or want to ensure everything is handled correctly, hiring an expert can provide peace of mind and streamline the entire process.

Potential Tax Liabilities When Gifting Property in Dubai

Dubai generally does not impose taxes on property gifts, making it an attractive option for transferring assets within families. However, it’s crucial to be aware of the fees involved, such as the 0.125% property valuation fee. Additionally, while there are no direct taxes, it is advisable to consult with a tax professional to understand any indirect tax implications or future liabilities that might arise, especially if the property is part of a larger estate or involves international parties.

Conclusion

Registering a gifted property in Dubai is a straightforward and cost-effective process designed to facilitate property transfers within families. By meeting specific documentation requirements and paying a reduced transfer fee of 0.125%, close relatives such as parents, children, and spouses can seamlessly transfer ownership. Additionally, companies can use this process for strategic property management. While not mandatory, hiring a professional can ensure smooth navigation through legalities and paperwork. Overall, this process offers a practical solution for securing family assets and managing property succession in Dubai.

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