Gifting Property in the UAE: Regulations and Fees

March 10, 2024

Gifting property in the UAE can be a meaningful gesture, whether it's transferring ownership to a family member or a company. However, there are regulations and fees to consider before making such a decision.

Regulations:

Under current regulations, you can gift your property to your first-degree family members, including children, parents, and spouses. Additionally, you can transfer property as a gift between individuals and their companies. It's important to note that the process of gifting property involves legal procedures and documentation to ensure a smooth transfer of ownership.

Fees:

One of the key advantages of gifting property in the UAE is the reduced fee compared to the sale and purchase transfer. In the case of property gifting, the Dubai Land Department (DLD) fees equal to 0.125% of the property value, which is significantly lower than the 4% fee for sale and purchase transfers. This makes gifting a more cost-effective option for transferring property ownership.

Procedure:

To gift a property in the UAE, you will need to follow a specific procedure that includes preparing a gift deed, obtaining approval from the DLD, and registering the transfer of ownership. It's advisable to seek legal advice to ensure that the process is completed correctly and in accordance with the law.

Conclusion:

Gifting property in the UAE is a viable option for transferring ownership to family members or entities. With lower fees and clear regulations, it can be a straightforward process when done correctly. However, it's essential to understand the legal requirements and seek professional advice to avoid any complications.

If you need further assistance or have any questions, feel free to contact us.