Search
Close this search box.

Passing On Dubai’s Property Torch: Top Tips & Tricks

Home / Property Law / Passing On Dubai’s Property Torch: Top Tips & Tricks

Dubai has been a popular destination for property investment for a long time now. It is one of the most sought after cities in the world for luxurious living. With its stunning architecture, world-class amenities, and year-round sunshine, Dubai attracts investors from all across the globe. Dubai has a unique set of rules and regulations when it comes to property investment and gifting. In this article, we will discuss everything you need to know about gifting property in Dubai.

An Overview

Gifting property in Dubai means transferring the ownership of the property from one person to another as a gift. The property can be gifted to anyone, such as a family member, friend, or business associate. The process of gifting a property in Dubai is straightforward, but it involves several legal procedures.

1. Eligibility Criteria for Gifting Property

To gift a property in Dubai, the donor must be a legal owner of the property. The donor should also have a valid Emirates ID and passport. The recipient must also meet the eligibility criteria set by the Dubai Land Department (DLD). The DLD requires the recipient to be over 21 years of age and have a valid Emirates ID.

2. Procedure for Gifting Property

The process for gifting a property in Dubai involves several steps. The first step is to obtain a no-objection certificate (NOC) from the developer of the property. The NOC confirms that there are no outstanding payments or legal disputes on the property.

The next step is to prepare a gift deed, which is a legal document that transfers the ownership of the property from the donor to the recipient. The gift deed should be drafted by a registered lawyer and signed by both the donor and the recipient.

The gift deed, along with other documents such as the NOC, Emirates ID, and passport, should be submitted to the DLD for approval. Once the DLD approves the transfer of ownership, the recipient becomes the legal owner of the property.

3. Fees and Taxes

Gifting a property in Dubai involves several fees and taxes. The fees include the transfer fee, which is 4% of the property value, and the registration fee, which is 0.25% of the property value. The recipient may also have to pay a mortgage registration fee if the property has a mortgage.

4. Inheritance and Gift Tax

Dubai does not have inheritance or gift tax. However, the recipient may have to pay taxes in their home country if they are a non-resident of Dubai.

5. Risks and Precautions

Gifting a property in Dubai involves several risks and precautions. The donor should ensure that there are no outstanding payments or legal disputes on the property. The donor should also obtain a valuation report of the property to determine its fair market value.

The recipient should ensure that the gift deed is properly drafted and registered with the DLD. The recipient should also verify the authenticity of the documents submitted by the donor.

6. Advantages of Gifting Property

Gifting a property in Dubai has several advantages. It can be a valuable gift for family members or business associates. It can also be used as a tax-efficient estate planning tool. Gifting a property can help the donor reduce their taxable estate and transfer their wealth to the next generation.

Conclusion

Giving a property in Dubai involves several legal procedures and fees. The donor and the recipient must meet the eligibility criteria set by the DLD. The gift deed should be properly drafted and registered with the DLD. Gifting a property can have several advantages, but it also involves several risks and precautions. Therefore, it is important to seek professional advice before gifting a property in Dubai.

Looking for experienced family lawyers in Dubai, UAE? Look no further than Al Kabban & Associates! With over 30 years of experience and a strong commitment to providing exceptional legal representation, our team of experts is here to help you navigate even the most complex legal issues. Contact Al Kabban & Associates today to learn more about how we can assist you!

Search

News & Articles

Scroll to Top