Gifting Property in Dubai – Complete Guide

As a Dubai property owner, you may be concerned about the high transfer fees of passing on your valuable assets to your loved ones. But have you heard about the mysterious and intriguing “gift transfer” option?

By exploring the world of gifting property in Dubai, you can discover how this affordable and generous option can help secure your family’s future. With a gift transfer, property ownership takes on a new dimension that can benefit you and your loved ones for years.

The Gift of Property: What You Need to Know

Imagine owning real estate in the bustling city of Dubai and giving a piece of it to a loved one. It’s a selfless gesture ensuring their future without expecting anything in return. This gesture is called a “gift transfer” or “Hiba transfer” in Arabic.

The lack of monetary consideration sets a gift transfer apart from traditional property transactions. It’s a thoughtful and cost-effective way to show your love and generosity in a city where property transactions can be expensive.

Unlocking Eligibility: Who Can You Gift to?

If you are considering gifting property in Dubai, it’s essential to understand who is eligible to receive it. Gift transfers are limited to “first-degree relatives,” which includes parents, children, and spouses. This means you can gift your property to your closest family members, ensuring that your generosity benefits those dearest to you.

It’s worth noting, however, that siblings, stepchildren, and stepparents are not considered “first-degree relatives.” While you may be emotionally connected to these family members, you cannot gift your property to them. In the past, some people used creative strategies like “double gift transfers” to get around these restrictions, but new regulations have stopped these practices.

Under current Dubai Land Department regulations, a property can only be gifted once. Any subsequent change of ownership will likely involve a sale-and-purchase transaction. So, if you’re planning to gift your property, ensure you do it right the first time and only to eligible family members. Figure out if you can afford Dubai land department gift transfer fees.

Navigating the Document Maze: What’s Required?

Before transferring property as a gift, gathering all the required documents is necessary to ensure a hassle-free process. To help you prepare for this, we have put together a checklist of the required documents:

1. Original Deed of Title

The original title deed serves as crucial evidence of ownership and is mandatory for gift transfers. However, it is essential to note that off-plan units under construction cannot be gifted.

2. Evidence of a First-Degree Relationship

It is essential to have documentation proving the relationship between the donor and the beneficiary to establish the relationship. For parent-child relationships, a birth certificate is usually sufficient. For spousal relationships, a marriage certificate and, in some cases, a letter from the Dubai Courts confirming the marital status may be required. If the certificates were issued outside the UAE, they must be appropriately legalized and translated.

3. Documents about the company or entity (if applicable):

The entity’s constitutional documents are required if either the donor or the beneficiary is a company or legal entity. These documents reveal the ultimate owners’ identities and the existence of a first-degree relationship.

Additionally, approvals and content letters from developers, facility management companies, and relevant authorities may be necessary throughout the process. The specific requirements may differ depending on the property type and gifting scenario.

Counting the Cost: What’s Your Investment?

When considering gifting a property, it is essential to understand the financial implications involved. The cost of a gift transfer is determined by the type of property, its value, and its unique features. Compared to a traditional sale-and-purchase transfer, gift transfers can offer significant savings. Here’s how it works:

Sale-and-Purchase Transfer: 

A sale-and-purchase transfer typically charges a 4% fee based on the sale price and an additional administrative fee. In contrast, a gift transfer requires only a 0.125% fee based on the property’s official value, the cost of property registration, and a new title deed. The latter option can be significantly less expensive, making it a more cost-effective solution.

Gift Transfer:

It is best to consult with property gifting experts to get a precise cost estimate tailored to your property. They can provide a detailed breakdown of your costs, ensuring transparency and clarity throughout the process.

The Gift of Legacy: Why Choose a Gift Transfer?

Gift transfers are becoming increasingly popular in Dubai due to their unique ability to facilitate inheritance and succession planning. By choosing this option, you retain control over your property’s fate, ensuring you wish to use it during your lifetime.

It is significant for non-Muslims who may not have a will and risk having their assets, including real estate, divided by the court among extended family members. With gift transfers, you can protect your legacy, secure your family’s future, and honor your intentions.

Expert Guidance: The Key to a Seamless Gift Transfer

The process regarding gift transfers may seem straightforward, but it can be quite intricate and time-consuming, and it may take up to six weeks to complete. If you or someone dear to you cannot attend the required formalities, it is wise to seek professional assistance. Property gifting experts can help you navigate the complexities, ensuring a smooth and stress-free experience.

At Kelt&CO Realty, we specialize in property gifting services and provide expert assistance to clients in various situations, including property gifting to children, parents, spouses, and corporations. Our team is dedicated to making the gift transfer process easy and stress-free. With our professional expertise and support, you can ensure that your property reaches its intended beneficiaries promptly and efficiently.

Property gift transfers in Dubai are more than just real estate transactions; they are acts of love and foresight. This option opens up the possibility of shaping your family’s future for future generations. Whether you’re considering gift transfers for their affordability or to honor your intentions, it’s a beacon of hope in the world of property ownership.

Embark on Your Gift Transfer Journey Today

At Kelt&CO Realty, we are committed to helping you every step of the way as you consider the options for gift transfers. We understand that you want to bestow property on your loved ones, and we are here to make the process as easy and heartwarming as possible. So, if you’re looking for expert assistance in gifting property in Dubai, visit Kelt&CO Realty. Contact Kelt&CO Realty to start your gifting journey and unlock endless possibilities.

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