The Steps for the Registration of Gifted Property in Dubai from A to Z

The concept of gift property is well known in Dubai and other places in the UAE. It is popular because it offers an entire fee exemption from the usual 4% transfer fee that has to be paid in any property transfer that happens within the United Arab Emirates.

But who is eligible to attain such an exemption? This is where a gift property comes in handy. This article will lay out and explain the rules behind registering a gifted property and the steps on how to do it.

What is a gifted property?

First of all we need to understand the meaning behind the term for those who have never come across it already. A gifted property is a voluntary gift transfer of a property from one owner to another without any expected fees in return. It is called “Hiba” in Arabic which means a gift.

Property gifting can happen in the case of first-degree relatives, which includes children, parents, and spouses. It is not possible to gift a property to siblings or other extended family members.

Who is eligible for registering a gifted property?

1- Gift property to a first degree relative:

Only first-degree relatives are eligible to register a gifted property in the UAE. This includes parents, children, and spouses.

2- Company transfers:

You can transfer ownership of your property to a holding company, which is a different legal entity. This can help avoid unexpected inheritance problems. As shareholders of the holding company, you will still own your property indirectly. Gifting property to an offshore holding company allows you to continue managing and owning it in the UAE.

Documents needed for registering a gifted property:

Gift deed:

this is a document that describes the gift’s terms such as the description of the property, the signatures of both the donor and the donee, and the date of the gift.

Title deed:

the property must have a title deed which is the document that proves ownership of the property to begin with.

No Objection Certificate (NOC):

NOC is issued from the developer of freehold areas through the Dubai REST App

Valuation certificate from Dubai Land Department DLD:

This document is required for the registration of all properties.

Identification:

passports and IDs of the donor and donee are required for identity verification only.

Proof of relationship between the donor and donee:

documents are required to prove the relation of first-degree relatives. For example, a birth certificate must be presented for a parent-child relationship, and a marriage certificate is required for a husband-wife relationship.

Steps for registering a gifted property:

First, Applicants can initiate a request to register a gifted property at any Dubai Land Department's (DLD) office. Secondly, you can submit the required documents to an employee, who will upload them to the DLD digital safe. The employee will then enter the transaction details into the system and audit them. Then once the applicant pays the processing fee and receives the payment receipt, the request will be processed. The applicant will receive an email notification of the outcome.

The fees for registering a gifted property:

Property gifting in the UAE is a popular way to transfer property to family members, as it is a relatively straightforward process and there is a significant reduction in the transfer fee. The transfer fee for gift transfers is 0.125% of the value of the property, compared to the standard transfer fee of 4%.

If you’re considering registering a gifted property in Dubai or any other emirate in the UAE, we encourage you to seek advice at RE/MAX UAE to ensure that you understand the terms and steps for registration. Please call +971 4 589 7376 or contact us here.