Complete Guide to Gifting Property in Dubai: Legal Steps, Fees, and Key Conditions

Thinking about gifting property in Dubai? Whether you want to transfer ownership to a loved one or as part of inheritance planning, property gifting is a meaningful gesture. However, it involves a structured legal process overseen by the Dubai Land Department (DLD). In this guide, we explain the key steps, costs, and restrictions, along with expert advice from Holo to help you navigate this process smoothly and efficiently.

What Is Property Gifting in Dubai?

Property gifting is the legal transfer of property ownership without a sale. Instead of buying and selling, one party gives the property to another, often between family members. In Dubai, this process is regulated by the DLD to ensure all transfers are properly documented and meet legal requirements.

Common Scenarios for Property Gifting:

• Transferring property to a spouse or child.
• Estate and inheritance planning.
• Providing financial support to family members.

Unlike a sale, property gifting involves a different fee structure and specific documentation requirements. Understanding these differences is crucial to avoid unnecessary delays.

Can Expats Gift Property in Dubai?

Yes, expats can gift property in Dubai, but there are certain conditions. Property gifting is only permitted in freehold areas where foreign ownership is allowed. For UAE nationals, gifting property is generally easier, with fewer restrictions.

Key points to remember:

• UAE Nationals: Can gift property to family members without additional approvals.
• Expats: Can gift property in freehold areas but may require extra documentation.

Itbs important to verify the propertybs location and ensure it falls within an eligible area before starting the process.

Step-by-Step Guide to Gifting Property in Dubai

To make the property gifting process straightforward and efficient, follow these key steps:

Step 1: Verify Ownership Documents

Start by ensuring the property is in your name and that you have all the necessary ownership documents ready. This step is crucial to avoid delays during the transfer.

Checklist:

• Original title deed.
• Emirates ID and passport copies.
• Proof of relationship (if gifting to a family member).

Pro Tip: Holo experts recommend verifying the accuracy of your title deed and ensuring all details are up to date.

Step 2: Prepare the Required Legal Documents

The DLD requires a set of documents to process the gift transfer. Make sure you gather all the necessary paperwork before visiting the DLD.

Documents needed:

• Emirates ID and passport copies of both parties.
• Marriage certificate (for spouses).
• Birth certificate (for children).
• No Objection Certificate (NOC) from the property developer, if applicable.
• Power of Attorney, if a representative is managing the process on your behalf.

Step 3: Visit the Dubai Land Department (DLD)

With your documents in hand, head to the Dubai Land Department or a registered trustee office to initiate the transfer process.

At the DLD:

1. Submit the required documents.
2. Complete the property valuation process, if needed.
3. Confirm all fees and charges.

Holo can assist you in scheduling appointments and ensuring all your paperwork is in order to avoid delays.

Step 4: Pay the Applicable Fees

The DLD charges specific fees for property gifting, which are calculated based on the propertybs market value.

Herebs a breakdown of the main fees:

• Gifting Fee: 0.125% of the propertybs market value.
• Trustee Office Fees: AED 4,000 to AED 6,000, depending on the propertybs value.
• Valuation Fee: AED 2,500 to AED 5,000, if applicable.
• Miscellaneous Fees: Knowledge fee (AED 580) and Innovation fee (AED 290).

For example, if your property is valued at AED 2 million, the gifting fee would be AED 2,500.

Note: These fees are typically paid by the receiver of the property.

Step 5: Transfer Ownership and Receive the New Title Deed

Once the fees are paid, the DLD will finalize the ownership transfer. The new owner will receive an updated title deed reflecting the change.

Important Tip: Ensure you keep all receipts and official documentation for future reference.

How Much Does It Cost to Gift Property in Dubai?

The cost of gifting property in Dubai depends on several factors, including the propertybs market value and any additional fees charged by the DLD. Typically, the key fees include the gifting fee, trustee office fees, valuation fees, and miscellaneous charges. For a property valued at AED 2 million, the total costs may range between AED 7,000 to AED 15,000 depending on the services required.

Itbs essential to budget for these fees and ensure that the receiver is aware of the costs involved.

Who Can Receive a Gifted Property in Dubai?

While property gifting in Dubai is generally allowed between family members, there are restrictions on who can receive a gifted property.

Eligible recipients include:

• Spouses
• Children
• Parents
• Siblings (in some cases)

If you wish to gift property to someone outside your immediate family, additional approvals from the DLD may be required.

Additional Conditions for Property Gifting

Before starting the gifting process, itbs important to be aware of these key conditions:

1. Mortgage-Free Property: If the property has an outstanding mortgage, you will need the bankbs approval to proceed with the gifting process.
2. Power of Attorney: If someone is acting on your behalf, they must have a valid Power of Attorney to handle the process.
3. Property Location: Ensure the property is in a freehold area where foreign ownership is permitted.

These conditions are essential to ensure the process goes smoothly without unexpected issues.

Conclusion

Gifting property in Dubai is a meaningful way to transfer ownership to loved ones, but the process requires careful attention to legal and procedural details. By following the steps outlined in this guide, you can avoid common pitfalls and ensure a smooth, efficient transfer.

Ready to start the property gifting process? Our experts are here to help. Contact us today for a seamless, worry-free experience.