Property gifting in Dubai is a customary practice, often employed for inheritance or succession planning purposes. The process entails the voluntary transfer of property, either in full or partially, between individuals or entities, with a significantly reduced transfer fee administered by the Dubai Land Department. As we started the new year with several coming occasions with your beloved family, it's opportune to consider gifting your property to your cherished family members, and herein lies a reminder about the requisites and eligibility criteria set forth by the Dubai Land Department governing property gifting in Dubai.
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Who Can Receive a Gifted Property?
Property gifting allows owners to register granted properties, whether in full or in part, to individuals or groups, such as first-degree relatives (including mother, father, spouse, or children) or companies (if the owner is the shareholder of the company).
Legalized Documentation Requirements:
The Dubai Land Department mandates certain legalized documents as evidence for property gifting. These typically include marriage certificates and passport copies of spouses, or birth certificates and passports of children and parents, as well as licenses for companies.
Understanding Transfer Fees:
One of the significant advantages of property gifting in Dubai is the substantial reduction in transfer fees. When gifting property to first-degree relatives or companies, the transfer fee is a mere 0.125% of the property value, as opposed to the standard 4%. However, if the intended recipient is a brother or sister, the reduced gifting rate does not apply and the standard 4% DLD transfer fee is applicable.
Considerations for Mortgaged Properties:
While gifting a mortgaged property is less common, it is feasible. In such instances, the donor's bank typically requires the mortgage amount to be settled in full or coordinated with for the transfer of ownership. This process incurs additional costs, including mortgage release fees to the Dubai Land Department, mortgage re-registration fees, and trustee fees.
Off-Plan Property Considerations:
It's imperative to note that off-plan properties cannot be gifted outright. However, if the property remains under a Sales Purchase Agreement (SPA) with the developer and has not been registered with the Dubai Land Department, internal procedures may allow for name changes and re-assignment directly with the developer.
Conveyancing Guidance Through the Process:
Navigating the particulars of property gifting necessitates expertise and guidance. Our team is committed to assisting you throughout the entire process, from assessing your deal and ensuring all documentation is in order, to securing approvals from the authorities at the Dubai Land Department to facilitate a seamless transaction.
In conclusion, property gifting in Dubai offers a viable avenue for transferring assets to loved ones or entities, with favorable terms and reduced fees. As you contemplate your property affairs in the coming year, consider the benefits and implications of gifting and consult with our experts for personalized guidance and support.
For further inquiries or assistance regarding Property gifting, please do not hesitate to contact us at 00971588229107, or email us at [email protected] or [email protected]. Alternatively, you can visit our website at www.famconveyancing.com for comprehensive information about our services. Embrace this opportunity to gift your property, backed by the expertise and guidance of Fam Properties.