What is property gifting?
Property gifting enables property owners to record gifted property in full or in part by assigning a property to a single person, a group of people (first-degree relatives: mother, father, spouse, or children), or corporations, provided that the property is not restricted or granted.
In the Dubai Land Department, the person or business giving the gift is referred to as the “Donor,” and the organization receiving the gift or the land is referred to as “a Donee.”
What are the required documents?
To undertake the gifting of properties, the Dubai Land Department requires specific approved evidence of paperwork. This proof typically takes the form of copies of the spouses’ marriage certificates and passports, the children’s and parents’ birth certificates and passports, or a company license.
For Individuals:
- Title deed of the owner.
- No Objection Certificate (NOC) from the Developer.
- Evaluation Certificate of the property from Dubai Land Department.
- Birth Certificate (if the Gifting is for children: son or daughter & parents: Mother or Father).
- It should be attested in the Ministry of Foreign Affairs from the origin country, Emirates Embassy from the origin country, Ministry of Foreign Affairs in Dubai and Arabic legal translation.
- Marriage Certificate (if the Gifting is for spouse: husband or wife).
- It should be attested in the Ministry of Foreign Affairs from the origin country, Emirates Embassy from the origin country, Ministry of Foreign Affairs in Dubai and Arabic legal translation.
- Original passport, visa and Emirates ID.
- Succession certificate (in case of owner’s death & inheritance transfer).
For company:
- Title deed of the owner.
- No Objection Certificate (NOC) from the Developer.
- Evaluation Certificate of the property from Dubai Land Department.
- Trade License for LLC company.
- Certificate of Incorporation (for JAFZA/Offshore).
- Certificate of Incumbency (for JAFZA/Offshore).
- Certificate of Good Standing (for JAFZA/Offshore).
- Memorandum of Association (MOA) with Arabic translation.
- Shareholder’s passport, visa and Emirates ID.
- Power of Attorney AND/OR Board of Resolution.
For Mortgage:
Giving away real estate that has a mortgage on it is not very usual, but it is doable. To complete the transfer of ownership, the Owner’s/bank Donor’s would either need that the mortgage balance be fully paid off or collaboration with the bank. Mortgage release fees to the Dubai Land Department of (AED 1590), mortgage re-registration fees at the Dubai Land Department of (0.25% of the mortgage amount), and trustee fees would increase the costs in such a process (AED 4000)
For Off-plan:
It is important to note that an off-plan property cannot be Gifted. However, if the property is still under SPA with the Developer and not registered yet in Dubai Land Department then internally it can be requested to change the names and re-assign directly with the Developer.
What are the associated transfer fees? The difference between 4% transfer fee and 0.125%
The transfer fee that must be paid to the Dubai Land Department is reduced to 0.125% of the property value and not 4% if the owner chooses to gift the property whole or in part to a first-degree relative or business. The lower Gift rate will not apply if the owner wishes to Gift their property to a brother or sister; instead, a 4% DLD transfer fee will be charged.
Indeed, our expertise will be guiding you through the entire process from assessing your deal and ensuring that you have all your documentation in place and all the way up to gaining approvals from the authorities in the Dubai Land Department to complete your transaction of Gifting.
