Dubai is a bustling city in the United Arab Emirates (UAE) that draws visitors from around the world. The city provides a luxurious lifestyle as well as great financial opportunities. Gifting property to someone is one option to invest in Dubai. Gifting property in Dubai is a legal process, but there are some important factors to consider. We will go over all you need to know about gifting property in Dubai in this article.

What is Gifting Property in Dubai?

In Dubai, gifting property is the legal procedure of transferring property ownership from one person to another without any monetary exchange. It is typically done as a goodwill gesture, but it can also be used to transfer property to family members to avoid inheritance tax. A formal contract must be registered with the Dubai Land Department (DLD) when a property is gifted in Dubai.

Requirements for Gifting Property in Dubai

To gift a property in Dubai, certain requirements must be met. These include:

1. Title Deed: The property’s title deed must be in the name of the individual who desires to give the property. If the title deed is in the name of a corporation, the corporation must approve the property transfer.

2. No Objection Certificate (NOC): If the property is mortgaged, the bank or financial institution holding the mortgage must provide a no objection certificate (NOC).

3. Legal Capacity: The person transferring the property must be of legal age. To enter into a formal contract, they must be at least 21 years old and mentally competent.

4. Acceptance of Gift: The recipient must accept the gift freely and have the legal capacity to do so. To enter into a formal contract, they must be at least 21 years old and mentally competent.

5. Payment of Fees: For the transfer of ownership, fees must be paid to the Dubai Land Department (DLD). These fees include a transfer charge, a registration fee, and (if applicable) a mortgage release fee.

Process for Gifting Property in Dubai

The process of gifting property in Dubai is quite simple, but several legal formalities must be followed correctly to ensure a smooth transfer of ownership. Here are some more facts on the procedures for gifting property in Dubai:

1. Preparation of Legal Contract

The most important document in the process of gifting property in Dubai is the legal contract. It must be meticulously drafted to ensure that all of the terms and conditions of the gift are included. The legal contract must be written in Arabic and signed by both the giver and the receiver. Two witnesses who are not related to either party should also be present.

The following information must be included in the legal contract:

• The gifter’s and receiver’s names and addresses

• The property description, including the title deed number and location

• The transfer fees and other expenditures associated with ownership transfer

• The date of ownership transfer

• Any further terms and conditions agreed upon by both parties

2. The Signing of the Legal Contract

Both parties must sign the legal contract in the presence of two witnesses who are not related to either side. To witness a legal contract, witnesses must be at least 21 years old and mentally competent. To authenticate their identities, all parties must present their original Emirates IDs or passports.

3. Registration with Dubai Land Department (DLD)

Within 60 days of signing, the legal contract must be registered with the Dubai Land Department (DLD). Fees must be paid and the legal contract and other required documents must be submitted as part of the registration process. The transfer fee, the registration charge, and the mortgage release fee (if applicable) are all fees associated with the transfer of ownership. The transfer fee is established by the DLD and is computed as a percentage of the property’s value.

4. Issuance of New Title Deed

When the ownership transfer is completed, a new title deed is issued in the name of the receiver. The title deed is a necessary legal document that shows property ownership. The receiver or their authorized representative must acquire the revised title deed from the DLD.

Benefits of Gifting Property in Dubai

Gifting property in Dubai has many benefits for both the giver and the receiver. Here are some of the most significant advantages of gifting property in Dubai:

1. Avoidance of Inheritance Tax

One of the most significant advantages of gifting property in Dubai is that it might aid in the avoidance of inheritance tax. Inheritance tax is a tax charged on the transfer of assets following the death of a person. The tax rate can be substantial, reducing the value of the property being passed down to the next generation. By gifting property in Dubai, the giver can avoid inheritance tax and transfer the property to loved ones tax-free.

2. Simplification of Estate Planning

Gifting real estate in Dubai can also help with estate planning. Estate planning is the process of preparing assets for transfer after a person’s death. The giver can simplify the estate planning procedure and ensure that their assets be handed to their loved ones without any legal difficulties by gifting property during their lifetime.

3. Ease of Transfer of Ownership

Gifting property in Dubai can also facilitate ownership transfer. Transferring ownership by gifting is a considerably simpler and faster process than transferring ownership through a will or probate.

4. Cost Savings

Gifting property in Dubai can also save money. The transfer fees for gifting a property in Dubai are cheaper than those for selling a property. The cost of selling a home comprises real estate agent commissions, marketing charges, and other expenses. The sender can avoid these expenditures and deliver a more meaningful gift to their loved ones by gifting a property.

5. Emotional Value

Gifting real estate in Dubai can also have emotional value. It can be a meaningful expression of love and appreciation, strengthening the link between the donor and the receiver. Gifting a property can also offer the receiver a sense of security, knowing that they have a significant asset to call their own.

Conclusion

In Dubai, gifting property is a legal process that takes great thought and planning. It entails a number of legal steps that must be followed precisely in order to ensure a smooth transfer of ownership. Before gifting a property in Dubai, it is critical to acquire legal counsel to understand the legal requirements and tax ramifications of the gift. Gifting property in Dubai can be a profitable investment. It can help to reduce inheritance tax and make ownership transfers easier. However, before gifting a property in Dubai, it is critical to execute the legal formalities carefully and get legal guidance. Gifting property in Dubai can be a simple and uncomplicated process with careful planning and legal counsel.