Gifting Property in Dubai: Rules & Reduced Transfer Fees

Transferring property may seem like an easy task; however, many families often struggle because they are unaware of the proper rules, regulations, and potential reductions in transfer fees. And all of this leads to unnecessary costs or even invalid transfers. Therefore, understanding the regulations for property gift transfer in Dubai is essential. The Dubai Land Department (DLD) provides a structured framework that ensures every property gift transfer is legally valid, protected, and enforceable.

In this guide, we’ll walk you through the key steps, regulations, and best practices to make property gifting in Dubai seamless and worry-free.

Eligibility & Legal Requirements

Relationship Requirement: Only the first-degree relatives, like parents, children, and spouses, are subject to the gift transfer of property in Dubai.

Ownership Status: Every donor must hold a valid title deed and full ownership of the property. Encumbered or mortgaged properties generally require clearance before gifting.

Capacity of Parties: Both donor and recipient must be legally eligible (18 years and above). If the recipient is a minor, a legal guardian must represent them with prior DLD approval.

Residency: Both UAE nationals and residents with valid Emirates IDs can deal in gifting. Non-residents may also receive property, provided the property is located in designated freehold zones and they meet the required documentation.

Proof of Relation: All legal documents, such as marriage or birth certificates, are mandatory. 

Rules

Other than eligibility, the DLD also enforces a set of procedural rules that safeguard the integrity of gifting transactions:

Valuation Certificate Is Mandatory

Before any application, property valuation in Dubai​ is mandatory by a DLD-approved valuer. This valuation certificate marks the current market value, and it serves as the basis for calculating the reduced transfer fee of 0.125%.

Developer’s No-Objection Certificate (NOC)

Every owner who has a property in a freehold zone must obtain an official NOC from the developer. This confirms there are no debts, mortgages, or violations with respect to the property.

Power of Attorney (If Applicable)

If, in any case, either the donor or the recipient cannot attend in person, a notarized and UAE-attested Power of Attorney must authorize a representative to act on their behalf.

Consent for Joint Ownership Transfers

When a property has multiple owners, written consent from all co-owners becomes mandatory. This is done to prevent any sort of disputes and ensure the transfer is entirely valid.

Attested Translations for Foreign Documents

And, if any document about proof of relationship is issued from outside, it must be translated into Arabic and attested by the UAE Ministry of Foreign Affairs before submission.

Reduced Transfer Fees for Property Gifting

One of the advantages of gifting property in Dubai is the reduced transfer fee compared to regular sales. Instead of the standard 4% transfer fee on property transactions, the Dubai Land Department (DLD) charges only 0.125% of the total property valuation when transferring between first-degree relatives. This reduction helps the families maintain their wealth without giving any heavy transaction costs.

However, alongside the 0.125% fee, there are a few additional charges. The DLD applies a minimum fee of AED 2,000, even if the calculated percentage is lower. A title deed issuance fee of AED 250 also applies, while map fees vary. AED 100 for plots outside the Dubai Municipality and AED 225 for those within. Administrative charges also include knowledge and innovation fees of AED 10 each per drawing. And all the transfers must be done through a trustee service partner, with fees set at AED 2,000 + VAT for properties under AED 2 million and AED 4,000 + VAT for those above.

Example: If a parent gifts a property worth AED 1,500,000 to their child, the 0.125% transfer fee equals AED 1,875. Since the minimum threshold is AED 2,000, the payable amount will be AED 2,000. In addition, the parent or child must pay AED 250 for the new title deed and AED 2,000 + VAT as the trustee fee, along with minor drawing/knowledge fees.

Step-by-Step Process of Gifting a Property in Dubai

Obtain Property Valuation Certificate

Visit a DLD-approved Real Estate Service center or a property consultant in Dubai to request a valuation. This report sets the base for all transfer fees.

Prepare Required Documents

Gather the title deed, Emirates IDs, passports, proof of relationship, and the developer’s NOC. For international documents, check if they are translated and attested. Many families also seek guidance from a property consultant in Dubai to double-check that all documents are correct and complete before submission.

Submit Gift Registration Application

Apply via the DLD’s Gift Registration service or through a trustee Center. Applications may be made by the donor, recipient, or a legal representative with a valid POA.

Pay Applicable Fees

Pay the 0.125% transfer fee, along with all other additionally required fees, such as title deed issuance, etc.

Verification and Review by DLD

The DLD verifies all documents, checks eligibility, and confirms the valuation certificate before processing the transfer.

Issuance of New Title Deed

Once approved, the recipient receives a new title deed in their name. The transaction typically takes 25–30 minutes to finalize once documents are in order.

Common Mistakes to Avoid

• Incomplete Proof of Relationship: Submitting a birth or marriage certificate without proper attestation or translation will lead to rejection.
• Uncleared Developer Dues: Any unpaid service charges or instalments will block the issuance of an NOC, therefore preventing transfer.
• Missing Valuation Certificate: If you skip the valuation step means the DLD cannot calculate fees, and the application cannot proceed further.
• Ignoring Joint Ownership Requirements: Those transfers that require the involvement of multiple owners require strictly written consent from each owner.

Conclusion

Abiding by all the requirements for property gift transfer in Dubai helps families to enjoy significant savings compared to standard property sales. However, compliance with certain established rules at every step is needed at all costs. To make this process a bit easier, it's advised to have expert guidance. At Archers MENA, our team of certified consultants specializes in providing accurate property valuations and ensuring complete adherence to current regulatory requirements. Contact us at +971 58 557 8987 today for more information! 

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