Property gifting or donation of a property (also known as “Hiba” in Arabic) is a voluntary transfer of a real estate to your family member(s) or to your company, without consideration. Government fees are significantly less for property gifting to family members. For instance, the Dubai Land Department transfer fee for property gifting is 0.125% as opposed to 4% that is applicable in a property sale-purchase transfer.
Under current regulations, you can gift your property to your first-degree family that includes children, parents and spouses. Moreover, a property can be transferred as a gift from an individual to his or her company (or vice versa), provided such company is allowed to own a property under the laws.
Although on the surface property gifting process may look like a simple task, in reality, it is a complex process that involves numerous steps as well as certain legal issues for both donors and receivers.
Besides, if you are gifting property to children before they reach a legal age under UAE laws (i.e. 21 years old), then you need to take into consideration guardianship laws and their implications. Thus it is of utmost importance to get sound legal advice from experts before gifting property to children.
We specialize in property gifting services and offer professional assistance for:
- Gifting Property to Children
- Gifting Property to Parents
- Gifting Property Between Husband and Wife
- Gifting Property to Company (or vice versa)
We can advise you on the legal issues and consequences related to gifting property to family members or to your company.
Moreover, we can handle the complete gifting process of your property on your behalf. Our property gift transfer services include:
- Preparing a gift deed between the donor(s) and the receiver(s);
- Dealing with and getting all necessary approvals from authorities;
- Applying for all prerequisite documents such as Affections Plans, Value Estimation Certificates, Site Plans, etc.;
- Facilitating payments of various fees, e.g. to the land department, facilities management, developer;
- Ensuring that all taxes, fees and costs are correctly calculated;
- Legalization of relevant documents to establish a kinship between the donor and the receiver;
- Getting all necessary no objection certificates from developers and facilities management companies;
- Transferring utilities (water, electricity, gas and air cooling);
- Representation before the Land Department at final transfer of ownership;
- Obtaining a new title deed after the gift transfer;
Although on the surface gifting property to family may seem not complicated, in reality it can be rather lengthy and could take up to 6 weeks to complete it. So, in the event that you (as a donor and/or a beneficiary) are not aware of the process of property gifting or not able to attend the necessary formalities personally, you can always appoint a legal representatives specialized in this filed, such as our firm, who would handle the whole process on your behalf.