Gifted property is a quite popular and well-known concept in Dubai. This is due to an exemption from the fixed 4 % transfer fee on all kinds of gifted property transfers in Dubai. Lawyers in Dubai or Dubai lawyers can help you understanding the practical implementations. Dubai real estate and rules can be better managed by lawyers in Dubai or Dubai law firms. These lawyers have proved their professional worth since the existence and formation of UAE. Lets go back t topic.
Advantages of Cost Saving
Therefore, most people want to take advantage of the benefits and save on costs. Seek the help of a Property lawyer in Dubai to avail the maximum benefits from the Law.
Based on Tax Laws
As per the tax laws, gift transfers are possible between first-degree relatives in Dubai. Any transfers between them can be regarded as gift transfers that get exemptions. The transfer ownership change takes place at the Dubai Land Department DLD.
Based on Islamic Laws
As per Islamic law, there is a term given to the gifting of property as Hiba. Hiba is an Arabic word that means gift or present.
HIBA
The term Hiba is widely used to describe a present or a gift. Nevertheless, there are still some guidelines, and procedures that must be followed while making a gift transfer.
Gifting Property in Dubai is a common practice. Especially for inheritance and success purposes, it is widely used in Dubai. It is permissible under Sharia law. According to the Sharia laws, gift transfer is made easier in the United Arab Emirates.
Process of gifting property
In the process of Gifting property, there is a need to change the name over the title deed. It is much needed because now another family member will have the property ownership and rights.
Inheritance Law
According to the inheritance law, there is a specification to secure the property by transferring title deeds. Nonetheless, the offshore companies or even the families operating in Dubai are given properties for registration.
Insignificant transfer fee 0.125 percent is also charged when transfer is made. The gift transfer rate of 0.125 percent is accused over the property’s total value. This is such a small amount that people prefer gift transfers to save their expenses.
Furthermore, an individual who owns any real estate property in Dubai can easily gift it to his family members or first-degree relatives.
It is simply done by paying a standard gift transfer fee of 0.125 percent of the property’s total worth. The changes must not be less than AED 2000.
Reduced charges
This reduced the charge permits and the transfer I considered to be free Moreover, at the time of transfer the first-degree relatives need not worry about the financial ramifications.
Eligibility Criteria
There is an eligibility criterion for gifting property in Dubai. The law of the land describes the eligibility of a family member or first-degree relatives.
According to it, parents, children, and spouses are termed as first-degree relatives. They are eligible for gifting property in Dubai.
Besides, as per the recent changes in the law, the DLD no longer permits the gift transfer of properties among siblings. Therefore, as per the regulation, only close family members can transfer the property in the UAE.
Additionally, in this, there are options about who will be handling the property which must be cleared at the time. It is needed to ensure that your aspirations and wishes are honored. The procedure is carried out according to the desires and preferences of the choice.
Muslims can avoid Sharia Law
Moreover, this gifting property is also an alternative to avoid the distribution as per the Sharia law shortly.
In case, there is no will, gifting property is a viable option if you don’t want the distribution of wealth according to Islamic law. Another benefit attached to it is that it makes succession planning a whole lot simpler.
For example, a spouse can gift property to the wife to prevent any transfer of property to the siblings once a person passes away. The spouse might be exempted from any inheritance as a result of a divorce settlement.
The process of gift transfer needs to be followed. In this article, we have discussed the whole process in depth for a better understanding.
From the transfer of a property, the title Deed is a compulsion. Gifting an off-plan apartment in Dubai in the name of a gift transfer is not possible.
DLD doesn’t permit it whatsoever. Moreover, it is visible to have an affection plan. It is an official site plan that is certified by DLD.
NOC is needed
Alongside this, there is a need for a No Objection Certificate (NOC). It is essential to type of sale or purchase any property including gift transfers in Dubai. NOC must be provided by the developer.
It is provided to certify that there are no objections over the ownership transfer. Besides, it also confirms that there are no unpaid bills attached to the property.
Transfer Fee
The transfer fee of 0.125 percent of the property’s worth is paid to the concerned authorities. For the normal property transfer, it is 4 percent. In gift transfer, there is leverage, and thus, the nominal transfer fee is charged. The transfer fee is paid to the Dubai Land Department DLD at the time of transfer.
The title is transferred in 2 to 4 weeks. The entire process will take up to 1 month. For the gift transfer property, all stakeholders must be present during the proceedings.
The procedure of gift transfer is lengthy and complicated. Some regulations and laws must be adhered to. It is only possible with the help of a professional property lawyer in Dubai.
On paper, the procedure appears to be very straightforward and without any hassle. The laws of gift transfer of pretty in Dubai involve the donor, done, and other stakeholders which must be dealt with carefully.
The well-versed property lawyer in Dubai will carry out the process with due diligence. He will ensure compliance and also safeguard the interest of the parties involved.
Besides, property lawyers in Dubai can provide legal advice and legal support during the whole procedure which will benefit you. They will ensure the documentation is done timely and accurately.
