At Vardhman Realty, we have extensive experience in advising on gifting property – where you can transfer your parcel via a process called “Gift Transfer” at the Dubai Land Department. Gift transfers are popular in Dubai for an inheritance, tax structuring, and succession purposes,mainly as Sharia Law prevails in the region.
Our experts will dedicateample time to learn about your requirements, recommend the best options, and thoroughly create the necessary documentation.
In the UAE, gifting property primarily refers to the addition or deletion of a name from a title deed, resulting in the property's ownership being transferred to the name of another. The purpose is to protect the property from inheritance laws in the area. Either inside families or to offshore firms, properties are gifted.
You can avoid future property inheritance concerns in the UAE by using the gifting process. This eliminates the need for Sharia law distribution, but it also allows you to choose the next title holder of your property, streamlining the inheritance/succession procedure.
You are also assisting your chosen beneficiary in establishing ownership in advance by gifting your property now - something that can be difficult and complicated if you die intestate or suddenly.
In addition, completing a gift transfer rather than a sale and purchase transfer saves you money on transfer fees. In Dubai, for example, a sale and purchase transfer fee equal to 4% of the sale price is charged. The gift transfer charge, on the other hand, is only 0.125 percent of the deemed property value, or AED 2,000.
As a result, transferring a present to your spouse or other immediate family members incurs a substantially lower transfer cost, whilst transferring a gift to anybody else incurs the higher standard transfer fee of 4%.
On paper, the gift transfer procedure appears to be straightforward. It can, however, become a time-consuming and complicated process, especially if the property owner (donor) or the beneficiary (donee) is unable to complete or attend all of the requisite formalities to effectuate the gift transfer.
It will benefit you to have a legal expert representing and/or counseling you throughout the process in this jurisdiction.Vardhman Realty can assist you with making a gift transfer, whether it's to your children, spouse, parents, or business (and vice versa). If you are interested in effectively protecting your estate, please contact a member of Vardhman Realty's private client team to discuss the option of gifting.