Property gifting in Dubai has been a widely practiced custom, particularly among family members, which allows individuals to transfer property ownership without paying for it. This operation is subject to particular laws and instructions given by the Dubai Land Department (DLD). The property-gifting process may be initiated by one family member transferring the ownership of their real estate to another family member, such as from parents to children or between husbands and wives. However, property giving in Dubai can only be legally done if the involved individuals duly observe the prescribed formalities of the law and the title deed is duly registered.
The information that will be provided in this article includes the background of the process of property gifting in Dubai, what documents are necessary, the costs involved, and lastly the laws of property transfers.

Understanding Property Gifting in Dubai
The gift of property is basically the action of transferring property ownership with no money being given in return. Estate planning, bequeathing property, or simply the transmission of one’s property to a loved one are the most common purposes of gifting the property. The granting of property gifts to first-degree relatives, like parents, children, and spouses, is permitted by the Dubai government.
Even though no funds are exchanged during the property gifting process, the process is still formal, and thus the DLD’s registration is required. The transaction must also comply with the property law of Dubai, and certain fees and documents must be presented to finalize the transfer.

Eligibility for Property Gifting
Gifting property in Dubai is usually limited to first-degree relatives. The term immediate family means the following:

• Parents and children.
• Spouses.

Property gifting may be prohibited for non-family members or extended relatives and may need to be considered in formal sales or inheritance transfers.

Documents Required for Property Gifting
The following documents are different from those required by the Dubai Land Department for the successful completion of the property gifting process:

• Title Deed (Original): This document is proof of property ownership and is also required for the transfer of the deed to the new owner.
• Identification Documents:
  • Passports of both the donor (the person giving the property as a gift) and the recipient (the person receiving the property) need to be provided.
  • Copies of Emirate ID cards for those who reside in the UAE.
• Proof of Relationship: Documents demonstrating the relationship, such as the marriage certificate or the birth certificate may be required to verify eligibility for gifting between family members.
• Certificate of No Objection (C.N.O.): For mortgages that are pending clearance, the donor should obtain a C.N.O. from the bank, confirming that there are no financial obligations on the property.
• Gift Affidavit: The donor needs to sign an affidavit stating that he/she is voluntarily giving the property and that no payment is involved.
• Dubai Land Department Application Form: The application form for property gifting must be filled out and submitted to the DLD.

Steps in the Property Gifting Process
The process of gifting property in Dubai entails a number of important stages, all of which must be recorded legally at the Dubai Land Department.

1. Obtain the No Objection Certificate (NOC)
   In case the property is mortgaged, the immediate step would be to obtain an NOC from the lender (the bank) that would corroborate that the property is without any financial liabilities or that the mortgage would be liquidated completely at the time of transfer. The NOC is an essential component for the commencement of the gifting process.
2. Submit the Required Documents
   After the NOC is acquired (if needed), both the donor and the recipient are supposed to submit the necessary documents along with proof of their association with each other, genuine title deed, identification documents, and the affidavit of gifting, to the Dubai Land Department.
3. Pay the Fees
   The property gifting does not involve any monetary exchange; nevertheless, the acquisition of administrative and registration fees is nonetheless required to be made in order to finish the process. The following are the fees:
   • Gifting Registration Fee: Contrary to the common property transaction transfer fee, which is 4%, the gift-making fee is actually 0.125% of the property’s market value.
   • Administrative Fees: The DLD levies administrative charges for rendering the service, with amounts differing according to the nature and value of the real estate.
4. Property Valuation
   On the part of the DLD, sometimes it could be a requirement for an assessment to be done using an official property valuation to identify the gifted property, as well as its current market price. This task generally is a responsibility of a duly approved valuer, and the costs are usually borne by the donor.
5. Finalize the Transfer at the DLD
   The sending and receiving parties are to appear at the DLD Trustee Office to finalize the transfer of ownership of the property. The DLD will examine the submitted documents, confirm that all fees are paid, and check whether it complies with Dubai’s property laws. If all checks are fine, the agency will issue a new title deed in the name of the receiver.

Property Gifting for Mortgaged Properties
When mortgaged properties are involved in gifting, the process is more complicated in Dubai since either the mortgage must be entirely paid before the transfer, or the person inheriting such property must take over the loan.

• Steps for Mortgaged Properties
  • The Donor Gets NOC from the Bank: The donor must obtain a no-objection certificate from the lender confirming that the outstanding loan can be paid off or transferred.
  • Mortgage Transfer: In some cases, the recipient may need to secure a mortgage to take over the existing loan. The bank must endorse this arrangement, and new terms may need to be agreed upon.

Key Elements to Consider When Gifting Property

• Evidence of Relationship
  The most important prerequisite for making a property gift is proving the donor-recipient familial relationship. Failure to provide similar documented evidence may lead to rejection of the gifting application by the DLD.
• Cost and Tax Implications
  All the administrative fees and registration expenses are applicable even though property gifting is not a sale. The fee is equal to 0.125% of the market value of the property, which is lower than the regular property transfer costs; however, it needs to be included in the total amount of expenses associated with it.
• Restrictions on Transfers to Non-Direct Relatives
  Non-first-degree relatives are not eligible for gifting property. In addition, if the intended recipient is a more distant relative or non-relative, the transfer may not be considered a gift under Dubai law, and therefore, the formal sale or inheritance process would apply.

Benefits of Property Gifting

• Gift Tax-Free: Nowhere in the world is the gift of a piece of property so unattached to tax as in Dubai. So, a parent can give it to a child without difficulty.
• Effortless Transition of Ownership: The donation procedure is usually more straightforward and thus less expensive than the property sale process, especially for familial transfers.
• Estate Planning: The alienation of property may be part of a wider estate planning action, allowing the beginning of a distribution process of the family’s assets by an individual’s decision, thus preventing any inheritance disputes.

Conclusion
The process of gifting property in Dubai is relatively easy; however, it requires adherence to the laws set out by the Dubai Land Department. Regardless of whether the gift of the property is to a child, spouse, or parent, it is important to prepare the necessary documents, get clarity on the fees involved, and comply with legal procedures. The DLD can be contacted, and all received instructions can be confidently followed, which would lead to the cost-effective and legally compliant transfer of property ownership to family members.
Learning the procedure of gifting can aid property owners in working on their assets properly, avoiding the risks of family quarrels. The prevention of unnecessary troubles makes the scheme of redistribution of the family property an epitome of estate planning.