This has come because everyone wants to get an exemption from the standard transfer fee of 4 percent. Once you gift property in Dubai you get levied on all the property transfers taking place anywhere in Dubai. Gifting property in Dubai is gaining immense popularity and widespread across the Country. People tend to save their time, money, and lengthy transfer procedures. However, some conditions must be met before gifting a property. As per the specifications, gift transfers in Dubai can only happen between first-degree relatives. The first-degree relatives include spouses, children, and parents. Any transfer between relatives can be termed as a gift transfer in Dubai. Of course, lawyers in Dubai can help you better learning this about the system. Let’s explore more.
Gift transfer in Dubai
It is quite a prevalent idea and is widely practiced as well. This practical approach is used especially for succession and inheritance purposes. In UAE, the main change required is regarding the change of the name on the title deed. This is due to the fact that ownership will change now. Nonetheless, this also allows the individual to protect from specifications related to inheritance laws in Dubai. Lawyers in Dubai are very famous for hiring to acquire such knowledge. But make sure these lawyers must be hired from good Law Firms. Dubai Law Firms can provide good lawyers/attorneys.
The main reason behind the wide popularity is the standard fee of gift transfers in Dubai. This is because there is a 4 percent flat transfer fee which must be paid to the relevant authorities in Dubai. The concerned authority that will receive the payment is the Dubai Land Department DLD. It is normally paid at the time of transfer. On gift transfers in Dubai, usually, this standard fee of 4 percent is not charged. There is an exemption for it. However, a very small transfer fee of 0.125 percent is charged.
It is easy and convenient to gift your property to your family members in the first degree by just paying a 0.125 percent fee. A very small amount is paid on transfer of the property only between first-degree relatives. The property owners don’t need to think much about the financial costs associated with the property transfers in Dubai. There are very few financial ramifications. The parents, children, and spouse are termed as first degree relatives. They are eligible for gift transfers in Dubai. Further if any case study is required then please contact attorneys in Dubai, but UAE Nationals.
The recent amendments, have brought few changes in the laws. According to the modifications, the DLD no longer allows the siblings to qualify for gift transfers in Dubai. DLD no longer entertains the transfer among the siblings as a gift transfer. However, you can gift your property in UAE to your close family members. There is an option regarding who will handle the property in the long run.
Besides, it is entertaining to guarantee that your wishes are fulfilled and honored. Therefore, you can transfer your property to your family member of your choice. Nevertheless, the gift transfer in Dubai is a lucrative way to prevent the distribution of wealth as per sharia law. In case there is no will, the property will be transferred following Sharia law after the demise of a person.
Therefore the gifting method is a wiser option for success planning. This makes it a whole lot easier and simpler. In addition, the gifting property of an offshore company is also possible. This will prevent unanticipated inheritance problems that may arise. The basic benefit of gifting an offshore business is that you can manage and own it.
This is also a way to reduce your liability. It protects your assets and property and the distribution is done according to the desires of a person. There are advantages of tax reduction attached to the gift transfers in Dubai. For the gift transfer in Dubai, the title deed is a compulsion. The property should have a title deed for the gift transfer to take place. In case, the title deed is attached with an affection plan, this is an added advantage. Affection plan is a valuation certification and is considered to be an official site plan.
The valuation of the property is established by using the valuation certification. Alongside this, there is a need for a No Objection Certificate (NOC). It is a document that is needed for any pretty trading in Dubai. It must be provided by the developer to certify that there are no objections attached to the ownership transfers. Besides, it also ascertains that all bills and obligations are paid. There is a transfer cost of 0.125 percent which is paid at the time of transfer. Dubai Land Department DLD will receive the amount. The cost of Gift transfers in Dubai is significantly lower than the normal transfers.
The gift transfers in Dubai may take approximately 2 to 3 weeks to complete. The entire procedure is quite fast and swift. However, it is important that at the time of transfer, all the parties must be present. This saves your time, finances, and resources. It is advisable to utilize the power of attorney in gift transfers in Dubai. Besides, it will also save the person from inconvenience and paperwork is also reduced. Once the trustee gets the papers and the fee is paid, the transaction will proceed. The trustee’s office will execute the property transfer in Dubai. It will result in the new title deed to be issued. Now the procedure will be done officially. It will own the property after issuing a new title deed.
