I am a property owner in the UAE. Would I need to pay any tax or fees to transfer the property to a family member?
Pursuant to your queries, it is assumed that you own a property in Dubai and intend to transfer the same to your first-degree family members. Therefore, the provisions of Executive Council Resolution No. 30 of 2013 approving Fees of the Land Department (the ‘Dubai Land Department Fees Resolution of 2013’) are applicable.
The Dubai Land Department (DLD) only charges fees and not tax with regards to registration and transfer of properties. This is in accordance with Article 2 of the Dubai Land Department Fees Resolution of 2013, which states: “By virtue of this Resolution, the Fees for registration of Real Property Dispositions in the Real Property Register, including those related to completed, under-construction, or off plan real property, as well as the Fees for services provided by the Department, as set out in Table (1) attached hereto, are approved.”
An individual who owns a property in Dubai may transfer the same to his or her first-degree family members in the form of a gift by paying DLD a fee of 0.125% of the value of the property. Such fees will not be less than Dh2,000.
Further, Article 3(5) of the Dubai Land Department Fees Resolution of 2013 states that “When paying the Fees prescribed by Article (2) of this Resolution, the following will apply:
Unless agreed otherwise, the Fees for registering contracts for the use and development of the land of another person (Musataha), contracts transferring the share of real property belonging to an heir to the other heirs (Takharuj), gifts, wills, mortgages, debt conversions, family endowments (Family Waqf), and registering the rights of the heirs of tenants, will be paid by the person to whom the rights are transferred.”
Based on the aforementioned provisions of law, you may gift a property to first-degree family members such as parents, spouse or children by paying 0.125 per cent of the value of the property or Dh2,000 (whichever is higher) to the DLD.
However, if you intend to sell the property to your first-degree family members or an individual/s or corporates, then you need to pay 4 per cent of the value of the sale contract.
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