Many Dubai property owners are curious about the costs and formalities involved in transferring ownership to a family member. In this blog post, we’ll answer some of the most common concerns people have when thinking about giving family members ownership of a home in Dubai. This blog is meant to educate everyone involved in the real estate investment process, from AZCO Real Estate Brokers LLC staff to prospective investors.
Is It Possible to Transfer Property Ownership to Family Members in Dubai?
Absolutely, it is possible. Under Dubai Property Laws, property owners can easily transfer their properties to any other member of their immediate family. This appears to be a very lucrative option for investors who want to consolidate their investment properties and plan their future in Dubai. All the regions of Dubai that allow foreign property ownership also allow ownership transfer to family members which mainly include parents, spouses, children, and siblings after formal approval by DLD (Dubai Land Department). In order to continue, property owners must get all necessary permits and also conform to all the relevant laws. To facilitate a trouble-free change of ownership, AZCO Real Estate Brokers LLC is here to help.
Are There Any Restrictions on The Type of Properties That Can Be Transferred?
The scope of properties eligible for transfer to family members is quite broad in Dubai. Residential properties, villas, apartments, and plots of land can all be transferred, given they meet the regulatory criteria. However, it is crucial to verify that the property is located in areas where foreign ownership is permitted. By adhering to the guidelines set by the Dubai Land Department, you can successfully transfer various types of properties to your immediate family members. Our team of experts at AZCO Real Estate Brokers LLC can provide you with the necessary guidance and support throughout the transfer process.
What Is the Process of Transferring Property Ownership in Dubai?
The process of transferring property ownership involves several steps:
Step 1: Obtain a No Objection Certificate (NOC) from the developer or the property’s master developer.
Step 2: Prepare the necessary documents, including the original title deed, valid identification documents of both parties (owner and recipient), and the NOC.
Step 3: Visit the Dubai Land Department (DLD) or appoint a registered trustee to initiate the transfer process.
Step 4: Pay the applicable fees and taxes (discussed in the subsequent questions).
Step 5: Once all the formalities are completed, the property will be officially transferred to the family member.
- What Are the Fees Involved in Transferring Property Ownership in Dubai?
The transfer of property ownership in Dubai incurs several fees, including:
Transfer Fee: This fee is generally a percentage of the property’s sale price and must be paid to the Dubai Land Department.
b) Trustee Fee: If a registered trustee is involved in the transfer process, they may charge a fee for their services.
c) NOC Fee: The developer or master developer may charge a fee for issuing the No Objection Certificate.
d) Administration Fee: There may be additional administrative charges associated with the transfer process.
- Are There Any Exemptions or Reduced Fees for Transferring Property Within the Family?
As of my knowledge cutoff date is in September 2021, and there were no specific exemptions or reduced fees for transferring property within the family. However, it’s essential to check for any updates or changes in the relevant regulations with the Dubai Land Department or consult with a qualified real estate expert.
- Are There Any Taxes Applicable to Property Transfer Within the Family?
In Dubai, there is no capital gains tax on property transfers. However, a 4% property registration fee (also known as the DLD fee) is applicable based on the property’s value. This fee is typically split equally between the buyer and the seller.
- Can I Transfer My Property to Distant Relatives or Friends?
As of the information available up to September 2021, property transfers to distant relatives or friends are not permitted without specific approval from the Dubai Land Department. Generally, property transfers are restricted to immediate family members.
- Is It Necessary to Involve a Real Estate Agent or Broker in The Transfer Process?
Although it is not compulsory, however partnering with a registered real estate broker and seeking professional advice can stimulate the entire process of property ownership and management. Also, you can rest assured that they will handle all the legal formalities rightly. At AZCO Real Estate Brokers LLC, our experienced agents can assist you throughout the transfer process and provide expert guidance.
Transferring property ownership to family members in Dubai is possible and can be a smooth process if all the necessary steps and fees are taken into account. As an employee, potential investor, or website visitor of AZCO Real Estate Brokers LLC, we hope this blog has answered your most commonly asked questions about property transfer. For personalized assistance and expert advice, feel free to reach out to our team of qualified real estate professionals.
