Property gifting in Dubai (hiba) : donation transfer, fees and documentation

Gift transfers (commonly called hiba) allow owners in Dubai to transfer real estate to relatives at significantly lower costs than a standard sale. Beyond cost optimisation, gifting is a practical succession planning tool to avoid default application of Sharia rules and simplify asset devolution. This guide outlines the framework, step by step process, required documents and indicative fees.

What is a gift transfer?

A gift transfer is a voluntary, no consideration transfer of title from donor to donee (in whole or in part) processed before the Dubai Land Department (DLD). In practice, gifting largely concerns intrafamily transfers (spouses, parents/children) to pre-appoint beneficiaries and streamline future succession. For certain non immediate relatives, a different fee schedule may apply.

Key benefits

• Lower fees : compared to the 4% transfer fee on sales, gifts benefit from a reduced rate (significantly lower proportional duty plus admin and trustee fees).
• Succession planning : proactively assigns property to loved ones to avoid default Sharia allocation or contentious co‑ownership among heirs.
• Efficiency : well‑prepared files are processed swiftly by registration trustees.

Typical eligibility

The DLD sets eligibility rules based on kinship and the transaction profile (individuals, companies or combined). Indicatively :

• Immediate family : transfers between parents and children and between spouses generally qualify for the favourable gift regime (sibling‑to‑sibling transfers typically do not).
• Companies : structures involving LLC/offshore/free‑zone entities are possible with corporate documents (trade licence, incorporation/incumbency/good‑standing certificates) and proper authorisations (Board Resolution/POA).

Step-by-step process

1. Title check : property must have a valid Title Deed (off‑plan units are not eligible for gifting).
2. Obtain Affection Plan and DLD valuation certificate (forms the basis for fee calculation).
3. Secure NOC from developer : confirms no arrears and consent to transfer.
4. Gather civil‑status documents (individuals) : passports/visas/Emirates ID, marriage certificate (spouses), birth certificates (parent/child link), with legalisation and Arabic translation (MOFA, embassy, etc.) if issued abroad.
5. Execution : parties (or agent under Power of Attorney) appear before the registration trustee, pay fees, and obtain a new Title Deed in the donee’s name.

Fees and charges

Gifts attract a reduced transfer duty (well below the 4% sale rate). Add administrative fees, trustee fees (fixed band by value) and potential translation/legalisation costs. Always confirm the current DLD/trustee schedule for precise amounts.

Practical pitfalls

• No encumbrances : mortgaged or disputed properties cannot be freely gifted.
• Co‑ownership : in jointly‑owned or strata property, secure co‑owner consents and define how shares will transfer.
• Estate strategy : gifting “pre‑allocates” assets, align with overall family balance (other assets, equality among children, non‑UAE tax considerations where relevant).
• Documentation : missing civil‑status legalisations or NOC issues are the most common sources of delay.

Alternatives and add-ons

• Wills (DIFC/ADJD) : to organise other assets (bank accounts, shares, portfolios) and minor guardianship.
• Holding structures : some owners use offshore/free‑zone companies to hold property and facilitate inter‑generational transfer of shares (requires careful legal structuring).

Dubai gift transfers are a powerful estate-planning lever : they reduce costs, simplify succession, and secure strategic assets (family home, rental property) for the intended beneficiary. Professional support helps anticipate paperwork, choose the optimal structure (intrafamily vs corporate) and execute the transfer smoothly with the DLD.

Our lawyers, who are experts in inheritence law, are available to answer all your questions and provide advice. We offer face-to-face meetings or videoconferencing. You can make an appointment directly online at https://www.agn-avocats.fr/.

AGN AVOCATS – Inheritance Law
contact@agn-avocats.fr
09 72 34 24 72