Do I need to pay a fee to transfer property to family members?

Q: 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?

A: IT is assumed that you own a property in Dubai and intend to transfer it 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.

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 per cent 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.”

On khalejtimes.com Read the full advice: bit.ly/legalviewfees