Gifting Property in Dubai: the 0.125% Transfer That Most Owners Do Not Know Exists
An owner wants to put an apartment into their spouse's name, or add a child to the title, or move a property into a company they wholly own. They assume it means selling it to them, and they budget the 4% Dubai Land Department transfer fee.
It usually does not. Dubai recognises a gift transfer, known as Hiba, and the registration fee on a qualifying gift is 0.125% of the property value rather than 4%.
On a AED 3 million apartment, that is the difference between AED 120,000 and AED 3,750.
Who Qualifies
The reduced fee applies to transfers between first-degree relatives. In practice the Land Department treats that as:
- Spouse to spouse
- Parent to child
- Child to parent
Siblings, cousins, in-laws and friends do not qualify. A transfer to a sibling is treated as a sale and attracts the standard 4%.
A transfer to a company wholly owned by the same individual is also commonly processed as a gift transfer, which is how owners restructure into a holding entity without paying full transfer fees. The rules on this are specific and the Land Department applies them carefully, so confirm the position for your exact structure before relying on it.
What It Costs
| Item | Typical amount |
| DLD gift transfer fee | 0.125% of the property value |
| Valuation certificate | around AED 4,000, depending on property type |
| Title deed issuance | AED 250 plus knowledge and innovation fees |
| Trustee office fee | around AED 2,000 to 4,000 plus VAT |
| Developer NOC, where required | AED 500 to 5,000 plus VAT |
Note that the 0.125% is applied to the Land Department's assessed value, not to a nominal figure the parties choose. A valuation certificate is part of the process precisely so that the fee cannot be avoided by declaring a gift of one dirham.
The Documents Required
Expect to produce:
- Original title deed.
- Passports and Emirates ID for both parties.
- Proof of relationship: marriage certificate, or birth certificate showing the parent-child link.
- Attestation and legal translation of any document issued outside the UAE. This is the step that takes the time.
- Valuation certificate from the Land Department.
- Developer no objection certificate, where the community requires one.
- Mortgage discharge, if the property is mortgaged.
The relationship documents catch people out. A marriage certificate issued abroad needs the full legalisation chain and an Arabic translation, and that can take weeks.
The Mortgage Complication
A mortgaged property generally cannot be gifted while the mortgage stands. Either the loan is settled and the mortgage released first, or the receiving party arranges their own financing and the bank agrees to the arrangement.
Banks vary in how they treat this. Ask the lender before you plan the transfer, because a gift transfer application that arrives with a live mortgage on the title goes nowhere.
When a Gift Transfer Is the Right Tool
Estate planning during your lifetime. Moving property to children while alive avoids the process that follows a death, though it also means giving up control of the asset.
Consolidating ownership between spouses, for example after joint purchase arrangements change.
Restructuring into a wholly owned company, where the structure genuinely earns its cost.
When It Is Not
As a substitute for a will. Gifting away everything to avoid inheritance questions creates its own problems, not least that the gift is irrevocable. A registered will is usually the better instrument. See our guide to wills and inheritance for Dubai property owners.
Where the relationship does not qualify. A "gift" to a sibling or a friend is a sale in the Land Department's eyes and will be assessed at 4%.
Where the real intent is a sale. Structuring a genuine sale as a gift to avoid fees is not a clever technique. It is a misrepresentation to the registrar.
Frequently Asked Questions
What is a gift transfer or Hiba in Dubai property?
It is a transfer of property between first-degree relatives, registered at a reduced Dubai Land Department fee of 0.125% of the assessed value rather than the 4% that applies to a sale.
Who counts as a first-degree relative for a Dubai gift transfer?
Spouse to spouse, parent to child and child to parent. Siblings, cousins and in-laws do not qualify and their transfers are treated as sales.
Can I gift a mortgaged property in Dubai?
Generally not while the mortgage remains registered. The loan must be settled and the mortgage released, or the receiving party must arrange financing acceptable to the bank.
How is the value assessed for a gift transfer?
The Dubai Land Department requires a valuation certificate and applies the 0.125% fee to its assessed value, so the parties cannot reduce the fee by declaring a nominal gift value.
Can I transfer my property to my own company as a gift?
Transfers to a company wholly owned by the same individual are commonly processed at the gift rate, but the rules are specific. Confirm the position for your exact ownership structure before proceeding.
Is a gift transfer reversible?
No. Once registered, the property belongs to the recipient. If retaining control matters, a will or a corporate structure is usually the more appropriate tool.
The Short Version
A qualifying family transfer in Dubai costs 0.125% rather than 4%, and most owners never find out. Confirm the relationship qualifies, start the attestation of foreign marriage and birth certificates early, clear any mortgage first, and be clear that the transfer is permanent. Where control needs to be retained, a will is the better instrument.
This is general information about Dubai property procedure, not legal advice. Fees, eligibility and process change. Confirm current requirements with the Dubai Land Department or a qualified UAE lawyer.
