Gifting of Property in UAE
When it comes to inheritance and succession planning in Dubai one of the most cost effective estate planning tools is the gifting of property.
At TWS Legal Consultants, we have extensive experience in advising on gifting property – where you can transfer your property via a process called “Gift Transfer” at the Dubai Land Department. Gift transfers are popular in Dubai for inheritance, tax structuring and succession purposes particularly as Sharia Law prevails in the region.
We are a multi-lingual firm, proficient in Sharia and non-Sharia law. Our lawyers are registered with the UK Solicitors Regulation Authority and the Dubai Legal Affairs Department and have robust knowledge of UK/UAE law and how it applies to expatriates in the UAE. As a niche firm, we are highly respected in the region for our wealth protection and preservation expertise.
Our team will take the time to understand your needs, offer the best solutions, and meticulously draft the required documents. We are a fully digital practice and can arrange meetings by video conference if preferred.
How do gift transfers work?
Gifting property in the UAE typically refers to adding or removing a name from a title deed, thereby resulting in the ownership of the property being transferred into the name of another. The goal is to safeguard the property from local inheritance regimes. Properties are gifted either within families or into offshore companies.
How can I transfer property within my family?
To qualify for a gift transfer, the property must be transferred among parents or children. Transfers between siblings are not permitted. Property owners may choose to assign a property to particular family members to avoid the Sharia law distribution that would otherwise result, and in order to simplify succession issues. For example, a husband may transfer his share of a property to his wife, to avoid his siblings from inheriting it. Transfers are also used to remove a spouse from the title following a divorce.
How can I transfer property to an offshore company?
In situations where the owners wish to maintain their ownership of the property, and yet avoid the Sharia law application, setting up an offshore company is the recommended course of action. This way, the property can be transferred into the ownership of a company outside of the UAE, thereby sidestepping the regions inheritance laws. The company’s shareholders are the individuals who formerly owned the property, and therefore, they continue to indirectly hold the property through a non-UAE corporate entity.
Due to the low transfer fee for gift transfers, many individuals choose to go down this route. Company transfers are an especially valuable tool for setting up a permanent estate planning regime for future generations, one that your children can continue to benefit from, and even transfer their future assets into as well.
If you are interested in protecting your estate in an effective way, please contact one of our private client team at TWS Legal Consultants to discuss the option of gifting: