Dubai property can be transferred between first-degree relatives as a gift — a hiba — at a substantially reduced DLD rate. In place of the 4% transfer fee, a gift transfer is charged at 0.125% of the property value, subject to a minimum fee.
The reduced rate applies to transfers between first-degree relatives: parent and child, and between spouses. Transfers to siblings or more distant relatives do not qualify and are treated as standard transfers at 4%. Relationship must be evidenced — typically by attested marriage or birth certificates, legally translated where issued abroad. Gifts into or out of certain wholly-owned corporate structures follow their own provisions, an area that has seen procedural change.
The 0.125% is applied to the property value as assessed for the transfer, which the DLD may base on its valuation rather than a declared figure. On an AED 3,000,000 villa, the gift fee is AED 3,750 — against AED 120,000 under the standard rate.
The reduced rate replaces only the 4%. The fixed administrative charges — title deed, map, knowledge and innovation fees — apply as usual, and gift transfers processed through a trustee office incur the trustee fee. Where the property carries a mortgage, the lender’s consent and the mortgage release or re-registration costs come into play before the gift can be registered.
Gift transfers are commonly used in succession and family-restructuring planning; the mechanics above are the DLD schedule only, and the legal effect of a gift on ownership and inheritance is a matter for qualified legal advice.