Q:I am a property owner in the UAE. I am a landlord in the UAE. Do I have to pay any taxes or fees when transferring a property to a family member?

Suppose you own a property in Dubai and intend to transfer it to your first degree family member.

As the provisions of the Executive Committee Resolution No. 30 of 2013 apply to the approval Fees of the land Department  (the‘Dubai Land Department Fees Resolution of 2013’).

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, which states: “By virtue of this Resolution, the Fees for registration of Real Property Dispositions in the Real Property Register, including those related to completed, under-construction, or off plan real property, as well as the Fees for services provided by the Department, as set out in Table (1) attached hereto, are approved.”

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% 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.”