Introduction to Dubai Gift and Inheritance Tax

Correlation between Korean martial law and Dubai real estate market

– Introduction to Dubai Gift and Inheritance Tax

We are collectively traumatized by the imminent martial law situation in Korea. Although we did not directly experience the Gwangju Democratization Movement in 1980, it must have been a very difficult week for our generation, who were educated through audio and visual images of numerous cases of damage and massacres. Many people have asked me to write a column about martial law in Korea.

Yes. That's right, that's right. It has nothing to do with anything. ㅠ__ㅠ;;

I have no intention of encouraging people to escape/immigrate from my beloved homeland, the Republic of Korea, but due to Korea's backward political situation and difficult economy, there are many questions from those who are considering immigrating to Dubai. So, I would like to take this opportunity to summarize the laws and regulations related to gifts and inheritance in Dubai (UAE).

1) UAE inheritance and inheritance laws

As you can easily see by searching on Google, there is no gift or inheritance tax in the UAE. However, there is a possibility that a 9% corporate tax could be introduced in a few decades, as advised by the National Development Council, but property lawyers say that no new laws will be introduced for at least 10-20 years. This is because the Arab culture of being tolerant of family, succession, inheritance, and other bloodlines (heritage) is still strong.

2) Applies only to immediate family members

3) Inheritance and gift fees (DLD-Dubai Land Department- fee)

A registration fee of 0.125% is applied to the inheritance/gift of real estate between relatives. This is a lower rate than the standard 4% fee and is calculated based on the property valuation by the Dubai Land Department.

The above is something that can be easily found through a simple search, but I am introducing it because there are many inquiries about gifts to minors. In other words, it is a case where parents purchase real estate in Dubai and then give it to their minor children.

<미성년 자녀 증여 절차>

1. Completion of real estate and issuance of title

• Transfer of ownership possible after completion: Off-plan properties can only be gifted after the Title Deed is issued by the Dubai Land Department (DLD) upon completion. In other words, gifting is only permitted if you own the Title Deed.

2. Dubai Court Approval for Minor Beneficiaries

• If your children are minors, you may need the approval of the Dubai Courts to transfer real estate. This is a procedure to protect the best interests of your children as their guardian.

• Documents required for court approval: 1) Copies of passports and UAE visas of parents and children 2) Family relationship certificate (if issued in Korea, notarization required in Dubai) 3) Guardianship declaration, if required

3. Prepare documents required for donation procedures

1) Title Deed 2) Passport and visa of parents and each child 3) Proof of family relationship (e.g. child's birth certificate) 4) Translation and notarization

4. Dubai Land Department (DLD) Donation Application Procedure

• Once the required documents are prepared and court approval is obtained, you can apply for gift registration at the DLD.

• Procedure: 1) Obtain a property valuation report from DLD.

2) Submit the gift application and documents to DLD. 3) Pay the gift registration fee of 0.125%. 4) Complete additional paperwork at the Trustee office, if necessary.

5. Consult with legal and real estate experts

We recommend that you consult with a real estate attorney or real estate professional/agent who is familiar with Dubai’s DLD regulations to help you complete the documentation and ensure a smooth process.

Aren't these procedures boring? Many people are curious, but I was worried about when and how to introduce these boring procedures. Given the gloomy situation in our country, I will introduce them in a boring way.

Next time, let's take a look at the Dubai real estate market with some interesting content.

thank you

[source] Dubai Real Estate Column 04 – Introduction to Dubai Gift and Inheritance Tax | Author Araco Dubai Real Estate