How to Transfer Real Estate from Personal Ownership to a Company in Dubai?

Dubai Real Estate Transfers

Transferring real estate property from personal ownership to a company in Dubai can be a complex process for those unfamiliar with the territory. The UAE uses "Hiba Transfers," or gifts from an individual to a family member or company, to move properties and assets. This is a great way to plan inheritances or manage property with future generations of ownership in mind.

However, certain factors can make navigating these legal steps a challenge. For one, not all corporate structures are permitted to hold properties, and some restrictions may apply to specific situations. But with MSZ Consultancy at your side, you'll never have to worry about the ins and outs of transferring real estate to Dubai. Below, we'll go over the process of transferring real estate from personal ownership to a company, and vice versa.

How to Transfer Real Estate Property from Personal Ownership to a Company in Dubai

Transferring your real estate property in Dubai involves several steps and legal formalities. Here's a step-by-step guide for what you can expect:

• Evaluate Eligibility - You’ll want to verify that the property and the company meet all the requirements set by the Dubai Land Department (DLD). Freehold properties can generally be transferred, but additional rules may apply depending on the property type and location.
• Prepare the Required Documents - The next step will be to gather the required documents, including your property title deed, company trade license, Memorandum of Association (MOA), and passport copies.
• Obtain Necessary Approvals - From here, you’ll work with the DLD to secure approvals for the transfer. This may involve applying for and paying any required fees.
• Complete the Transfer - Once approvals are secured, ownership can officially be transferred to the destination company. This process is finalized with a new title deed that's issued under the company.

The Benefits of Transferring Your Property to a Company

Transferring a property into a company in Dubai isn't just administrative- it's a smart strategic move:

1. Enhanced Asset Protection - Shield your personal assets by separating property ownership from personal liabilities.
2. Streamlined Business Operations - Use the property as a company asset for leveraging business loans, investments, or expansions.
3. Tax Planning Opportunities - Gain financial benefits through optimized tax strategies and deductions available to companies.
4. Estate Planning Efficiency - Renting or purchasing a physical address with office spaces is a mandatory part of operating a business in the UAE.
5. Flexibility in Ownership Transfer - Selling or transferring property becomes easier when it's registered under a company.

Key Considerations

Before transferring your real estate property to Dubai, there are several things you’ll want to keep in mind for the smoothest transition. Here are some of the biggest considerations:

• Your company must be properly registered and compliant with all UAE laws
• Confirm that your property type and location align with DLD regulations for corporate ownership
• Some corporate structures are ineligible to hold properties within the UAE
• Factor in transfer fees and costs, including the DLD registration fee and possible VAT charges
• Seek expert legal and financial advice from experts like MSZ to avoid unexpected complications
• Understand that the process timeline can vary depending on the property and approvals required

Corporate Structures Permitted to Own Property in the UAE

As we’ve mentioned, not all corporate structures are permitted to hold properties within the UAE. Some of the most common types that are given the authority include:

1. UAE Mainland Companies - Mainland companies can own property in designated areas, though they are subject to specific regulations.
2. Free Zone Companies - Free zone companies are allowed to own property in certain freehold areas across the UAE. They are 100% expatriate-owned, making them a popular choice for foreign investors.
3. Offshore Companies - Offshore companies, such as those established in JAFZA or Ras Al Khaimah International Corporate Centre (RAKICC), can own property in designated freehold areas. These structures are particularly advantageous for tax planning, asset protection, and privacy.
4. Real Estate Investment Trusts (REITs) - REITs are specialized corporate entities designed for collective investment in property. They are suitable for investors seeking to own income-generating real estate through a managed structure.
5. Holding Companies - Holding companies can own property as part of their broader asset portfolio. They’re often used for managing multiple assets, including real estate, under a single corporate umbrella.

Common Fees Involved in Property Transfers

Here is a general overview of transfer-related expenses:

• Hiba Transfer Fee: Usually 0.125% of the property value (subject to current DLD regulations)
• DLD Administrative Fee
• Typing and Registration Fees
• Knowledge and Innovation Fees
• Agent or Consultancy Fees (optional but recommended)

Exact amounts may vary based on property type and location.

MSZ Consultancy Can Help You Transfer Your Real Estate

Managing real estate transfers, handling business setups, and navigating ever-changing regulations can take a lot out of any entrepreneur. But it doesn’t have to be that way. By working with MSZ Consultancy, you can cut through the red tape and get down to what matters the most.

Our experts have years of experience handling business formation in Dubai, transferring real estate in Dubai, establishing legal structures, and hiring PRO services to handle government interfacing. We do it all so you can focus on your company’s success.

Call MSZ Consultancy at +971 52 544 1248 for more information on what we can do for your investments. We’ll provide you with a FREE quote and create a custom road map for your success in the UAE.