There are numerous gift-giving ways. Some of them are done on a minor scale, but some are on a bigger scale, such as this one. Property gifting is a common practice amongst businesses, and now, it is also influencing other people. Hence, in UAE, you can now gift property, but this also comes with some set of laws. Before you get started on this process of how to gift a property in Dubai, you will need to know who can hold properties in UAE.
The deed is that the ownership of the property that you are gifting will go into the recipient’s name. The main objective of giving gifts as such is to maintain higher standards and also to show much appreciation.
The majority of the time, gift-giving in the real estate world is a big thing. Hence, this applies to only families or offshore firms. That is because it is a big practice, and it is only the close and most beneficial people that can have it. Moreover, there are also times when people make half of the property to the other person who they are going to be giving the gift. This is a voluntary act, and it passes down the ownership from one person, the original owner, to the other becoming the new owner.
The Hiba transfer history
The transfer of land is a crucial step which is why you will need to have authorized permission. You will need to seek help from the Dubai Land Department, which will tell you about all of the different laws and how you can do this process. The major element you need to keep in mind about the Hiba transfer is that you can gift your property to only first-degree relatives or a corporate body for business. This can be vice versa as well. Besides this, you will also need to make some more considerations. This is so that the gift-giving process of the property is accurate and without any violations.
The corporate bodies that can operate and hold companies
Not every business has permission to have its own property in UAE. Therefore, this becomes a big deal and a major element to look into before concluding the Hiba transfer. If you are thinking about giving someone property and go through with the process and later find out that you cannot give them because they are not able to hold property. Hence, all of your efforts will slack off. This is why you need to know about those who are permissible to hold companies in UAE. Therefore, there are only a small amount of businesses that are permissible by the Dubai Land Department to hold companies and own land.
How can you transfer property?
The UAE is an Islamic nation, and the Hiba transfer is a common term. Hence, whenever you go to an Islamic country, you will often find this word. The transfer of property is a big deal, and the laws are set according to the Shari. Therefore, people who are going to be giving their property can do so to a first-degree cousin and to a company. This can also happen the opposite way. The reason why this is acceptable is so that the next generations can gain profit from these assets. Therefore, the Sharia Law is useful when it comes to the Hiba transfer. If you do not know about the law, then you can you might find it hard to interpret and understand it. However, you should if you are going to be performing the Hibs transfer.
Other reasons why the Hiba transfer is an acceptable idea
There are numerous reasons why Hiba transfer is a good idea. There are tons of people who practice it because of the benefits and the reasons behind it. Therefore, you can also look into it only if you are sure that the companies can own property. There are different benefits that the person will get once they go through this process. The benefits will not only come to that person but also to the company that they shift it to. Hence, here are some of the most prominent reasons why people gift properties to companies in Dubai.
- Long-term planning for the estate business
It is obvious that tons of people are looking for a new futuristic plan and trying to sustain their living. Hence, for those who are trying to create a long-term plan for the estate business, this is a good strategy that they can use. This is mainly for future generations because some businesses require the continuity of business. Hence, this is to make everything easy so that their children or spouses can continue the business to prosper in the future and to make an easy living.
- Inheritance organization
Inheritance is going to be one of the biggest reasons why the Hiba transfer is done. Usually, when it comes to property inheritance, it is challenging and also difficult. The main reason for that is that they are not familiar with Sharia law. Therefore, the law helps to draw out and eliminates any restrictions when it comes to giving the right to the properties. Therefore, the local inheritance rules make it easier for people to pass on their property to the corporation, which can be inside or outside of the UAE. By considering the shareholders of the company, they will still be able to hold the ownership indirectly if the company is outside UAE.
- To maintain and control the ownership and property
The main benefit that people get from transferring properties is that they will be able to control them. The existing owners can still maintain and have legal ownership over their property in UAE. This is only through the ownership arrangement set out in UAE. You can always have authority and control as well. Moreover, it will be your decision to whom you are willing to give as it is your company. Therefore, you will have the control to select and make the decision yourself.
