Real Estate Transfer Fees New Decree

Decree no. 27 of 2019 was issued by the Ruler of Dubai on 4 September 2019, in respect of the reduction and exemption from certain fees and penalties in the Emirate of Dubai (the “New Decree”). The New Decree was published in the Official Gazette on 24 September 2019.

In Emirate of Dubai, the transfer of ownership or title to a real estate asset from one person to another rises a liability for payment of a land transfer fee which is collected by the Dubai Land Department pursuant to the Dubai Executive Council Resolution No. 30 of 2013 approving the fees concerning the Land Department (the “Fees Resolution”). The land transfer fee must be paid to the Dubai Land Department within sixty (60) days from the date of the disposition. Failure to pay the fee within the foregoing timeframe could result in a penalty that amounts to double the prescribed fee.

Article 4 of the New Decree stipulates that any person who failed to register real estate dispositions with the Dubai Land Department and failed to pay the relevant transfer fees that were applicable prior to the implementation of the New Decree shall be exempt from the obligation to provide full payment of the penalty under the Executive Council Resolution no. 6 of 2010 and the Fees Resolution provided that they procure the registration and payment of the fees within the timeframes set out in Annex 3 of the New Decree. In this case, these persons could benefit from the following discounted rates on the penalty payments that they are liable to pay to the Dubai Land Department:

Here are the rates of payments and penalties, and the specific time frame

Registration and payment effected within three (3) months from the date of entry into effect of the New Decree (i.e. between 4 September 2019 and 3 December 2019) is 100%

Registration and payment effected after the lapse of three (3) months from the date of entry into effect of the New Decree but before the lapse of six (6) months in total (i.e. between 4 December 2019 and 3 March 2020) is 75%

Registration and payment effected after the lapse of six (6) months from the date of entry into effect of the New Decree but before the lapse of nine (9) months in total (i.e. between 4 March 2020 and 3 June 2020) is 50%

Registration and payment effected after the lapse of nine (9) months from the date of entry into effect of the New Decree but before the lapse of twelve (12) months in total (i.e. between 4 June 2020 and 3 September 2020) 25%

The discounted rates on penalty payments provided for in the New Decree are time-sensitive and so it would benefit clients to consider these issues at the earliest opportunity.

Searched from: https://www.dubailand.gov.ae/English/Pages/OrganizationDetails.aspx?CategoryID=3