DIFC Regulations of 2026 · DIFC
Made under Article 175 of the Real Property Law 2018, the Regulations set the freehold transfer fee on transfers of real property interests and of indirect interests (shares in property-holding entities), mortgage registration fees, other prescribed fees and penalties, and the Registrar's assessment, inspection and enforcement powers.
The DIFC Real Property Regulations are made by the Board of Directors of the DIFCA under Article 175 of the Real Property Law, DIFC Law No. 10 of 2018, and apply to anyone to whom that Law applies (Regulation 1.1.2). The current text is Consolidated Version No. 4, in force on 10 April 2026. They impose and collect the Freehold Transfer Fee on every transfer of DIFC real property, direct or by way of shares and other indirect interests, and set the Registrar's fees and penalties.
Appendix 2 fixes the fee at 5% of the consideration paid or payable, or the market value of the unencumbered interest as determined by the Registrar, whichever is greater (paragraphs 3 and 4). It is payable on every transfer, however effected, and on the acquisition of an Indirect Interest in a company, partnership, non-profit, foundation or trust that is the Registered Owner, calculated on the proportion acquired by the natural-person Ultimate Beneficiary (paragraphs 2.2 and 2.3). The transferee, or the developer for off-plan sales, lodges a Transfer Instrument or an Indirect Interest Transfer Notification with a self-assessment and pays on lodgement (paragraph 5). Regulation 1.3 sets the payment dates: within 60 days of an off-plan sales agreement, 30 days of the effective date of an indirect transfer, 50 days of a sale agreement for a mortgaged lot, and 30 days otherwise. Late payment attracts the Unregistered Freehold Transfer Penalty of 5% interest on the fee from the payment date until paid, plus the Regulation 5.3 fine (Regulation 5.9). The Registrar may re-assess an under-declared fee, payable within 30 days, and an appeal does not suspend payment (paragraphs 5.5 to 5.9). No fee is refundable if a transfer is cancelled (paragraph 7).
Regulation 1.2.1 exempts eight classes of transfer: between a natural person and a legal person they own in the same proportion; between legal persons or within a group where each Ultimate Beneficiary keeps the same proportion for at least one year; Islamic-finance redemptions; inheritance; dealings in listed shares; and indirect interests in a DIFC REIT. Exempt transfers must still be notified and the Registrar may demand ownership documents (Regulations 1.2.2 and 1.2.3). A Mortgage Registration Fee of 0.25% of the secured debt is payable by the mortgagor and lodged by the mortgagee (Regulations 1.1.6 and 1.4).
Appendix 1 lists prescribed fees in USD: 100 to register a transfer instrument, caveat, mortgage or other instrument; 200 for an official search or copy; 273 for a replacement title deed or an exempt transfer; and 100 to 300 to register leases by length. Regulation 5 makes any contravention an offence fined at USD 1,000, or USD 100 for failing to register a lease under Article 49(1) of the Law, and gives the Registrar information-gathering and Court enforcement powers. The Regulations are in force.
Owners, buyers, sellers, developers, mortgagors, mortgagees and lessees of real property in the DIFC, and anyone who acquires or disposes of shares, partnership, foundation or trust interests in an entity that owns DIFC real property, together with their officers and agents and the Registrar of Real Property.
English official text in 9 provisions. Open the full text or jump to a provision:
| Regulation 1.1.6 | Defines Indirect Interest as any direct or indirect legal, equitable or beneficial interest in a company, partnership, non-profit, foundation or trust that is the Registered Owner of DIFC real property, sets the Mortgage Registration Fee at 0.25% of the secured debt and the Unregistered Freehold Transfer Penalty at 5% interest on the unpaid fee. |
| Regulation 1.2.1 | Exempts from the Freehold Transfer Fee transfers between a natural person and a legal person with identical proportionate ownership, group and legal-person transfers where each Ultimate Beneficiary keeps the same proportion for at least one year, Islamic-finance redemptions, inheritance, dealings in listed shares and indirect interests in a DIFC REIT. |
| Regulations 1.2.2–1.2.3 | Exempt transfers under paragraphs (a) to (f) must still be lodged by Transfer Instrument or Indirect Interest Transfer Notification, and the Registrar may demand any documents needed to establish the beneficial interests in transferor and transferee. |
| Regulation 1.3 | The Freehold Transfer Fee is payable within 60 days of an off-plan sales agreement (by the developer), 30 days of the effective date of an indirect transfer, 50 days of the sale agreement for a mortgaged lot and 30 days for any other transfer, the transferee being responsible for lodgement and payment. |
| Regulation 1.4 | The mortgagee must lodge the instrument for registration of a mortgage and pay the Mortgage Registration Fee, which the definitions place on the mortgagor at 0.25% of the secured amount. |
| Regulation 5.3 | The penalty for failing to register a lease under Article 49(1) of the Law is USD 100; the penalty for any other offence against the Law or the Regulations is USD 1,000, imposed by the Registrar following the Operating Regulations' Decision Making Procedures. |
| Regulations 5.6–5.7 | The Registrar may by written notice require any holder or transferee of a real property or indirect interest, or its officers, to give information or produce documents, and may apply to the Court for compliance and costs orders where an Order, request or requirement is ignored. |
| Regulation 5.9 | A party that fails to pay the Freehold Transfer Fee by the payment date is liable for the fee, the Unregistered Freehold Transfer Penalty and the USD 1,000 fine. |
| Schedule (Appendix 1) | Prescribed fees in USD: 100 to register a transfer instrument, caveat, mortgage, strata title deed per lot or other instrument; 200 for an official search certificate or copy of an instrument; 273 for a replacement title deed or an exempt transfer registration; 100, 200 or 300 to register leases of six months to five years, five to ten years, or ten years and over. |
| Schedule (Appendix 2, paragraphs 2–4) | A Freehold Transfer Fee of 5% is payable on every transfer however effected, calculated on the greater of the consideration and the Registrar's market value; for an indirect transfer it is based on the proportion of the Ultimate Beneficiary's interest in the Registered Owner or the trust it holds for. |
| Schedule (Appendix 2, paragraph 5) | The transferee or developer must lodge the Transfer Instrument or Indirect Interest Transfer Notification with a self-assessment and payment; the Registrar may assess an additional or unassessed amount payable within 30 days, with penalty interest backdated to the original payment date, and an appeal to the Court does not suspend payment. |
| Schedule (Appendix 2, paragraphs 6–8) | The Registrar may sue in the Court to recover the fee, penalty and other sums, no fee is refundable if a transfer is cancelled, and the Registrar may authorise inspection and copying of records to establish whether a transfer occurred and the market value. |
Late payment of the Freehold Transfer Fee triggers the Unregistered Freehold Transfer Penalty of 5% interest on the fee from the payment date until actually paid, plus a fine of USD 1,000 (Regulations 1.1.6 and 5.9). Any other offence against the Law or the Regulations, including ignoring a Registrar's information request, carries a fine of USD 1,000, and failing to register a lease under Article 49(1) of the Law USD 100 (Regulations 5.3 and 5.6). The Registrar may re-assess under-declared fees with penalty interest backdated, recover all sums through the Court and seek compliance and costs orders (Regulation 5.7 and Appendix 2, paragraphs 5 to 6).
The indirect-transfer rule is the trap we warn about whenever a client sells or restructures shares in a DIFC company, foundation or partnership that owns DIFC property: the 5% Freehold Transfer Fee attaches to the share deal in proportion to the Ultimate Beneficiary's interest, falls due within 30 days of the effective date, and is self-assessed by the buyer. Before any such transfer we map the natural-person beneficiaries on both sides against the Regulation 1.2.1 exemptions, because moving a unit from an individual into a wholly owned holding vehicle, or reorganising within a group, can be exempt provided the beneficial proportions are unchanged and, for group transfers, stay unchanged for a year. Exempt or not, the Indirect Interest Transfer Notification still has to be lodged, so we add it to the completion checklist alongside the Registrar of Companies filings. We also cost the 0.25% mortgage registration fee and the lease registration fees into property-holding budgets.
| Cites | DIFC Real Property Law · DIFC Operating Law |
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
DIFC Real Property Law
Establishes the DIFC's own land registry and title system: registration of freehold and leasehold interests, mortgages, easements and off-plan sales within the Centre, th…
DIFC Leasing Law
Governs leases of commercial, retail and residential premises within the DIFC: lease registration, landlord and tenant rights and obligations, security deposits held unde…
DIFC Leasing Regulations
Made under Article 9 of the Leasing Law 2020, the Regulations explain how the Law applies to leases entered into before it commenced, when the security-deposit provisions…
DIFC Companies Law
Governs the incorporation and running of DIFC companies: private companies (one to fifty shareholders) and public companies, directors' duties, shares and capital, accoun…
DIFC Foundations Law
Creates the DIFC foundation as a separate legal person with definite, feasible and lawful objects (charitable or not), managed by a council of at least two members, with …
DIFC UBO Regulations
Made under Article 46 of the Operating Law, the Regulations require DIFC companies, partnerships, non-profits and foundations to identify, record and file their ultimate …
DIFC Operating Regulations
Made under Article 46 of the Operating Law, the Regulations govern issue and renewal of commercial and operating licences, restricted, short-term and qualified retail lic…
Whether you are establishing a new venture, restructuring an existing enterprise, or exploring residency pathways — we are here to advise.
Arrange a Consultation →