Parents putting a house in a child’s name, a spouse adding a partner to a title, an aunt passing on a family lot: each is usually done as a transfer by way of gift. The owner signs a transfer of land in favour of the recipient for no price, typically stated as being in consideration of natural love and affection, and the transfer is stamped and registered at the National Land Agency’s Titles Office.
A gift is not tax-free. Because nothing is paid, the Stamp Office values the property (or the share being given) and transfer tax, currently 2%, is charged on that market value. Stamp duty and Titles Office registration fees also apply. Who pays is a private matter, but the donor is liable for transfer tax unless agreed otherwise. Only an owner who holds a separate share can gift it: a joint tenant cannot give away an undivided interest while the other joint tenants live without first severing the joint tenancy.
Before gifting, owners often weigh the alternatives with an attorney. Leaving property by will instead attracts estate transfer tax at a different rate, with a threshold below which no tax is due, and keeps control with the owner for life. A completed gift cannot simply be undone, and the recipient becomes the legal owner with full rights to sell or mortgage. Gifts made while the donor is in debt, or under pressure, can also be challenged.
Related terms: Gifting Property, Transfer Tax, Stamp Duty, Inter vivos transfer, Transfer instrument, Registration fees and taxes, Probate Taxes.
Accurate as at October 2026. Tax rates are set by law and can change.
