The emirate of Dubai has become one of the world’s most attractive cities to invest in real estate, especially for foreign investors. Thanks to the freehold ownership policies, 0% of property tax, and strong rental yields, this city represents the ideal place to grow your wealth. Although an important question has been overlooked, what happens when the owner of the properties dies?
Inheritance laws can be a bit complex to understand since they differ between Muslims and non-Muslims.
Here, we will explain everything you need to know about inheritance laws and regulations.
Inheritance Rules and Laws in Dubai
Sharia Law as the Default
According to Federal Law No. 28 of 2005 (Personal Status Law), inheritance in the UAE is managed based on Sharia Law by default. This rule applies to Muslims and, in cases where a will was not made, to non-Muslims as well.
Inheritance For Non-Muslims
In case of being a Non-Muslim, there are legal procedures that you can follow to avoid the automatic application of Sharia Law.
Federal Law no. 15 of 2007 allows Non-Muslims to request that the inheritance laws of their home country apply to their assets in the UAE territory. In order to do this, you must have a registered will with the DIFC Wills or Dubai Courts; in the absence of this, Sharia law will automatically apply.
DIFC Wills and Probate Registry
DIFC allows non-Muslims to register a Will. This allows individuals to distribute their assets however they deem convenient after their death.
This process is conducted in English and follows common law principles.
Dubai Court Wills
Non-Muslims can also register a Will in the Dubai Court. This makes the Will enforceable under UAE law, but it might involve Arabic translations and local court processes.
This process can be more affordable, although it can be slower to execute at the moment.
Why Is It Important to Register a Will?
In case of not having a registered will in Dubai:
- Asset distribution will follow Sharia Law
- The probate process can take longer and involve more legal problems
- Heirs may face unexpected fees and legal challenges
When a will is present, foreign investors can:
- Choose their heirs freely
- Ensure smooth transfer of assets
- Avoid delays and disputes in court
Steps to Follow for Foreigners:
- Consult a specialized lawyer: They will create a draft that aligns with UAE laws
- Choose where to register it: DIFC Wills and Probate Registry (for common law systems) or Dubai Courts.
- Register the Will: In order to make the will legally binding and enforceable in the UAE.
- Keep it updated: In case your decision or financial situation changes.
Pro Tip
Foreign property in Dubai is inheritable, but if you do not have a registered will, Sharia law will automatically apply. To ensure that homeowners’ wishes are followed in case of death, they should prepare the legal documents as soon as possible.
What happens if a foreign owner dies without a will?
If a will is not registered at the time of death, Dubai Courts will distribute the assets following Sharia Inheritance Laws, which may not align with the deceased’s wishes.
What is The DIFC Wills and Probate Registry?
The DIFC allows non-Muslims to register wills that are enforceable in Dubai. They cover assets such as property and bank accounts, among others. This process ensures distribution according to common law principles rather than Sharia Law.
Can I register a will with Dubai Courts instead of DIFC?
Yes, non-Muslims are allowed to register wills with Dubai Courts, although the process might involve translations and local procedures. This said, both are legally binding.
