Inheritance Laws for Expats in UAE Real Estate: A Comprehensive Guide

The UAE inheritance laws are distinct from many Western legal systems, primarily because they are governed by Sharia law unless alternative legal arrangements are made. For expats investing in UAE real estate, understanding how property inheritance works is crucial to avoid legal complications.

This guide explains inheritance laws for expats in the UAE, including Sharia law principles, DIFC Wills, legal processes, and alternative solutions for property succession.

1. How Inheritance Works for Expats in the UAE

✔ Sharia Law Applies by Default – If an expat property owner passes away without a registered will, UAE courts will distribute assets according to Sharia inheritance rules.
✔ Different Rules for Muslims and Non-Muslims – Muslims in the UAE must follow Sharia law, while non-Muslims can register a will for asset distribution.
✔ Family Members Inherit Unequally – Under Sharia law, inheritance is divided among heirs, often favoring male family members over females.
✔ Property Freezing Until Settlement – When an expat passes away, UAE authorities freeze the deceased's bank accounts and assets until legal proceedings are completed.

🔗 UAE Government Inheritance Laws

2. Sharia Law and Inheritance for Expats in the UAE

If no will is registered, Sharia principles apply, meaning:

Sons receive twice the share of daughters.
The surviving wife inherits 1/8 of the estate if children exist; 1/4 if no children exist.
Parents, siblings, and extended family may also receive shares.
Assets are divided among multiple heirs, making sole property ownership challenging.

Impact on Real Estate

Under Sharia law, an inherited Dubai or UAE property may have multiple co-owners, which can lead to disputes, forced sales, or division of assets.

🔗 Understanding Sharia Inheritance

3. How Expats Can Protect Their Property with a DIFC Will

To avoid Sharia-based inheritance, non-Muslim expats can register a DIFC Will with the Dubai International Financial Centre (DIFC) or the Abu Dhabi Judicial Department (ADJD).

✔ A DIFC Will ensures assets are distributed according to the owner’s wishes.
✔ 100% property ownership can be left to a single heir.
✔ It covers real estate, bank accounts, and personal assets in the UAE.
✔ Legal clarity prevents family disputes and forced asset division.

How to Register a DIFC Will?

Draft a Will through a registered DIFC Wills Service Centre lawyer.
Submit the Will online or in person at the DIFC Courts.
Pay the Registration Fee (AED 10,000 for a full will).
Notarize and Register it with the DIFC Wills Service Centre.

🔗 DIFC Wills Registration

4. Inheritance for Muslim Expats in the UAE

For Muslim expats, UAE inheritance laws generally follow Sharia law, even if they have a will.

However, Muslim expats may:
✔ Draft a Sharia-compliant will to clarify specific asset distribution.
✔ Gift property during their lifetime to avoid future disputes.
✔ Appoint a legal guardian for minor children through court approval.

🔗 Islamic Inheritance Guidelines

5. Inheriting a Property in Dubai: Step-by-Step Process

Step 1: Report the Death and Freeze Assets

✔ The deceased’s bank accounts, real estate, and business assets are frozen.
✔ Family members must submit a death certificate to UAE courts.

Step 2: Apply for an Inheritance Certificate

✔ Heirs must file an inheritance petition with the Dubai Courts or Abu Dhabi Judicial Department.
✔ The court reviews family lineage and Sharia inheritance rules.

Step 3: Property Distribution or Sale

✔ If multiple heirs exist, they must mutually agree on whether to sell or retain the property.
✔ If disputes arise, the court may intervene and order asset liquidation.

🔗 Dubai Courts Inheritance Procedures

6. Gifting Property to Family Members to Avoid Inheritance Disputes

Expats can gift (Hiba) their property to family members before death to control inheritance distribution.

✔ Allowed only for first-degree relatives (spouse, children, parents).
✔ Gift transfer fee is 0.125% of property value.
✔ The process must be completed at DLD Trustee Offices.

🔗 Dubai Land Department Gift Transfer

7. Tax Implications of Inherited Property in the UAE

The UAE has no inheritance tax, but heirs must cover:

✔ Dubai Land Department Transfer Fee (4%) (waived for direct family gifts).
✔ Trustee Office Fees (AED 2,000 – AED 4,000).
✔ Annual Service Charges for inherited properties.

🔗 Dubai Property Transfer Fees

8. What Happens if an Expat Dies Without a Will in Dubai?

✔ Assets are frozen until legal proceedings are complete.
✔ UAE courts follow Sharia-based inheritance rules.
✔ Spouses and children may not automatically receive full property ownership.
✔ Lengthy legal proceedings may be required.

🔗 UAE Inheritance Laws Overview

9. How to Ensure a Smooth Inheritance Process?

✅ Non-Muslim expats should register a DIFC Will.
✅ Muslim expats can use lifetime gifts to distribute assets.
✅ Regularly update property ownership documents.
✅ Consult a property lawyer for estate planning.
✅ Subscribe to GoDubai Portal for expert real estate insights and legal support.

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Conclusion

Understanding inheritance laws for expats in the UAE is essential for ensuring smooth property succession. While Sharia law governs inheritance by default, non-Muslim expats can use DIFC Wills to control property distribution.

For personalized guidance on real estate succession planning, consulting a legal expert or property advisor is highly recommended.