Inheritance law in the United Arab Emirates differs fundamentally from legal systems in Europe, North America and most other Western jurisdictions. For foreign owners of UAE property, it is important to understand which rules apply, what recent changes mean and why a DIFC will is the only way to determine who inherits your property.

The starting point: property on UAE soil falls under UAE jurisdiction

Regardless of your nationality, residence or faith: property located on UAE soil falls under the jurisdiction of the UAE in the first instance. This means that upon the death of the owner, the local authorities may decide how the property is distributed, unless there is a valid local will.

This is the point that most foreign owners miss. They typically have a will at home that specifies “everything to the surviving spouse.” But that will is generally not recognised in the UAE for real estate on UAE soil.

Recent rule changes and their consequences

The UAE has made several adjustments to inheritance law for foreign owners in recent years. These changes are intended to make the country more attractive for international investors.

The exact application of these new rules to foreign non-residents is currently not straightforward. The legislation is evolving, and practice shows that interpretation can vary by emirate and by case.

In concrete terms for you as a foreign owner: you cannot predict with certainty how your property will be distributed if you pass away without a local will. The uncertainty itself is the risk.

The interaction with your home-country inheritance law

As a foreign property owner with UAE assets, you are dealing with two legal systems:

Your home-country inheritance law governs the succession of your domestic assets. Your will, statutory distribution rules and forced heirship provisions (if applicable) apply to your assets at home.

UAE inheritance law may be applied to your assets on UAE soil. This system has different principles, different distribution rules and different procedures.

There is no automatic alignment between these two systems. A home-country will typically does not reference UAE property, and if it does, that reference is generally not recognised in the UAE.

The solution is two separate instruments: a will in your home country for your domestic assets, and a DIFC will for your UAE property. Both coexist and complement each other. Read more in our article on the misconception that your heirs automatically inherit your Dubai property.

What the DIFC changes

The Dubai International Financial Centre has its own legal system operating under common law, separate from the regular UAE courts. Through the DIFC Wills Service Centre, non-Muslims can register a will that specifies exactly who inherits their UAE property.

This will is enforced by the DIFC court. It prevents the regular UAE inheritance rules from being applied to your property. You determine the distribution yourself, regardless of future rule changes.

The position of the surviving partner

Without a DIFC will, the position of the surviving partner is uncertain. Local rules determine the share, and those rules are currently not clear-cut for foreign owners.

With a DIFC will, you specify exactly that your partner inherits the property (or another share of your choosing). No interpretation is needed, no court procedure and no uncertainty.

For couples, a mirror will is the most practical option: two separate wills registered in the same procedure. Read more about mirror wills for couples with UAE property.

The position of children and other heirs

If you have children, you can specify in a DIFC will, per property, who inherits what. You can distinguish between minor and adult children, and you can include a guardianship arrangement for minors.

Without a DIFC will, local rules determine the distribution among your heirs. The outcome may differ from what you specified in your home-country will.

Tax considerations

A DIFC will governs the succession of your UAE property. It does not replace your tax obligations in your home country. Inheritance tax in your country of residence may apply to your worldwide estate, including UAE property.

Consult your tax adviser for the specific consequences in your situation. VAEtestament does not provide tax advice.