Buying Real Estate in Dubai?
Here's how to protect your assets from unpleasant surprises.
Why Property Owners from Germany, Austria, and Switzerland Absolutely Need a UAE Will—and How to Avoid Mistakes in Estate Division.
Prof. (GTU / Georgia) Dr. Stephan J. Lang – Attorney at Law and Specialist in Inheritance Law
The Costly Mistake When Buying Real Estate in Dubai
Many investors from Germany, Austria, and Switzerland meticulously protect their assets—until it comes to their property in the Emirates. There is often a dangerous misconception: “My will in my home country covers everything.” Not only is this legally incorrect, but it also poses a massive threat to your family’s assets and security.
Risk 1: The “Estate Splitting” Trap
Under the EU Succession Regulation, the law of the last habitual residence generally applies. However, if immovable property (real estate) is located in the United Arab Emirates, the local laws of the UAE will inevitably apply in the absence of a local provision. Your estate will be divided. The result: Your German will is often ineffective with regard to the apartment in the Marina or the villa on Palm Jumeirah.
Risk 2: Sharia Law and Statutory Inheritance
If an owner dies without a registered UAE will, local courts will oversee the proceedings. For non-Muslims, in the absence of explicit provisions, the UAE’s statutory succession rules may apply in cases of doubt. These rules traditionally favor male heirs. The automatic financial protection for the surviving spouse that is common in the DACH region (e.g., the “Berlin will”) does not exist in this form under local law.
Risk 3: Frozen Accounts and Years-Long Legal Proceedings
In the event of death, bank accounts in the UAE are immediately frozen—even joint accounts—until the inheritance is settled through the courts. A European Certificate of Succession is not automatically recognized in Dubai. This is followed by lengthy translation processes, diplomatic certifications, and local court proceedings, which will cost your relatives a great deal of time, stress, and enormous legal fees.
The “Spiegel Will”: Maximum Security for Your International Portfolio
As a non-Muslim in the UAE, you have a crucial privilege: you can bequeath 100% of your assets locally as you see fit. The solution is a legally sound UAE will that prevents the application of the undesirable statutory succession rules. At Dr. Lang Emirates, we draft the proven “Spiegel will” for you—the perfect blend of European and Emirati law.
1. The UAE Real Estate Will (DIFC Wills & Probate Registry)
We will draft a highly specialized real estate will in English for you, which applies exclusively to your real estate holdings in Dubai (and Ras Al Khaimah). This will be officially registered with the renowned DIFC (Dubai International Financial Center). Your benefit: Common law applies, you have complete freedom to designate your heirs (e.g., your spouse as sole heir), and German statutory inheritance claims are elegantly circumvented.
2. Strategic Reflection (The Double Testament)
The cornerstone of our service: We ensure that your new UAE will is legally aligned with your existing will—or one to be drafted—in your home country. The areas of jurisdiction are clearly separated: The DACH will governs your global estate, while the UAE will governs exclusively your Dubai portfolio. This eliminates the risk of estate fragmentation and prevents clauses from unintentionally nullifying one another.
3. Tax Accuracy & Comprehensive Processing
Although the UAE does not levy an inheritance tax, a danger lurks back home: The German tax authorities often impose taxes anyway under the “world power” principle (Section 2 of the German Inheritance Tax Act). Our law firm partner and tax advisor, Harry von Wedelstaedt, incorporates tax-optimized structures to avoid unnecessary tax burdens in the DACH region. In addition, as certified executors, we handle the entire, seamless settlement process on-site in Dubai upon request.
Anyone who invests in Dubai without a legally valid UAE will leaves the future of their assets and family to chance.
Schedule a consultation now to review your will
Your Experts for Inheritance Law in Dubai and the Gulf States
Harry von Wedelstaedt
Tax Consultant
- Anticipated Succession
- International Succession Planning
- Tax-Optimized Estate Planning
- Establishment of Family Holdings
- Tax-Free Transfer of Business Assets
- Business Succession
- Exit Taxation
