Our Focus Areas in Inheritance Law

Inheritance law is an important topic, especially for Europeans living in the UAE. It governs the succession of assets after a person’s death and is generally subject to German inheritance law, unless other arrangements have been made. The following points are relevant for clients in the UAE:

Applicable Law

According to the EU Succession Regulation (EU-ErbVO), inheritance law is generally determined by the deceased’s last habitual residence. For Europeans living in the UAE, Emirati inheritance law may therefore apply, unless they choose German inheritance law.

Asset Management and Transfer

Assets in the UAE, such as real estate or bank accounts, can be complicated to include in succession. It is advisable to inform yourself about local requirements (e.g., notarizations or translations).

Will

European citizens should draw up a will to regulate the succession of assets according to their wishes. This is particularly important as Emirati inheritance law differs significantly from European regulations (e.g., no automatic succession in favor of spouses).

Certificate of Inheritance and Estate Settlement

A European certificate of inheritance is generally not recognized in the UAE. Instead, Emirati courts may initiate probate proceedings. This can incur additional time and costs.

Inheritance Tax

There is no inheritance tax in the UAE. However, European inheritance tax regulations may apply if the deceased owns assets in Germany or if certain allowances are exceeded.

Powers of Attorney and Advance Directives

These documents should also be considered, as they may have different legal implications in the UAE than in Europe.

Your Experts for Inheritance Law in Dubai and the Gulf States

Prof. (GTU / Georgia) Dr. Stephan J. Lang

Specialist Lawyer for Inheritance Law, Executor, and Mediator

Lawyer and Specialist Lawyer for Inheritance Law
Certified Executor (AGT) and Mediator
Visiting Professor at GTU /Tbilisi/ Georgia (2013 – 2019)
Law Firm Location: Munich
Area: Dubai and Abu Dhabi

Harry von Wedelstaedt

Tax Advisor

Anticipated Succession
International Succession Planning
Tax-Optimized Estate Planning
Establishment of Family Holdings
Tax-Free Transfer of Business Assets
Business Succession
Exit Taxation

Will & Inheritance Law in the United Arab Emirates

Which inheritance law applies – Germany or Dubai?

According to the EU Succession Regulation, the choice of law is not linked to nationality but to the last habitual residence. If a German lives in Dubai and dies there, UAE law is applicable. The UAE, in turn, differentiates between Muslims (UAE inheritance law/Sharia) and non-Muslims. Result: For Germans in the UAE, local inheritance law often applies in practice.

Disinheritance without Forced Heirship Share

UAE law may allow non-Muslims to disinherit close relatives without German forced heirship claims under certain circumstances. This opens up scope for asset protection, depending on the objective.

Inheritance Tax

No inheritance or gift taxes are levied in the UAE. However, inheritance tax may still be incurred in Germany – e.g., for “residents” within the meaning of § 2 ErbStG. Therefore, proactive tax planning is advisable.

Peculiarities of UAE Inheritance Law

Statutory succession is traditionally shaped by Islamic law and sometimes deviates significantly from German law. Since 02/2023, a new federal law applies to non-Muslims, which, among other things, regulates marriage, custody, and inheritance law, replacing Sharia-based succession for non-Muslims – however, its application in individual cases is not yet fully clarified, which is why formally valid dispositions are essential.

Custody Clause for Minor Children

Traditionally, under Sharia law, custody does not automatically transfer to the mother upon the father’s death. While the new federal law (No. 41/2022) strengthens joint custody in cases of divorce, its effects on inheritance cases are not yet conclusively foreseeable.

Choice of Law & Joint Will

A choice of law in a will can stipulate that German inheritance law should apply. Caution: For immovable assets (real estate) located in Dubai, the choice of law does not apply – leading to estate splitting. Therefore, a combination of a German will and a corresponding will in the UAE has proven effective.

Form & Registration in Dubai (DIFC, Dubai Courts, ADJD)

Wills must meet strict formal requirements. For registration with the “DIFC Wills and Probate Registry,” a locally licensed lawyer is required. Alternatively, registration with the Dubai Court or the Abu Dhabi Judicial Department is possible.

FAQ

Kann ich mein Vermögen einem Nicht-Familienmitglied in Dubai vermachen?

Ja, das können Sie. Nicht-muslimische Auswanderer können ihr Vermögen durch ein eingetragenes Testament einem Nicht-Familienmitglied vermachen, z. B. einem Freund, Partner oder einer Wohltätigkeitsorganisation. Bei muslimischen Expatriates muss die Erbschaft nach der Scharia erfolgen. In diesem Fall könnten muslimische Expats Scharia-konforme Nachlassplanungsoptionen wie Schenkungen (Schenkungen unter Lebenden) und Trusts vorziehen.

Welche Rechte haben der überlebende Ehepartner und die Kinder nach dem Erbrecht von Dubai?

Nicht-muslimische Expats können ihren Nachlass durch ein Testament frei verteilen. Muslimische Expats sind an die Scharia gebunden, die bestimmte Anteile für überlebende Ehegatten und Kinder vorsieht.

Kann ein Testament in Dubai angefochten werden?

Ja, ein Testament kann in Dubai angefochten werden. Das Verfahren kann jedoch kompliziert sein und erfordert eindeutige Beweise.

Gibt es bestimmte Regeln für die Vererbung von Immobilien in Dubai?

Ja, die Vererbung von Immobilien in Dubai unterliegt bestimmten Regeln, die durch lokale und persönliche Gesetze beeinflusst werden. Die wichtigsten Gesetze, die die Vererbung von Immobilien in Dubai regeln, basieren auf den Grundsätzen der islamischen Scharia. Es gibt jedoch auch Bestimmungen für Nicht-Muslime, die ihr Vermögen nach den Gesetzen ihres Heimatlandes verwalten.

Muss ich in den VAE eine Erbschaftssteuer zahlen?

Nein, in den VAE gibt es keine Erbschaftssteuer. Die VAE erheben keine Erbschafts- oder Nachlasssteuer auf die Übertragung von Vermögenswerten von einer verstorbenen Person auf ihre Erben.

Gilt für mich deutsches oder VAE-Erbrecht?

Maßgeblich ist der letzte gewöhnliche Aufenthalt; bei VAE zusätzlich die Differenzierung nach Religion/Nationalität.

Brauche ich zwei Testamente in den VAE?

Häufig ja: ein deutsches plus ein VAE-Testament wegen Immobilien/Nachlassspaltung.

Wo registriere ich mich in den VAE?

Üblich sind DIFC, Dubai Courts oder ADJD – jeweils mit strikten Formanforderungen.

Wie können Auswanderer ihr Vermögen vor Erbstreitigkeiten schützen?

Sie können Ihr Vermögen vor Erbstreitigkeiten in Dubai schützen, indem Sie ein rechtlich anerkanntes Testament erstellen. Mit einem gut abgefassten Testament können Sie festlegen, wie Ihr Vermögen verteilt werden soll.

Wills Registry for Non-Muslims

Non-Muslims living in Dubai and Ras Al Khaimah who are at least 21 years old can create a will with the DIFC Wills & Probate Registry Service. The registry allows non-Muslim individuals to draft individual wills. Various types of wills can be chosen – depending on which assets they cover or whether they also include guardianship provisions.

Currently, there are five types of wills that can be registered: the Guardianship Will, the Property Will, the Business Owners Will, the Financial Assets Will, and the Full Will. Here are the key features summarized:

Dr. Lang Emirates is your experienced partner on the path to successful emigration to Dubai. For over 15 years, we have been assisting discerning clients with topics such as company formation, asset protection, tax planning, and real estate investments – professionally, discreetly, and individually tailored.

Types of Wills

Full/Mirror Will

Covers all types of assets
No restriction on real estate
Real estate in Dubai and Ras Al Khaimah
Also includes guardianship provisions

Property Will

Real estate only
Limited to up to 5 properties
Real estate only in Dubai and Ras Al Khaimah

Business Owners Will

Freezone and onshore shares in the UAE (including RAKICC)
Limited to up to 5 business interests
Assets in Dubai and/or Ras Al Khaimah

Financial Assets Will

Bank and securities accounts only
Limited to up to 10 bank or brokerage accounts
Assets in Dubai and/or Ras Al Khaimah

Guardianship Will

Guardianship provisions only
Children must be under 21 years old
Children must reside in Dubai or RAK
Permanent and temporary guardianship provisions possible

We advise you on all types of wills

Dr. Lang and his team specialize in inheritance law and will handle your succession planning.

Contact

Registration
How it works:

Step 1 - Choose the appropriate will:

Guardianship Will
Property Will
Business Owners Will
Full Will
Financial Assets Will

Step 2 - Draft the will

Prepared by a registered will writer (lawyer)

Step 3 - Pre-registration formalities:

Schedule an appointment with the DIFC Wills Service
Submit the draft will
Legal review
Sign the will at the DIFC Wills Service
Submission of identification documents and witness statements

Step 4 Registration:

Registration with the DIFC Courts Wills Registry for non-Muslims
Confirmation

Our Expertise for Your Succession Planning

With our offices in the UAE, we combine profound knowledge of international tax and corporate law issues with a deep understanding of local specifics. Whether it’s asset or business succession – our excellent law firm offers you discreet, holistic, and future-oriented solutions to secure and successfully transfer your assets.

Securing the Next Generation

Asset succession is a crucial process to ensure that your assets are passed on to the next generation according to your wishes. This involves not only personal and family aspects but also legal and tax considerations.

Proactive planning makes it possible to minimize tax burdens, avoid family disputes, and circumvent legal pitfalls. Topics such as drafting a will, establishing trusts or foundations, and estate administration require profound legal and tax expertise. Our law firm in the UAE offers you tailor-made solutions that consider both international and local circumstances to optimally protect and secure your assets in the long term.

Business Succession

Business succession is a complex process that not only involves the transfer of a company but also aims to ensure its continued existence and future growth. Corporate and tax law aspects play a central role here.

Key issues include the legal structuring of succession, for example, through the transfer of shares, mergers, or the establishment of new corporate structures. Tax optimization opportunities, such as the use of double taxation agreements, company valuation, or gift planning, are equally important. Furthermore, it is essential to reconcile the interests of all stakeholders – be it the family, management, or investors.

Our law firms in the UAE support you in developing individual succession solutions tailored to your personal and business requirements. We assist you with strategic planning, legal implementation, and tax optimization to ensure a smooth and sustainable transition of your company.