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Inheritance Tax in Dubai

Inheritance Tax and Succession Law in the UAE

First, the good news – in Dubai and the entire UAE, no inheritance taxes are levied. However, although the United Arab Emirates is a modern and progressive country, the legal systems are determined by Sharia, and thus different legal principles apply in the UAE than in Europe, for example.

Therefore, while there is not much to worry about concerning inheritance tax in Dubai and the UAE, as soon as you move to Dubai, there are certain facts you definitely need to know.

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The Notarized Will

Real Estate and the UAE Inheritance Law

The Notarized Will

The inheritance law in the UAE includes a variety of regulations that are unfamiliar in Germany, Austria, and Switzerland. To avoid costly procedures in the Emirates in the event of an emergency, it is important to have a notarially valid will drawn up in time.

Example: If you fail to set up a will in time, male heirs are generally favoured. In practice, this would mean that a wife receives only 12.5% of the entire estate, while the husband and male descendants receive the larger share.

Our Tip: Seek legal advice before emigrating to the UAE and draw up a will in the UAE.

Real Estate and the UAE Inheritance Law

If the estate includes immovable property within the UAE, the law of the Emirates generally applies in the absence of a will. However, if there is a will, the provisions of the Succession Ordinance and the contents of the will serves as the legal basis for non-Muslim persons.

In the UAE, the heirs may only dispose of the immovable property forming part of the estate after a legally binding judgement has been issued.

Our Tip: To avoid inheritance disputes regarding real estate assets in the United Arab Emirates, it is advisable to hold the real estate in the name of a foreign company or a Foundation. It makes sense to establish such a foreign company in a state where no inheritance taxes are levied either.

The Advantage of this procedure is that in the event of an inheritance, it no longer concerns real estate assets in the UAE but merely the shares of the company. These can be transferred to the heirs without any problems, while the company remains the owner of the properties.

Do you have questions about inheritance tax and inheritance law in Dubai or another Emirate of the UAE? Our experts offer free and non-binding advice. Schedule your personal consultation appointment with us now or send us your questions and concerns.

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Aspect	Dubai Freezone Company*
Jurisdiction	The free trade zones are independent economic zones with their own administration. Each zone has its own procedures for formation, licensing and supervision.
Ownership	100% foreign ownership is possible. A local sponsor is not required.
Scope of activities	The freezone is ideal for internationally active companies that operate outside the United Arab Emirates or maintain business relationships with other freezones. Direct trade on the local market is generally not provided for, but can be enabled through supplementary models (e.g. distribution partners or additional license).
License / Business purpose	Each freezone offers industry-specific licenses, e.g. for trade, services, technology or production. The granting is done directly by the respective freezone authority.
Office / Establishment	Each freezone company requires an establishment – e.g. Flex-Office, Shared Desk or an own office. We offer Full-Service packages that already contain a complete solution and enable immediate operational readiness.
Visa / Employees	Entrepreneurs and employees can obtain Residency visas. The number depends on license and office size.
Corporate tax (Corporate Tax)	Profits up to AED 375,000 per year remain tax-free. Only the profit exceeding this is taxed at 9%. Companies in a freezone that meet the legal requirements can continue to apply the tax rate of 0% on qualifying income. Small businesses with an annual turnover of up to AED 3,000,000 are completely exempt from corporate tax until the end of 2026.
Profit transfer / Withholding tax	Profits and capital can be transferred abroad without restriction. No withholding tax is levied.
Costs	Formation and ongoing costs are usually cheaper and clearly calculable. After individual consultation, we determine the optimal location and, upon request, submit a tailor-made offer that includes all services.
Conclusion	A Freezone company in Dubai is the ideal structure for entrepreneurs who are internationally active or want to conduct business with partners worldwide from Dubai. It offers full ownership rights, tax advantages and a modern, business-friendly environment.

Aspect	Dubai Mainland Company*
Jurisdiction	The mainland is subject to the state authority Department of Economy & Tourism (formerly DET) and other onshore authorities. These control all economic activities within the UAE.
Ownership	In many cases, 100% foreign ownership is also possible. In individual, regulated areas, special approvals may be required.
Scope of activities	Mainland companies may conduct business without restriction within the entire UAE. They are therefore the right choice for companies that want to be locally present and offer their products or services directly on site.
License / Business purpose	Licenses are granted centrally by the state onshore authorities. The procedures are more extensive and often subject to additional requirements.
Office / Establishment	On the mainland, a fixed business location is mandatory. As a rule, stricter area requirements and rental obligations apply here.
Visa / Employees	Mainland companies can also apply for visas for owners and employees.
Corporate tax (Corporate Tax)	For mainland companies, the same principle applies: profits up to AED 375,000 remain tax-free, above that the rate of 9% applies. This regulation ensures moderate tax burden and high planning security.
Profit transfer / Withholding tax	Mainland companies can also transfer profits freely. No withholding tax is levied either.
Costs	Formation is more complex and generally more cost-intensive. State fees, rental costs and administrative requirements are higher.
Conclusion	A Mainland company is suitable for entrepreneurs who want to be locally business active in the UAE – for example in trade, gastronomy or services for customers within the emirates.

Inheritance Tax in Dubai

Inheritance Tax and Succession Law in the UAE

The Notarized Will

Real Estate and the UAE Inheritance Law

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