For expatriates living in the UAE, succession planning involves more than deciding who should inherit their property. With assets potentially spread across different countries, families must consider how UAE inheritance laws interact with the laws of their home country and what steps are necessary to ensure their wishes are respected.
Without proper planning, transferring property, accessing bank accounts and managing business interests after death can become complicated and time-consuming.
Fortunately, the UAE offers several succession planning options, including registered wills, foundations and corporate holding structures. Understanding how these arrangements work is essential to protecting family wealth and ensuring an orderly transfer of assets.
How Inheritance Works in the UAE
Inheritance in the UAE is governed by different legal frameworks depending on the deceased’s religion, nationality and circumstances.
Federal Decree-Law No. 41 of 2024 on Personal Status, effective from 15 April 2025, establishes inheritance rules based on Islamic principles. These generally apply to Muslim UAE nationals and Muslim expatriates, subject to the applicable rules concerning foreign law.
Non-Muslim expatriates have additional options under Federal Decree-Law No. 41 of 2022 on Civil Personal Status. This legislation allows qualifying individuals to arrange their inheritance through a will or seek the application of their home country’s law, subject to applicable legal requirements.
Under the federal civil personal status regime, where it applies, a non-Muslim who dies without a will generally leaves half of the estate to their surviving spouse and the remaining half equally to their children. However, this outcome is not universal: applicable foreign law and other legal provisions may affect distribution.
The UAE’s new Civil Transactions Law, effective from 1 June 2026, also addresses which country’s law governs succession and wills, including special provisions concerning UAE real estate.
Without a valid will, heirs may need to establish their entitlements through court proceedings before assets can be transferred.
A properly prepared succession plan helps reduce uncertainty and provides greater protection for the intended beneficiaries.
Succession Planning Options for Expatriates
Expatriates can use several legal arrangements to determine how their UAE assets should pass to their families.
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DIFC Wills
The DIFC Courts Wills Service allows eligible non-Muslims to register wills covering their UAE assets.
A DIFC will can address property, bank accounts, business interests and guardianship arrangements for minor children. The DIFC also offers specialised wills for particular asset categories.
Its principal advantage is a dedicated registration and probate framework, providing greater certainty over the administration of the estate. However, registration involves fees and formal requirements, while assets outside the UAE may require additional planning under foreign law.
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Dubai Courts Wills
Non-Muslim expatriates may also register wills through the Dubai Courts under the applicable legal framework, including Dubai Law No. 15 of 2017.
This can be a suitable option for individuals whose principal assets are located in Dubai and who prefer to administer their estates through the local court system.
The registration process may involve Arabic documentation or certified translations, depending on the applicable requirements. The appropriate choice between Dubai Courts and DIFC wills depends on the individual’s assets, family circumstances and intended beneficiaries.
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Foundations and Holding Structures
For families with substantial or complex assets, foundations and corporate structures may provide additional flexibility.
Corporate holding structures can consolidate ownership of several investments or businesses, potentially simplifying succession and management.
These arrangements can support long-term asset management and continuity across generations. However, they involve establishment costs, ongoing administration and legal or tax considerations. Transferring UAE assets into such structures must also comply with relevant ownership and registration requirements.
Business Succession Planning in the UAE
For business owners, succession planning involves protecting not only the value of their shares but also the company’s ability to continue operating after their death.
Without adequate arrangements, the death of a shareholder may create uncertainty regarding ownership, management authority and decision-making.
A carefully drafted shareholders’ agreement can address these risks by establishing procedures for transferring shares, appointing directors and resolving disputes.
Buy-sell provisions are particularly useful where a company has several shareholders. They can establish circumstances in which surviving shareholders may acquire a deceased shareholder’s interest, together with an agreed valuation mechanism.
Family-owned businesses may also benefit from a family constitution, setting out principles for family participation, leadership succession and dispute resolution. However, its provisions should be supported by appropriate legally binding corporate documents.
Federal Decree-Law No. 37 of 2022 concerning Family Businesses provides an additional legal framework for qualifying family businesses in the UAE.
Holding companies and foundations can also help separate ownership from day-to-day management, supporting continuity when ownership passes between generations.
An effective business succession plan should address both who will own the business and who will manage it.
Succession Planning and UAE Corporate Tax
Although the UAE does not impose a general inheritance tax, business restructuring undertaken for succession purposes may create corporate tax implications.
Under the UAE Corporate Tax regime, the standard rate is 9% on taxable income exceeding AED 375,000, subject to applicable exemptions and special regimes.
Business owners considering transferring shares, establishing holding companies or reorganising their corporate groups should assess the potential tax consequences before implementing these arrangements.
Certain transactions may qualify for relief under the UAE Corporate Tax Law, including qualifying group transfers and business restructuring. However, eligibility depends on specific statutory conditions, and relief may be reversed in certain circumstances.
Qualifying family foundations may also apply for tax-transparent treatment, subject to Federal Tax Authority approval.
Early coordination between succession planning and tax advice can help avoid unnecessary costs and compliance difficulties.
For further guidance, visit our Tax Law practice area.
Frequently Asked Questions
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What happens to my UAE assets if I die without a will?
Your assets will be distributed according to the applicable inheritance laws, which depend on your religion, nationality and circumstances. Your family may need to obtain court orders before accessing or transferring assets.
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Can a non-Muslim expatriate make a will in the UAE?
Yes. Eligible non-Muslim expatriates can register wills through the DIFC Courts Wills Service or relevant local courts, including the Dubai Courts.
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What is the difference between a DIFC will and a UAE will?
A DIFC will is registered under the DIFC Courts’ dedicated wills framework, while a will registered with Dubai Courts follows the applicable local court procedures. Both can be effective, but their registration and probate processes differ.
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Does the UAE have inheritance tax?
No. The UAE currently imposes no general inheritance or estate tax. However, foreign inheritance taxes, property transfer fees and other charges may apply depending on the assets and jurisdictions involved.
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How do I protect my business in the UAE for my family?
A combination of a properly drafted will, shareholders’ agreement, business succession arrangements and, where appropriate, a holding structure or foundation can help protect ownership and business continuity.
Plan Your Succession with HAS Law
Our wills and probate lawyers in Dubai can help you put the right succession planning structures in place. Contact HAS Law for a confidential consultation.