Inheritance of Real Estate in the UAE | Wills and Probate | Erich Rath

Key Points

Inheritance of real estate in the UAE is not an automatic transfer of an asset to heirs. It is a legal procedure that depends on three variables: the religion of the testator, the existence of a registered will and the location of the property. The main question is not who should inherit. The main question is whether the heir can actually obtain ownership and dispose of the property. Therefore, effective inheritance planning in the UAE begins with three checks: Whether the testator has a valid will registered with a competent authority. Whether the will complies with the requirements of the jurisdiction where the property is located. Whether the chosen mechanism will avoid the freezing of assets and lengthy court proceedings. If these three issues are not resolved in advance, heirs may face blocked accounts, inability to sell the property and months-long proceedings in family courts.

Why Inheritance of Real Estate in the UAE Is a Special Procedure

The UAE is not a unitary jurisdiction in matters of inheritance. Inheritance of real estate is governed by a combination of federal legislation, local emirate acts and special regimes operating in financial free zones. A key feature: real estate located in the UAE is, for purposes of probate and registration of transfer of title, subject to UAE law, even if the testator was a foreigner. This means that a will drawn up in the testator’s country of citizenship does not by itself guarantee that it will be accepted by an Emirati court or the Land Department without additional procedures. The situation is further complicated by the fact that the inheritance regime depends on the status of the testator: For Muslims, Sharia norms apply, as enshrined in Federal Decree-Law No. 41 of 2024 on Personal Status. Testamentary freedom is limited: a Muslim may dispose by will of no more than one-third of the estate, and the remainder is distributed among heirs in fixed shares. For non-Muslims, since February 2023, a separate civil regime has been in force, established by Federal Decree-Law No. 41 of 2022 on Civil Personal Status. By default, in the absence of a will, half of the estate passes to the spouse, and half is divided equally among the children without distinction of gender. However, this regime does not eliminate the need for a will — it merely sets a fallback scenario.

The Mistake Most Testators Make

Many foreign owners of real estate in the UAE proceed from the assumption: “I have a will in my own country — that is enough.” This is a dangerous misconception. The correct question is: Which mechanism will ensure recognition of my wishes specifically in the UAE and allow heirs to enter into their rights without months-long blocking of the asset? A foreign will may be recognized in the UAE, but for this it must undergo notarization in the country of execution, legalization at the UAE embassy, translation into Arabic and ratification in a UAE family court. Until this procedure is completed, the real estate and bank accounts remain frozen. Therefore, for owners of real estate in the UAE, the optimal solution is a will registered in one of the recognized Emirati registries.

Step 1. Determine the Applicable Inheritance Regime

The first thing that must be established is which legal regime applies to the testator and his or her assets.

For Muslims

The Sharia regime applies automatically to all Muslim estates in the UAE regardless of citizenship. Key restrictions: By will, one may dispose of no more than one-third of the estate after payment of debts and funeral expenses. This one-third may not be bequeathed to a person who is already an heir under Sharia without the consent of the other heirs. The remaining two-thirds are distributed in fixed shares: the spouse receives 1/8 if there are children, and a son receives twice as much as a daughter.

For Non-Muslims

The civil regime provides significantly greater freedom. A non-Muslim may bequeath all of his or her property in the UAE to any chosen person. However, this freedom is realized only through a registered will. In the absence of a will, the civil fallback order applies: 50% to the spouse, 50% to the children in equal shares. Important: foreign heirs of a non-Muslim testator may also petition for the application of the law of the testator’s country of citizenship, but only if there is a corresponding clause in the registered will or by decision of a court.

Step 2. Choose the Registry for Registering the Will

There are several recognized will registries in the UAE, and the choice among them determines not only the cost but also the probate procedure.

DIFC Wills Service

A will registry for non-Muslims, created on the basis of the courts of the Dubai International Financial Centre. A will registered in DIFC is enforced in the territory of Dubai and Ras Al Khaimah, and the DIFC courts have exclusive jurisdiction over probate matters in relation to such wills. DIFC offers several types of wills, including a Property Will — a special instrument for the transfer of real estate. A Property Will allows up to five real estate objects in the UAE to be bequeathed and does not require disclosure of other assets. The registration fee for a Single Will is approximately AED 10,000.

ADGM Wills Registry

The Abu Dhabi will registry, operating on the basis of the Abu Dhabi Global Market jurisdiction. ADGM applies common law principles and the English language, which makes it attractive for international families. ADGM offers a single flexible will covering both the distribution of assets and guardianship over minors, without splitting into separate types. The registration cost in ADGM is substantially lower than in DIFC, which makes it preferable for assets located predominantly in Abu Dhabi.

ADJD Wills Registry

The will registry of the Abu Dhabi Judicial Department. Unlike DIFC and ADGM, ADJD allows wills to be registered by both Muslims and non-Muslims. For Muslim expatriates, ADJD provides a unique opportunity: since 2021, foreign Muslims may register a civil will distributing up to 100% of the estate at their discretion, rather than according to Sharia shares.

Notarized Will in a Local Court

The most budget-friendly option is a notarized will through the court of the relevant emirate. The cost is approximately AED 2,000, but such a document does not ensure the application of common law and may be challenged on the grounds of inconsistency with the public order of the UAE.

Step 3. Determine Which Objects May Be Included in the Will

Not all real estate in the UAE may be the subject of a will without restrictions. Foreigners may own real estate by right of freehold, usufruct or long-term lease only in specially designated freehold zones. Outside these zones, ownership of land and real estate is restricted to citizens of the UAE and the GCC. For inheritance purposes, this means that an object located in a freehold zone may be transferred by will to foreign heirs. An object outside such a zone, as a rule, may not. An important nuance: objects under construction (off-plan), registered in the Oqood system, may also be included in a will.

Step 4. Appoint an Executor of the Will

Unlike the continental system, where the executor of a will has broad powers, in onshore UAE law the institution of executor of a will does not provide independent powers: the administration of the estate is under the control of the court, and heirs enter into their rights directly according to Sharia rules. The situation changes under the DIFC and ADGM regimes: the executor of the will receives powers on the basis of a grant of probate and administers the estate in accordance with the testator’s wishes. This means that for a testator who wishes to retain control over the process of asset distribution, the choice of DIFC or ADGM is fundamental.

Step 5. Take Taxes and Fees into Account

The UAE does not levy inheritance tax or estate tax. This is one of the key advantages of the jurisdiction for inheritance planning purposes. However, when real estate is transferred to heirs, a state fee arises for registration of the transfer of title. It amounts to 4% of the property value and is paid to the Land Department of the relevant emirate. This fee is similar to the one paid in an ordinary real estate purchase.

Step 6. Ensure Enforcement of the Will After Death

The death of the testator triggers the probate procedure, which differs depending on the chosen mechanism.

If the Will Is Registered in DIFC

After obtaining the death certificate, the heirs or the executor apply to the DIFC Courts Wills Service for a grant of probate. This document confirms the executor’s powers and allows disposal of the assets specified in the will. The DIFC Courts have exclusive jurisdiction over such matters, which excludes parallel proceedings in an onshore court.

If the Will Is Registered in ADGM

A similar procedure operates through the ADGM courts. The will is enforced in accordance with the law chosen by the testator, as a rule, English common law.

If the Will Is Foreign

A foreign will must undergo notarization in the country of execution, legalization at the UAE embassy, translation into Arabic and ratification in a UAE family court. Until this procedure is completed, assets, including real estate, remain frozen. In practice, this means that heirs may wait months before they obtain the ability to dispose of the object.

Step 7. Prevent Disputes Between Heirs

Inheritance disputes over real estate in the UAE arise when heirs disagree with the distribution, challenge the validity of the will, or one of the heirs occupies the object without the consent of the others. Typical grounds for a dispute: Challenge to the testator’s legal capacity at the time the will was made. An allegation of pressure from one of the heirs. Non-compliance of the will with formal requirements. Exceeding the one-third limit by a Muslim testator in the absence of heirs’ consent. Failure to account for the compulsory share of an heir under Sharia. A well-drafted will registered in DIFC or ADGM substantially reduces the risk of such disputes, since it applies predictable common law and excludes the application of Sharia compulsory shares for non-Muslims.

Common Mistakes in Inheritance of Real Estate in the UAE

1. Relying only on a will from the country of citizenship. A foreign will does not operate automatically in the UAE. Without legalization and ratification, it does not give heirs the right to dispose of the object. 2. Not registering a will at all. In the absence of a registered will, the fallback order applies: for non-Muslims — 50/50 to the spouse and children, for Muslims — Sharia shares. The testamentary intention is not taken into account. 3. Failing to take into account the one-third restriction for Muslims. Disposition of more than one-third of the estate without the consent of the heirs is invalid in the relevant part. 4. Including real estate outside a freehold zone in the will. Such a disposition cannot be enforced, since foreigners are not entitled to own such real estate. 5. Not appointing an executor of the will. Under the DIFC and ADGM regimes, the presence of an executor accelerates probate and reduces the risk of conflict between heirs. 6. Not checking the relevance of the will. A change of citizenship, marital status or composition of assets requires revision of the will. 7. Ignoring the issue of guardianship over minors. A will can and should include provisions on a guardian, especially if the children reside in the UAE.

Checklist for a Real Estate Owner in the UAE

1. Which category of testators do you belong to — Muslim or non-Muslim? 2. In which emirate is the real estate located? 3. Is the object located in a designated freehold zone? 4. Do you have a valid registered will? 5. In which registry is it registered? 6. Does the will comply with the requirements of the chosen registry? 7. Is an executor of the will designated? 8. Are provisions on guardianship included if there are minor children? 9. Are the restrictions for Muslim testators taken into account? 10. Has the will been reviewed after the most recent change in marital status? 11. Do the heirs know about the existence of the will and its location? 12. Are the documents for probate ready: death certificate, identification documents, title documents for the real estate?

FAQ

Can I bequeath real estate in the UAE if I am not a resident?

Yes. Non-residents who own real estate in a freehold zone may draft and register a will in DIFC or ADGM through the virtual registry without coming to the UAE.

Does my will made in my own country apply in the UAE?

It may be recognized, but only after notarization, legalization at the UAE embassy, translation into Arabic and ratification in a UAE family court. This process takes time, and until it is completed, assets are frozen.

What will happen to the real estate if there is no will?

For non-Muslims: half will pass to the spouse, half to the children in equal shares. For Muslims: distribution according to fixed Sharia shares. In both cases, the asset may be frozen until the court procedure is completed.

Is inheritance tax payable in the UAE?

No. The UAE does not levy inheritance tax or estate tax. The only mandatory payment is the state fee for registration of transfer of ownership in the amount of 4% of the property value.

Can a will be changed after registration?

Yes. A will may be amended or revoked by making a new will or a codicil. The new will must be registered in the same registry.

What is more important: registering a will or finding a good lawyer?

For inheritance planning in the UAE, both elements are important. A will provides legal certainty; a lawyer provides the correct choice of registry, the structure of the will and protection against challenge.

Conclusion

Inheritance of real estate in the UAE requires not a standard approach of “drawing up a will,” but the choice of the correct jurisdictional architecture. A strong position is built on understanding the applicable regime, choosing a competent registry, taking into account restrictions based on the type of real estate and the testator, and a pre-prepared probate plan. In matters of inheritance of real estate in the UAE, the winner is not the one who was the first to draw up a will. The winner is the one who understands in advance which court will enforce his or her wishes, which restrictions apply to his or her assets and how to avoid the freezing of real estate for heirs.