Insights · AXD Real Estate Dubai
DIFC Will Dubai Property — Inheritance for
How is a Dubai property of German owners inherited?
Without a registered will, the Dubai court for non-Muslims generally applies the inheritance law of the home country under UAE Federal Decree-Law 41/2022. In practice, a will registered with the DIFC Wills Service Centre is recommended for DACH owners — common-law freedom of disposition without Sharia forced-heirship constraints, recognized by Dubai and RAK courts.
Inheritance law options for non-Muslim DACH owners
| Option | Legal basis | Cost |
|---|---|---|
| DIFC Single Will | DIFC Wills Rules 2017 | 10,000 AED |
| DIFC Mirror Will (married couple) | DIFC Wills Rules 2017 | 15,000 AED |
| Personal Status Law Non-Muslims | UAE Federal Decree-Law 41/2022 | Court fees |
| No will (default) | Home-country law / in case of dispute Sharia | Highest dispute risk |
What DACH owners should consider
DIFC will plus German will — the DIFC will covers the UAE assets, the German will the rest. Both must be free of contradictions.
Probate proceedings accelerated — a registered DIFC will reduces the transfer procedure to typically 4 – 12 weeks instead of 6 – 24 months in contested succession.
Bank balances separate — UAE bank accounts are frozen upon death until probate is available. Joint accounts with a survivorship clause help.
Visa implications — residence visas of dependent family members lapse upon the death of the sponsor; special rules apply under Golden Visa sponsorship.
Related: Golden Visa Dubai through real estate investment.
Inheritance tax aspect
The UAE levies neither inheritance nor gift tax. German ErbStG (Inheritance and Gift Tax Act) nevertheless remains fully applicable to German testators and heirs — the Dubai property must be declared as foreign assets. Allowances under §16 ErbStG (spouse 500,000 EUR, children 400,000 EUR) apply unchanged.
Sources
UAE Federal Decree-Law No. 41 of 2022 — Civil Personal Status Law for Non-Muslims
DIFC Wills Service Centre — Rules of the Wills Service (2017, updated 2023)
EU Succession Regulation No. 650/2012 — applicable law and choice of law
German Inheritance and Gift Tax Act (ErbStG) §§ 1, 2, 16
Note: Inheritance law questions are highly dependent on the individual case. This article is not legal advice. For the creation of a DIFC will or the coordination with a German will, the involvement of a DIFC-licensed lawyer and a German specialist lawyer for inheritance law is required.
← Back to Insights
