While other countries have been cautious about opening their borders, the UAE has opened its doors to investors and relocants worldwide, leading to an unprecedented boom in the real estate market. It’s February 2025, so the previous year’s numbers can guide us at this stage.
Statistics are impressive: Only in October 2024 were more than 20,000 sales transactions concluded in Dubai — an absolute record in the emirate’s history. Real estate prices exceeded the historical maximum of 2014 by almost 20%, and the average cost of a new square meter reached $4,661. At the same time, the premium segment is showing awe-inspiring growth, as evidenced by more than 2,350 transactions worth over $4 million in the first 11 months of 2024.
In a country where 88% of the population comprises expats, the economy continues to grow at an impressive rate of over 4% per annum and the unemployment rate is steady at just 2.7%. Over 400,000 new jobs are created every year, attracting professionals from all over the world. There is no hiding the fact that the market is transforming: if before purely investment purchases prevailed, more and more people are buying real estate for permanent residence. Experts are divided on the future of the market. Some predict stabilization of prices due to the planned commissioning of more than 180 thousand new objects in 2025-2026, others confidently talk about continued growth of 7-8% per year. The forecasts for the luxury segment are optimistic – about 6.5 thousand people with capital over $1 million are expected to move to the country annually.
In this context, an intriguing question arises: what happens to the property of foreigners in the UAE after they pass away? Everyone in the CIS countries has heard the phrase “all the best for the children” at least once. And as a rule, they use it in the context of transferring square meters to the next generation.
In a country where Islamic law is intertwined with modern legislation, and the number of expat owners is growing exponentially, how are issues of real estate inheritance for foreign citizens regulated?
Fundamental rights of foreigners to inherit real estate in the UAE
The United Arab Emirates is a unique example of how traditional Islamic law can harmoniously coexist with modern international inheritance standards. Unlike European countries, where the inheritance procedure for foreigners often involves high taxes and bureaucratic hurdles, or Asian states, where there are strict restrictions on foreign ownership of real estate, the UAE has created a progressive system that considers the interests of international investors.
Read also: Housing cooperatives: how it works in the UAE.
Of course, concierge services in English become particularly important in the context of inheritance rights, as many foreign property owners rely on professional property management services to maintain the property until the rights are transferred to heirs.
In the United States, foreigners’ inheritance of real estate is subject to substantial taxation, which can be as high as 40% of the property’s value. In African countries, there are often severe restrictions on foreign ownership of real estate, and the inheritance process can drag on for years because of the imperfect legal system. Against this background, the UAE is favorably distinguished by the absence of inheritance tax and transparency of procedures.
Inheritance procedure for foreigners
The process of inheritance registration in the UAE has undergone significant changes with the adoption of new legislation in 2023. Inheritance for non-Muslims is now governed by a separate law, simplifying the procedure and making it more predictable. Naturally, the maintenance checklist for leased real estate becomes an important document when transferring property to heirs, as it allows assessing the object’s condition and the need for repairs.
When foreigners inherit real estate, the first step is to notify the court of the property owner’s death. Documents must be filed with the court of the Emirate where the property is located. It is important to note that all bank accounts of the deceased are immediately frozen—this is a standard procedure aimed at protecting the interests of all potential heirs.
To confirm the right of inheritance, an impressive package of documents is required, including:
- a death certificate legalized in the UAE consulate,
- documents proving kinship with the deceased,
- and, if available, a will.
All documents must be translated into Arabic and duly certified. Depending on the complexity of the case and the presence of disputes, the process of registering ownership can take several months to a year.
The probate legalization procedure requires attention to detail. A document drawn up according to international standards is translated into Arabic and certified at the consulate of the testator’s country. The process of registering ownership can take from several months to a year, depending on the complexity of the case and the presence of disputes.
The probate legalization procedure requires attention to detail. A document drawn up according to international standards is translated into Arabic and certified at the consulate of the testator’s country. The key point is recognizing the will in court and the UAE Land Department. Normal notarization is not enough.
A visit to the court will require:
- A valid resident visa
- Two Muslim witnesses
- Identification documents of all participants
- A receipt for payment of the fee (from AED 60)
Notably, the system exempts inheritance tax regardless of family ties. The only mandatory payment is a 4% registration fee when re-registering property rights. A legitimate question arises: How can the maximum protection of heirs’ rights be ensured in the complex interaction of different legal systems?
Legal aspects and the role of Sharia law
The influence of Sharia law on inheritance in the UAE remains significant, but modern legislation provides a special inheritance procedure for non-Muslims. Without a will, the new law stipulates that half of the estate goes to the surviving spouse and the other half is distributed equally among the children regardless of gender.
Sharia law applies to the inheritance of Muslim property, but non-Muslim foreigners can avoid its application by making a will. However, the will must be drawn up by local requirements and registered with the relevant authorities. Free economic zones such as DIFC and ADGM, where a system of law based on the so-called “common law,” is in force, play a special role.
Tips for protecting inheritance rights for foreigners
Let’s discuss how to maximize the protection of your inheritance rights when owning real estate in the UAE. First, it is strongly recommended that you draw up a will — this is a key document that will help avoid the application of Sharia law and ensure the distribution of property according to your will.
It is best to make a will through specialized lawyers familiar with the specifics of local law. It is essential to understand that a Russian or any other foreign will may not be recognized in the UAE, so the best solution is to draw up a local will considering all Emirati law requirements.
When making a will, it is necessary to specify the executor clearly — a mandatory requirement of local law. The executor will have broad powers to manage the inherited property and represent the interests of heirs in various instances.
Read also: The best real estate for students in Abu Dhabi.
Conclusion. I, Konstantin Lyutovich, co-founder of 20-88 Real Estate, have been observing for 14 years how the UAE legislation in the area of real estate inheritance for foreigners is evolving. This experience allows me to confidently state that with proper planning and compliance with all legal formalities, the inheritance process can be organized as efficiently and safely as possible for all participants.
Our team of professionals is ready to provide comprehensive support in inheritance planning, from advice on drafting a will to assistance in registering inheritance rights. We specialize in both premium and quality mid-range estates and are ready to help you protect the interests of your heirs.
Feel free to contact me personally with any questions you may have about real estate in Dubai. Together we can find the perfect investment property and ensure its safe transfer to future generations. Was this article interesting and useful? Want to learn more about the real estate market in the UAE? Subscribe to the website of Konstantin Lyutovich, co-founder of a real estate agency in Dubai, and get notifications about new publications.
