Inheritance and Estate Tax in United Arab Emirates

The United Arab Emirates imposes no inheritance tax, no estate tax, and no gift tax on individuals. PwC Worldwide Tax Summaries confirms: "There are currently no inheritance, estate, or gift taxes imposed on individuals in the United Arab Emirates." [1] Heirs receive UAE-sited assets free of any UAE succession transfer charge regardless of asset value, asset type (real estate, bank balances, listed shares, business interests), or the relationship between decedent and beneficiary.

That headline is clear. The practical complexity for expatriates lies not in taxation but in which succession law determines who receives those assets when no valid will is on record.

Does Sharia inheritance law apply to expatriates in the UAE?

Historically, UAE courts applied Islamic inheritance rules (Faraid) by default to all estates, including those of non-Muslim foreigners, because the UAE's personal-status framework was built on federal Islamic law. Under Faraid, shares are mathematically fixed: a widow receives one-eighth of the estate where children exist (one-quarter where none), a widower one-quarter (one-half where no children), each parent one-sixth, and sons take twice the share of daughters from the residual. A Muslim decedent may direct no more than one-third of the estate by will (wasiyya) to non-heirs; the remaining two-thirds follow Faraid automatically. [2]

For Muslim UAE residents and UAE nationals the Faraid framework remains the default under the Personal Status Law (Federal Law No. 28 of 2005 and its amendments). It is enforced through emirate-level Sharia courts and cannot be displaced by an ordinary civil will.

For non-Muslim expatriates the position changed materially in February 2023.

What does Federal Decree-Law No. 41 of 2022 mean for non-Muslim expats?

Federal Decree-Law No. 41 of 2022 on Civil Personal Status for non-Muslims entered force on 1 February 2023. [3] It created a completely secular succession default for non-Muslim UAE residents and nationals, displacing the earlier practice of applying Sharia rules in the absence of a will.

Under FDL 41/2022, when a non-Muslim UAE resident dies intestate (without a registered will), the estate distributes as follows:

• Surviving spouse: 50 % of the estate
• Children: the remaining 50 %, divided equally among all children regardless of gender
• No surviving spouse or children: estate passes to surviving parents or siblings

This is a substantive change: daughters receive the same share as sons, and no fixed religious fractions apply. Article 1 of the law also permits non-Muslim residents to elect the law of their home country to govern their estate, provided that election is made in a registered will. Federal Decree-Law No. 51 of 2024 (effective 1 January 2026) adds a further provision directing heirless non-Muslim estates to official UAE charities administered as a Waqf endowment, closing a gap that previously left estates with no qualifying heirs in an uncertain legal position. [3]

How can non-Muslim expatriates register a will in the UAE?

Despite the improved intestacy default under FDL 41/2022, registration of a will remains the most reliable way for a non-Muslim expatriate to control the distribution of UAE-sited assets. Two principal registration routes exist, plus the Dubai Courts as a third option.

DIFC Wills Service Centre (Dubai). Established in 2015 under Dubai Law No. 15 of 2017 and significantly strengthened by Dubai Law No. 2 of 2025, the DIFC Wills Service Centre offers six modular will types: Full Will (all assets globally), Property Will (up to five UAE real estate properties), Financial Assets Will (up to ten bank or brokerage accounts), Business Owners Will (up to five company shareholdings), Guardianship Will (minor children only), and Digital Assets Will (cryptocurrency). [4] Dubai Law No. 2 of 2025 grants DIFC-registered wills exclusive jurisdiction and direct enforcement for Dubai-sited assets: a DIFC probate order can be enforced directly with the Dubai Land Department, UAE banks, and the Roads and Transport Authority without separate recognition proceedings. Official registration fees range from AED 5,000 (Guardianship/Digital) to AED 10,000 (Full Will/Business Owners Will) for a single will; mirror wills for couples cost more. Legal drafting fees from a practitioner typically add AED 3,000 to AED 6,000. Eligibility requires: non-Muslim; age 21 or older; ownership of UAE assets or minor children residing in Dubai or Ras Al Khaimah. UAE residency is not required.

Abu Dhabi Judicial Department (ADJD). The ADJD offers a lower-cost, fully online alternative accessible to any UAE resident regardless of emirate. Registration is conducted via secure video conference (WebEx) with an ADJD notary. Official fees are AED 950 for a single will and AED 1,900 for mirror wills. [5] The will must be submitted in both English and Arabic; the Arabic text is the legally binding version. ADJD-registered wills carry nationwide validity across all seven emirates under FDL 41/2022. The ADJD has also confirmed that assets located outside the UAE may be included. A 2026 update confirmed that non-Emirati Muslim expatriates may now register civil wills through the ADJD to opt out of Sharia-based distribution.

Dubai Courts. A third route under Dubai Law No. 15 of 2017 allows registration directly with Dubai Courts rather than the DIFC, at lower official fees, though DIFC registration is more commonly used by English-speaking practitioners.

What are the practical steps for a foreign national?

Any non-Muslim expatriate owning UAE real estate, bank accounts, business shares, or other UAE-sited assets, or with minor children resident in the UAE, should consider the following steps:

1. Identify which UAE assets are registered and in which emirate.
2. Choose a registration route: DIFC Wills Service Centre for Dubai-centric estates or higher-value complexity; ADJD for a more affordable all-emirates option.
3. Engage a UAE-qualified estate lawyer or notary to draft the will in the required language(s) and confirm it satisfies execution formalities (two independent witnesses aged 21 or older who are not beneficiaries).
4. Register the will. DIFC allows in-person or virtual registration; ADJD registration is fully remote.
5. Notify the executor of the will's existence and storage location.
6. Review the will after any major life change (marriage, divorce, acquisition of new UAE assets, birth of a child) because marriage invalidates a DIFC will unless the intent to marry was expressly stated in the document.

For assets sited outside the UAE, execution of a UAE-registered will is subject to the laws of the jurisdiction where those assets are located. Cross-border estates require coordinated advice covering both UAE and foreign-jurisdiction rules.

Is there any gift tax or transfer tax in the UAE?

The UAE imposes no gift tax on individuals. Transfers of money or other assets during a person's lifetime carry no UAE tax liability for the recipient, and no reporting threshold triggers a UAE filing obligation. [1] The only transfer-related charges are property land-registration fees levied by individual emirates when real estate changes hands (for example, Dubai charges 4 % of the sale price as a land-registration fee); those fees are administrative registration charges, not a tax on wealth transfer.

One narrow exception applies in a business context: the Federal Tax Authority has noted that business gifts to a single recipient exceeding AED 500 in value within a twelve-month period may be treated as a taxable supply for VAT purposes. This applies to corporate gifting by VAT-registered businesses, not to personal gratuitous transfers between individuals.

Comparison: UAE estate-succession frameworks at a glance

For context on UAE residence and related filing considerations, see the United Arab Emirates country overview. Residents with cross-border estates should also review how their home-country inheritance or estate tax rules treat UAE-sited assets, as several jurisdictions (including the United Kingdom and the United States) may impose their own levies on a worldwide estate even when UAE levies nothing.

The rules governing UAE succession continue to evolve -- FDL 41/2022 was a major reform in 2023 and Dubai Law 2/2025 added further procedural clarity. Registering a will and reviewing it periodically with a qualified estate lawyer or a solicitor experienced in UAE law remains the most reliable course for any expatriate holding meaningful assets in the UAE.