Inheritance issues and tax in Dubai
There are a number of elements to buying property overseas which could impact upon you but which you do not consider at the time. For example you need to find out the situation with regards to inheritance tax in Dubai and other issues relating to succession if you are buying properties in Dubai.
Is there inheritance tax in Dubai?
In keeping with the tax-free philosophy of the Emirate, there is no inheritance tax in Dubai. This is a huge bonus for those buying properties. Dubai attracts buyers for precisely this reason and your legacy will be protected from tax in Dubai.
If there is no inheritance tax in Dubai, what am I worried about?
The inheritance of properties in Dubai is covered by Shariah Law, which stipulates that, in the event of a man’s death, property passes to the eldest son. A wife is passed over, even if the properties in Dubai are jointly owned.
If you are a resident of the UAE, then getting a local lawyer will may be one way of sidestepping this issue. Another option is to purchase properties in Dubai through an offshore company in order that shares be inherited as you set out in your will. Always seek legal advice about this matter before proceeding to buy properties in Dubai.
There may not be inheritance tax in Dubai to worry about but you should not underestimate the complications that other local inheritance issues can cause. When buying properties, Dubai’s local customs and laws must be taken into consideration.
