5 ways Foreigners can protect their Property in Dubai
If you are a foreigner in the UAE and have property or assets, you need to plan a lifetime strategy to protect them. Sharia law will apply to your property if you are local, meaning your loved ones will not be able to get an advantage, which could leave them subject to financial adversity. If you are an expatriate having off-plan properties in Dubai, you need to protect your assets through a strategy.
There are five primary ways for protecting assets and property in Dubai:
- A DIFC Will
- An Abu Dhabi Will
- Gifting of Property
- Transferring the possessions to a holding company or trust
- Foundations
All these require investment in lawful advice to confirm they are set up properly. However, once these are in place, and you have a connection with an advisor who you can work over the long-term to accomplish changes in your situation, you can relax knowing your UAE off-plan properties in Dubai are well protected.
Though we have highlighted this fact numerous times, it is worth repeating. If you die without a Will in the UAE, your property will be distributed according to Sharia law where the distribution of your assets is fixed.
Further, a mother does not automatically attain guardianship of her children if their father dies in the UAE without a Will.
Let us look briefly at the ways of protecting your property and assets in Dubai. The Six Senses Dubai is an example of innovative architecture. It is providing homage to the contours and elevations of the region’s landscape, unique heritage, and an unquenchable thirst for progress. If you have a residence in the Six Senses Dubai as an expat you must have to protect your assets in this marvelous project.
A DIFC Will:
The DIFC Wills Service Centre allows non-Muslim expats to produce Wills under parallel laws to the jurisdiction of England and Wales and offers for testamentary freedom rather than the enforced heirship government under Sharia law.
As long as you are over 21 years Non-Muslim, and have assets in the UAE, you can register a DIFC Will.
You will require a DIFC registered Wills planner to generate your Will. Not only will registering a DIFC Will permit you to transfer your assets as you desire, but the validation procedure is also simple and more operative than that which applies to non-DIFC Wills.
Abu Dhabi Wills:
The Abu Dhabi Courts Judicial Department has produced the Abu Dhabi Wills Registry. Developing to deliver a choice for non-Muslims with property in Abu Dhabi/UAE or children to opt-out of Sharia law and register their other desires.
The Abu Dhabi Wills Registry is a significant development for non-Muslim expatriates. Document the desires when it is confirm and register with peace of mind. Make sure it is according to the Sharia values which will not apply to their Abu Dhabi property.
Gifting:
You can transfer assets or property as a gift. However, you will need to follow the strict legitimate process.
You can only gift your property to your spouse or children. Although you will need to pay registration charges, you will save money on the transfer fee.
Placing the possessions in a holding company or a trust:
Off-plan properties in Dubai and assets can be transferred into a holding company or a trust which removes it from your ownership.
A holding company is a separate legal entity. You can become the main shareholder in the company. It means you still have control over the property or assets it holds.
Trust is better as a relationship. A trust can be set up to protect your property and assets for your spouse, children, and grandchildren.
Foundations:
As the UAE is a civil law jurisdiction, it offers the setting up of Foundations. Foundations have authority entities that can hold wealth and assets on behalf of recipients. Investors or residents of the UAE can organize their possessions through a Foundation. There are several benefits of a DIFC or ADGM Foundation, comprising:
- No corporation tax
- Solid governance structure
- The founders and beneficiaries’ identities remain confidential
- Low set up costs
Foundations must have a council to administer the property and possessions, and action the objectives stated in the Foundation documents.
In summary:
By having a DIFC Will, gifting possessions, placing them in a trust, you will ensure that as an expatriate living in the UAE, your wealth is safe. A proficient private client Advocate can assist you in setting up the best way to defend your off-plan properties in Dubai while you are residing in the region.