# What happens if I die in Dubai without a Will?



## Lukewalker (Feb 19, 2008)

I am a British Expat moving to Dubai and I am very concerned that if I die my assets will be distributed in accordance with Muslim Sharia Law. 

This Sharia Law is very different from the law of the United Kingdom. 

I have been advised by several people that the best company to make my will is Expatriate Wills based in Dubai. People I know that have used them to prepare their wills have told me they are experts in will writing for British Expats residing in Dubai and they have over 15 years experience.

Can anyone tell me if they have used Expatriate Wills?


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## Geordie Armani (Jan 24, 2008)

do a search on Jim Berry Associates in Dubai.


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## Elphaba (Jan 24, 2008)

If you die in the UAE without a will, any assets that you hold here will be subject to Shariah Law in terms of distribution. Generally assets that you hold elsewhere, including offshore, are subject to UK inheritance rules. 

Many Brits do not realise that on death their worldwide assets are subject to inheritance tax, above the standard allowances/exemptions.

You can have a will written whilst you are in Dubai and your lawyer will assist you in having it authenticated by the British Embassy. 

Please send me a personal message if you want a proper referral, as I deal with these matters on a regular basis


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## Pasanada (Feb 5, 2008)

I have a will in Spain - my "worldwide" assets are solely in that country. Would it be applicable under Spanish law if I were to die in the Middle East?

Confused!!!


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## Stravinsky (Aug 12, 2007)

Pasanada said:


> I have a will in Spain - my "worldwide" assets are solely in that country. Would it be applicable under Spanish law if I were to die in the Middle East?
> 
> Confused!!!



Where is your tax residency Pasanada ....... I am assuming that you are Spanish citizen?


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## Pasanada (Feb 5, 2008)

Hi Stravinsky,

I'm a British passport holder but a fiscal resident of Spain (have resided here for over 4 years) I spoke to my Gestor this week and I can have my salary from Dubai paid into my Spanish bank account but as I will be out of the country for more than 183 days, I'll no longer be on the Social Security system although I will still be liable for taxes relating to my property here.

Hope that makes sense!!


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## Stravinsky (Aug 12, 2007)

Pasanada said:


> Hi Stravinsky,
> 
> I'm a British passport holder but a fiscal resident of Spain (have resided here for over 4 years) I spoke to my Gestor this week and I can have my salary from Dubai paid into my Spanish bank account but as I will be out of the country for more than 183 days, I'll no longer be on the Social Security system although I will still be liable for taxes relating to my property here.
> 
> Hope that makes sense!!


OK, if you are a registered resident of Spain then that normally means your worldwide assets are subject to wealth tax & your worldwide income is subject to Spanish income tax. IHT is payable in Spain at horrendous rates, although if you leave your estate to another Spanish resident then it can be cut in some areas to 1% .... terms and conditions apply  However if you were to leave it to, say, your children in the UK then they are well and truly stuffed on IHT.

As regards your salary, I do know of people who have salaries from other countries paid into their Spanish accounts. As I understand it, it is _still_ subject to Spanish income tax but if tax is taken in Dubai at source then that can be deducted from your Spanish tax return.


However if you have a clever Gestoria then they can often find all kinds of ways around things


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## Stravinsky (Aug 12, 2007)

Stravinsky said:


> OK, if you are a registered resident of Spain then that normally means your worldwide assets are subject to wealth tax & your worldwide income is subject to Spanish income tax. IHT is payable in Spain at horrendous rates, although if you leave your estate to another Spanish resident then it can be cut in some areas to 1% .... terms and conditions apply  However if you were to leave it to, say, your children in the UK then they are well and truly stuffed on IHT.
> 
> As regards your salary, I do know of people who have salaries from other countries paid into their Spanish accounts. As I understand it, it is _still_ subject to Spanish income tax but if tax is taken in Dubai at source then that can be deducted from your Spanish tax return.
> 
> ...


Oh and btw, its important to have both a Spanish and UK will if you have assets in both countries


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## Pasanada (Feb 5, 2008)

Thanks for your reply. However, my worldwide assets are in Spain only so no need for a UK will.

I won't be taxed in Dubai and as I will be out of Spain for longer than 183 days, I won't be liable for Income Tax either. Wealth tax on worldwide assets is only appicable to foreigners NOT resident in Spain but who own property there.

I will seek further clarification on this matter with my Abagado/Gestor.


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## Stravinsky (Aug 12, 2007)

Sorry Pasadena, wealth tax _is_ applicable to residents _and _to non residents who own property in Spain.

If you are a resident you get quite good allowances though which can amount to €4 0r 500,000 for a couple.



Pasanada said:


> Thanks for your reply. However, my worldwide assets are in Spain only so no need for a UK will.
> 
> I won't be taxed in Dubai and as I will be out of Spain for longer than 183 days, I won't be liable for Income Tax either. Wealth tax on worldwide assets is only appicable to foreigners NOT resident in Spain but who own property there.
> 
> I will seek further clarification on this matter with my Abagado/Gestor.


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## Elphaba (Jan 24, 2008)

Pasanada said:


> Thanks for your reply. However, my worldwide assets are in Spain only so no need for a UK will.
> 
> I won't be taxed in Dubai and as I will be out of Spain for longer than 183 days, I won't be liable for Income Tax either. Wealth tax on worldwide assets is only appicable to foreigners NOT resident in Spain but who own property there.
> 
> I will seek further clarification on this matter with my Abagado/Gestor.


This is incorrect - as are comments in previous posts. The liability to UK tax on worldwide asses does not depend on your tax status, but on your domicile. This rarely, if ever changes. If you were born in the UK and have a UK passport you will be UK domiciled


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## Stravinsky (Aug 12, 2007)

Elphaba said:


> This is incorrect - as are comments in previous posts. The liability to UK tax on worldwide asses does not depend on your tax status, but on your domicile. This rarely, if ever changes. If you were born in the UK and have a UK passport you will be UK domiciled


I'm really sorry Elphaba but if you are resident in Spain then after 6 months you become subject to Spanish tax. You are subject to Spanish tax laws. You can of course carry on paying tax in the UK, but if the Spanish tax authorities catch up with you then you have to pay _them_, and then re claim from the UK. This is correct as per info given by the UK tax authorities, Spanish tax authorities, and local Gestorias, and afaik it is true of every EU country. The only real exception is Government pensions, which by EU agreement are taxed at source in the UK. State pensions are taxed in country of residence.


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## lawexpert (Feb 21, 2008)

*Try Expatriate Wills based in Dubai*

You should ask Expatriate Wills based in Dubai, they have over 15 years experience in will writing for British Expats. 

I am a British expat with legal experience living in Dubai and they helped me prepare my Will to comply with Muslim Sharia law. 

They also make sure your will complies with UK law as the Inland Revenue calculate Inheritance Tax (IHT) based on your worldwide assets. 

(SNIP)


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## Pasanada (Feb 5, 2008)

Along with the Personal Income Tax, Spanish residents and non-residents property owners are also liable to Wealth Tax (Impuesto sobre el Patrimonio). They should declare for both taxes at the same time. 

Wealth tax is a direct tax levied on your assets and property located in Spain as at 31st December of every year. 

Provided that taxpayers' principal wealth is normally their home, most of resident taxpayers do not pay this tax as the first € 108,182.18 is exempted. However, non-resident property owners are always taxed on their assets located in Spain (car, houses, bank accounts etc…) 

The value of the house to be declared is the official catastral value which can be found on any I.B.I receipt, the amount you have deposited in a Spanish bank is the average cleared balance over the previous year. 

Tax Rates are progressive depending on the type of property, ranging from 0.20 to 0.50% according to the Spanish law applicable; national or regional law. 

These are only general guidelines, it is suggested that all technical and legal matters pertaining to taxes be referred to professionals for advice, guidance and execution

Hope that clears up any ambiguity, Stravinsky!


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## Pasanada (Feb 5, 2008)

Elphaba said:


> This is incorrect - as are comments in previous posts. The liability to UK tax on worldwide asses does not depend on your tax status, but on your domicile. This rarely, if ever changes. If you were born in the UK and have a UK passport you will be UK domiciled


Sorry, but that information is incorrect. I am a full time resident of Spain but with a British passport. I have been paying into the Spanish Tax System and therefore am NOT liable to be taxed by the British Govt. I have my Fiscal number (NIE) and a Social Security number. I have no assets in the UK nor am I employed by a British company.

I am domiciled in Spain, not the UK.


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## Stravinsky (Aug 12, 2007)

Pasanada said:


> Along with the Personal Income Tax, Spanish residents and non-residents property owners are also liable to Wealth Tax (Impuesto sobre el Patrimonio). They should declare for both taxes at the same time.
> 
> Wealth tax is a direct tax levied on your assets and property located in Spain as at 31st December of every year.
> 
> ...


Thanks for that, and I know now we are discussing this on the wrong forum 
But the wealth tax IS payable on worldwide assets .... My UK assets are taken into consideration when calculating as well as Spanish.... but as I (and you) mention, the allowances are so high that you need to be worth something to pay it


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## Pasanada (Feb 5, 2008)

Blimey! I thought I was the only person on here tonight!! haha! 

Well, the info I quoted came from a Spanish lawyer.......but as you know, everything in Spain is as clear as mud!!! 

Apologies to the author of this thread for making it drift away from the original question.


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## Amelie (Feb 23, 2008)

Lukewalker said:


> I am a British Expat moving to Dubai and I am very concerned that if I die my assets will be distributed in accordance with Muslim Sharia Law.
> 
> This Sharia Law is very different from the law of the United Kingdom.
> 
> ...



Here is the very latest Luke I hope this helps 


Xpress: News | What will you leave for <br>your grieving family?


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## Elphaba (Jan 24, 2008)

Pasanada said:


> Sorry, but that information is incorrect. I am a full time resident of Spain but with a British passport. I have been paying into the Spanish Tax System and therefore am NOT liable to be taxed by the British Govt. I have my Fiscal number (NIE) and a Social Security number. I have no assets in the UK nor am I employed by a British company.
> 
> I am domiciled in Spain, not the UK.



WRONG. If you have a British passport, were born in the UK and are British you are legally domiciled in the UK. Domicile is totally different from residency.

If anyone is Britsh domiciled they are subject to British Inheritance Tax on worldwide assets - as I said earlier. I was not talking about income tax!!


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## Elphaba (Jan 24, 2008)

Stravinsky said:


> I'm really sorry Elphaba but if you are resident in Spain then after 6 months you become subject to Spanish tax. You are subject to Spanish tax laws. You can of course carry on paying tax in the UK, but if the Spanish tax authorities catch up with you then you have to pay _them_, and then re claim from the UK. This is correct as per info given by the UK tax authorities, Spanish tax authorities, and local Gestorias, and afaik it is true of every EU country. The only real exception is Government pensions, which by EU agreement are taxed at source in the UK. State pensions are taxed in country of residence.




SIGH - the initial post was about wills - my comment were about inheritance tax. I repeat - if you are UK domiciled (nothing to do with residency) you are subject to UK inheritance tax legislation on worldwide assets.

Income tax in an entirely different mater & the initial question was not about that.

I deal with these issues for a living!


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## Bevdeforges (Nov 16, 2007)

Not to leave this issue any clearer than when we started  but you have to take a look at the interplay between the residency and the nationality of the deceased. 

In France, if a UK national dies while resident in France, they come under French inheritance laws (and taxes) except for any real property (i.e. land and buildings) located in the UK (or elsewhere), which are subject to UK inheritance rules and taxes (or the property transfer laws of the country where the property is located).

I don't know why it would be any different in Spain - or in Dubai. It's the country you're resident in at death that gets to divvy up your estate and claim the taxes - except for land and buildings.

The easiest solution to the whole mess is just don't die! (Or arrange to spend everything down to nothing before you do.)
Cheers,
Bev


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## Amelie (Feb 23, 2008)

Lukewalker said:


> I am a British Expat moving to Dubai and I am very concerned that if I die my assets will be distributed in accordance with Muslim Sharia Law.
> 
> This Sharia Law is very different from the law of the United Kingdom.
> 
> ...



Here is the very latest Luke I hope this helps 

Xpress: News | What will you leave for <br>your grieving family?


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## Stravinsky (Aug 12, 2007)

Elphaba said:


> SIGH - the initial post was about wills - my comment were about inheritance tax. I repeat - if you are UK domiciled (nothing to do with residency) you are subject to UK inheritance tax legislation on worldwide assets.
> 
> Income tax in an entirely different mater & the initial question was not about that.
> 
> I deal with these issues for a living!



If you die in Spain, you are a British citizen but you are a Spanish Tax resident, then you are subject to Spanish Inheritence laws. This is 100% correct, I consulted a lawyer when we came here, one of neighbours has been through it.

I'm sorry to see you rool your eyes and sigh, but as you see from Bev as well, in France *AND* in Spain you are subject to those countries inheritence laws, there is absolutely no doubt of this.

So if you are saying that a British nationals estate who was residing in Spain, France, wherever will *not* be subject IHT in those countries on death, then I'm afraid you are quite quite wrong


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## Pasanada (Feb 5, 2008)

I don't wish to get into an argument over this but I will state that ALL my taxes are paid to the Spanish Govt, Income Tax included but not exclusive, there are many taxes to pay if you own a property here. I do not have ANY assets in the UK and have checked with the UK Tax authorities over this matter. You CANNOT be taxed in both countries.

My Will is a Spanish one stating all my worldwide assets. Should I die whilst still owning property etc, then my will is dealt with according to Spanish law and NOT British law although as a foreign resident, I'm not subject to the same rule regarding the distribution of my wealth to my children.

I appreciate you may do this for a living but I have lived here for some time and have taken advice from both the UK and Spanish authorities.

I hope this is the end of this matter now and I will reiterate to the orignal poster my apologies for the thread drift. I simply wanted to know where I stood with a Spanish will if anything were to happen to me in Dubai.


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## Amelie (Feb 23, 2008)

Isn't anybody interested in the OP?

Maybe the information needed could get lost "wood for the trees"


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## Elphaba (Jan 24, 2008)

*This is the Dubai forum*. The original post was regardng wills and IHT in the UAE.

Ignoring the comments regarding Spain & France above - I confirm that anyone who is British domiciled (NOT the same as resident!) is subject to UK Inheritance tax on death on worldwide assets. I have made no reference yet to _dual taxation agreements _as these matters are not as simple as certain posters seem to think. Those with a partial understanding should think twice before commenting as other people's situations are not the same as theirs.

The United Arab Emirates does (yet) have any personal taxes. This means that for anyone who is British domiciled their assets, whether in the UAE, the UK or offshore are subject to inheritance tax.


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## Amelie (Feb 23, 2008)

Lukewalker said:


> I am a British Expat moving to Dubai and I am very concerned that if I die my assets will be distributed in accordance with Muslim Sharia Law.
> 
> This Sharia Law is very different from the law of the United Kingdom.
> 
> ...


*Original Post*

*Original Title* What happens if I die in *Dubai* without a Will?

I wonder if Lukewalker will trawl through several long posts that actually relate nothing to his question.


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## Geordie Armani (Jan 24, 2008)

no one ever comes back to this forum! it drives me nuts, spending time answering their questions to get no feedback at all!


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## Amelie (Feb 23, 2008)

I find it basically good but a mishmash on some threads like this one where it has been totally hijacked by something that is no longer elevant to the OP. Maybe that is why people do not come back because they cannot find the relevant replies  

Somebody direct theses posters to the Spanish section


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## faz121 (May 11, 2009)

*will writting in dubai,recomendations*

hi
am wanting to get a will set up in dubai next week
any recomendtions and price ranges
i just want to include some properties that i have
cheers


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## Elphaba (Jan 24, 2008)

faz121 said:


> hi
> am wanting to get a will set up in dubai next week
> any recomendtions and price ranges
> i just want to include some properties that i have
> cheers


If you search you will see that I have given quite a lot of advice regarding wills.

My company offers a comprehensive will writing service. Once you have five posts the Personal Message service will activate and we can make contact.

-


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