UAE Law and Practice Contributed by: Ildar Yuvakaev, Ruslan Akhmetov, Olga Serova and Daiana Ubushaeva, Consigliere Group
holding structures to reduce reliance on the statutory succession regime. 9.3 Cohabitation and Unmarried Couples Unmarried couples (including cohabiting partners) are not treated as a legally recognised family unit. Cohabi - tation, regardless of the duration or stability of the relationship, does not in itself give rise to spousal or equivalent legal rights and obligations. In particular, cohabitation does not create maintenance obliga - tions, inheritance rights or any presumption of shared ownership of assets acquired during the relationship. For tax purposes, cohabiting partners are treated as separate individuals and are taxed independently on their own income. They do not benefit from certain spousal privileges, including reduced registration fees applicable to qualifying transfers of Dubai real estate between spouses and first-degree relatives, or the ability to sponsor each other’s residence visas. From a succession planning perspective, unmarried partners do not have automatic inheritance rights equivalent to those of a spouse. In the absence of a valid will, inheritance is determined strictly in accord - ance with Federal Decree-Law No 41 of 2022 for non- Muslims and Personal Status Law No 41 of 2024 for Muslims. For non-Muslims, a registered will may be used to leave the entire estate to an unmarried part - ner. For Muslims, a will may generally leave up to one third of the estate to a person who is not a legal heir, subject to Sharia principles. Therefore, individuals may implement succession and asset planning through a combination of mechanisms, including a valid will, beneficiary nominations, con - tractual arrangements governing property and finan - cial matters during their lifetime and, where appro - priate, wealth structuring vehicles such as DIFC or ADGM foundations.
ning in the UAE is primarily relevant for corporate tax efficiency. Qualifying Public Benefit Entities (QPBEs) Entities may apply to the Ministry of Community Development to be included in Cabinet Decision No 37 of 2023 and obtain the status of a Qualifying Public Benefit Entity (QPBE), which is exempt from corporate tax. To qualify, an entity must be: • established and operated exclusively for public benefit purposes; or • operated as a professional entity or chamber of commerce exclusively for the promotion of social welfare or public benefit. In addition, the entity must meet the conditions under Article 9 of the Corporate Tax Law. Tax Relief for Donors For corporate tax purposes, a company may claim a deduction for donations only where the donation is made directly to an entity listed in Cabinet Decision No 37 of 2023. Therefore, donations, grants, or gifts made to organisations that are not QPBEs are not deductible for corporate tax purposes. Waqf UAE law also recognises waqf (Islamic endowment) structures as a versatile legal tool that can serve chari - table, familial, or combined purposes. Unlike a direct donation, a waqf is primarily used for asset preserva - tion, long-term governance, and succession planning rather than tax-deduction benefits. 10.2 Common Charitable Structures The structure of charitable organisations holds con - siderable importance in the UAE for both corporate tax efficiency and estate planning. Charities can be set up in a variety of legal forms, including as a public benefit association, a waqf or a free zone foundation (DIFC/ADGM/RAK ICC). Public associations are member-based non-profit organisations licensed by the relevant authorities. A waqf allows individuals or entities to dedicate assets
10. Charitable Planning 10.1 Charitable Giving
Due to the absence of personal income tax and the introduction of a 9% corporate tax, charitable plan -
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