Inheritance tax constitutes a tax that entails significant reduction of substantial number of fortunes in various countries of the world. If case of inheritance such tax may constitute significant part of the total value of the assets.
Furthermore, this tax often forces to sell inherited assets. For example, the inherited estate includes a house or apartment, in some countries the inheritance tax shall be paid thereon, which may constitute significant percentage of the property value. If the heir has no funds available to pay this tax, he might have to sell the property in order to cover his tax obligations.
In order to optimize inheritance tax wealthy families try to find different solutions – establishment of family trusts, transfer of assets to companies, etc. On the other hand most countries are continuously altering terms of taxation of the estate in the direction of raising applicable taxes.
In the Emirate of Ras Al Khaimah, as well as in other Emirates of the UAE, the inheritance tax is not charged at all. This applies to any assets both in the country and abroad. If foreign national who inherited the assets is a tax resident in the UAE, he will be exempted from payment of inheritance tax.
