Azerbaijani Family $80M: Real Estate Portfolio Diversification

Background

Azerbaijani family, $80M in real estate: residential and commercial properties in Dubai and Abu Dhabi ($45M), apartments and villas in France, Spain and Switzerland ($35M). Four adult heirs, all with Azerbaijani citizenship, two UAE-resident, one in Switzerland, one in the UK. Existing structure: direct personal ownership of all properties.

The Challenge

Direct personal ownership created three issues. First — UAE assets were potentially subject to Sharia succession (applied to UAE-situated assets absent a specific jurisdiction designation). Second — European real estate fell under each country's estate tax: France up to 45%, Spain up to 34%, Switzerland varying by canton. Third — lack of centralized management, each asset requiring separate administration and raising operating costs to 2.1% per year.

The Solution

1. RAK ICC Foundation owning UAE properties through a subsidiary IBC — fully bypasses Sharia succession
2. Luxembourg SOPARFI as intermediate holding for European real estate — leverages the EU treaty network and reduces estate tax via corporate ownership
3. Swiss holding for Swiss real estate — cantonal tax specifics require local presence
4. Centralized management company in RAKEZ: single administration point, operating cost reduced from 2.1% to 0.7%
5. Foundation regulation: 4 equal heir shares, with income distribution adjusted to each one's needs

Structures Used

• RAK ICC Foundation
• RAKEZ IBC
• Luxembourg SOPARFI
• Swiss Holding AG
• Management Company

Outcomes