Israeli Law Q&A for United Kingdom Residents

It can, in two directions. Spending more days in Israel reduces your UK day count, which under the Statutory Residence Test may push you toward becoming UK non-resident, especially if you also cut your UK ties. At the same time, extended time in Israel can make you Israeli tax resident under the 183-day and 425-day presumptions, so you risk being resident in both places. Where that happens, the UK-Israel tax treaty tiebreaker decides which country wins. Both day counts need watching, not just one.

You can, but Israel will not tax the discounted price you agree. Under the Real Estate Taxation Law 1963, a sale or gift between relatives is assessed on the full market value set by the Israel Tax Authority, so the betterment tax (mas shevach) is calculated as if you sold at market. A gift to a child can qualify for reduced or nil purchase tax for them, but on the UK side HMRC also treats a disposal to your child as made at market value, so you may face UK capital gains tax with a credit for the Israeli tax.

It can. The UK's transfer of assets abroad rules in the Income Tax Act 2007 can attribute the income of an Israeli company to a UK-resident individual who set it up and has the power to enjoy that income, even before any dividend is paid, unless a genuine-commercial motive defence applies. A separate risk is that an Israeli company run day-to-day from the UK becomes UK tax resident by its central management and control. The UK-Israel double-tax treaty then relieves double taxation, but it does not switch off UK charging rules.

Israel does not recognise the ISA wrapper, so it looks straight through to the dividends, interest, and gains inside it. If you make aliyah or return as an Israeli resident, Section 14 of the Income Tax Ordinance 1961 exempts that foreign income for your first ten years, so your ISA is effectively untaxed in Israel during that window. After the ten years, the ISA loses all shelter in Israel and its income becomes taxable at Israeli rates of 25% to 30%, even though the UK still treats it as tax-free.

The apostille itself costs GBP 45 per document through the FCDO Legalisation Office standard postal service, or GBP 75 for the premium same-day route used by registered businesses and agents. Add solicitor or notary fees where a document must be notarised first, often GBP 50 to 150, and a Hebrew certified translation in Israel of roughly NIS 200 to 500 per document under the Notaries Law 1976. Both the United Kingdom and Israel are parties to the Hague Apostille Convention, so no consular legalisation is needed on top.

Generally no, for the work you do physically in the UK. Israel taxes a non-resident only on Israeli-source income, and under Section 4A of the Income Tax Ordinance 1961 employment income is sourced where the work is performed, so pay for work done from Britain is UK-source and outside Israel's reach. The UK-Israel tax treaty confirms UK taxing rights. The exception is days you physically work inside Israel, which can become Israeli-source income and also count toward the 183-day residency test.

Not automatically. An England and Wales Lasting Power of Attorney is a foreign document, and Israeli banks and the Land Registry frequently refuse it even when it is apostilled and translated. For acting on Israeli assets, an Israeli notarised power of attorney, or the Israeli continuing power of attorney under the Legal Capacity and Guardianship Law 1962, is usually required. The safe step is to put an Israeli power of attorney in place before capacity is lost.

Yes. Since 2025 Israel requires an Electronic Travel Authorization, the ETA-IL, from visa-exempt travellers including UK citizens, and it must be held before boarding. It costs NIS 25, is usually approved within 72 hours, and stays valid for two years or until the passport expires, allowing tourist stays of up to 90 days per entry. It is not a visa; admission is still granted at the border officer's discretion under the Entry into Israel Law 1952, and dual Israeli citizens are exempt.

No. The remittance basis for non-doms was abolished from 6 April 2025 and replaced by the residence-based Foreign Income and Gains (FIG) regime. Only individuals in their first four years of UK residence after ten consecutive non-resident years can elect to exempt qualifying foreign income and gains; a settled UK resident is now taxed on Israeli income and gains as they arise, worldwide. Israel still taxes Israeli-source income at source, and relief comes through Foreign Tax Credit Relief under the UK-Israel treaty, not by keeping the money out of the UK.

It can. A company is UK tax resident if it is incorporated in the UK or if its central management and control is exercised there, so an Israeli company whose real decisions are taken in London risks being treated as UK resident on its worldwide profits. Israel meanwhile treats a company as resident if it is incorporated in Israel or controlled and managed from Israel. Where both countries claim it, the UK-Israel tax treaty tiebreaker in Article 4 decides residence by place of effective management. Getting this wrong can mean tax in both systems.

Usually not on its own. Israeli banks, the Land Registry and most authorities will not act on a UK Lasting Power of Attorney, because it is drafted to English law and registered with the Office of the Public Guardian, not in the form Israeli law expects. You will normally need a separate Israeli-law power of attorney (*yipui koach*), signed before a notary, apostilled if executed in the UK, and for ongoing incapacity an enduring power registered with Israel's Administrator General.

No. The United Kingdom permits dual nationality, so acquiring Israeli citizenship through aliyah does not cause you to lose your British citizenship. Israel also allows dual nationality for olim under the Law of Return. You keep your British passport, but you become Israeli in Israel's eyes, which changes consular protection and other practical rights. Giving up British citizenship requires a deliberate renunciation through the Home Office.