Israeli Legal Guidance for United States Residents
Americans represent one of the largest groups of non-residents with Israeli legal matters — through inheritance, dual citizenship, property ownership, and family ties to Israel. The US–Israel relationship has unique legal dimensions: a bilateral tax treaty, FATCA reporting obligations, and a large diaspora community navigating Israeli inheritance and property from afar.
Guides & Articles
Confirming Israeli Citizenship by Descent: US Adults →
Many US-born adults are already Israeli citizens through a parent. How to confirm citizenship by descent at the consulate, the one-generation limit, and what it means for tax and the IDF.
Pre-Aliyah Tax Planning for Americans Moving to Israel →
How US citizens should plan taxes before aliyah: Israel's 10-year exemption, continued US filing, the PFIC trap on Israeli funds, and timing asset sales around residency.
Working Remotely From Israel: A US Citizen's Guide →
Can a US citizen work remotely from Israel on a tourist visa? What the B/2 allows, when Israeli tax kicks in, and the double social security trap.
US Investors and Israeli Mutual Funds: The PFIC Trap →
Why Israeli mutual funds and ETFs are PFICs for US citizens, how the punitive Section 1291 tax works, Form 8621 filing, and what to hold in an Israeli brokerage account instead.
Questions & Answers
Case Studies
How a US Retiree Avoided a Forced Sale of an Israeli Securities Portfolio →
A US person's Israeli bank demanded he liquidate a NIS 1.5M portfolio within weeks. How a Section 97(b2) exemption and a negotiated wind-down avoided a fire sale and Israeli tax.
The portfolio was wound down over six months on the client's own schedule, with no Israeli capital gains tax and roughly NIS 150,000 in wrongful withholding avoided, and the proceeds repatriated to the United States.
How a US Professor Secured an Israeli Work Visa for a University Post →
A US professor was told to enter Israel as a tourist for a two-year faculty post. Here is how we put him on a lawful B/1 work visa with permits for his family.
We had the university file for a B/1 expert permit, obtained the work visa in the United States, and arranged accompanying visas and insurance for his wife and two children, all before he flew.
How US Grandchildren Inherited a Haifa Estate Through Their Late Father →
A Haifa widower died without a will. Two of his heirs were minor grandchildren living in the US. Here is how their one-third share was secured under court supervision.
The succession order issued with the minors named as heirs, their combined one-third share was ring-fenced in a court-supervised guardianship account, and the apartment was sold with Family Court approval, all handled from the US by power of attorney.
United States-Specific Considerations
FATCA and Israeli Bank Accounts
All Israeli banks report accounts held by US persons to the Israeli Tax Authority, which forwards the information to the IRS under the Israel–US FATCA agreement. If you have or inherit an Israeli bank account, ensure you are filing FinCEN Form 114 (FBAR) and Form 8938 (FATCA) if applicable. Failure to report carries severe penalties — up to 50% of the account balance per year.
Apostille from US States
Documents issued by US state authorities (birth certificates, marriage certificates, state notarizations) are apostilled by the Secretary of State of that state — not the federal government. Federal documents (FBI background checks, federal court orders) are apostilled by the US State Department in Washington DC. Each document originates in a specific state and must be apostilled by that state's authority.
Estate Tax vs. Inheritance Tax
The US levies a federal estate tax on estates above approximately $13 million (2025 exemption) and some states have additional estate or inheritance taxes. Israel has no inheritance tax (abolished in 1981). Non-resident estates involving both US and Israeli assets should be reviewed for potential US estate tax exposure on the Israeli assets, though the US–Israel tax treaty's limited estate tax provisions apply.
Common Challenges
- FATCA reporting on Israeli bank accounts — US persons must report foreign accounts exceeding $10,000 on the FBAR (FinCEN 114)
- Applying the US–Israel tax treaty to reduce Israeli withholding on dividends and interest
- Coordinating apostille across different states — each US state has its own Secretary of State office
- Filing Form 3520 when receiving large Israeli inheritances (reporting obligation, not a tax)
- Claiming the Foreign Tax Credit on US returns for Israeli capital gains or income tax paid
Quick Reference
Secretary of State of each US state (for state documents); US State Department (for federal documents)
✓ Yes — The US–Israel Income Tax Convention (1975, in force 1995) covers income tax. A Totalization Agreement for Social Security has been in force since 2016.
Israeli banks report accounts held by US persons to the IRS under FATCA. Ensure FBAR (FinCEN 114) and Form 8938 compliance.
Other Country Guides
Ready to Speak with an Israeli Attorney?
Consultations are conducted in English — by phone, WhatsApp, or video call — from anywhere in United States. No need to travel to Israel.
⚡ WhatsApp replies within a few hours · Confidential · English-speaking attorneys