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
Israeli Licence for US Physical and Occupational Therapists →
How US physical and occupational therapists get licensed in Israel under the Health Professions Law 2008: the residency rule, the Section 9 permit and the exam.
Complaining About an Israeli Bank From Abroad →
A US account holder's guide to complaining about an Israeli bank: the ombudsman's 45-day deadline, the Bank of Israel Public Enquiries Unit, and its limits.
Israel's 2026 Aliyah Tax Reforms: What Changed →
Two 2026 changes rewrote the new-immigrant tax deal: a new exemption on Israeli earned income and the end of the reporting exemption. What US olim need to know.
Interested-Party Deals in a Private Israeli Company →
How Chapter Five of the Companies Law approves a self-dealing transaction in a private Israeli company, and a US shareholder's remedy when it is skipped.
Questions & Answers
Case Studies
How a US Company Closed an Israeli Data Breach File Without a Fine →
A Denver retailer's vendor leaked 38,000 Israeli customer records. Israeli law wanted notice immediately, not after the forensics. How the Authority file closed with no penalty.
We notified the Privacy Protection Authority within 31 hours, ran the Hebrew notification to the affected customers, and the Authority closed its file with a supervisory letter and no financial sanction against an exposure that reached NIS 320,000 in administrative penalties alone.
How a US Family Trust Was Regularised After a Daughter's Aliyah →
A Boston couple's 2011 trust quietly became an Israeli Resident Beneficiary Trust when their daughter's ten year exemption expired. Section 75H1(b) and Form 154 contained the charge.
The Israel Tax Authority accepted the trust as a relatives trust under Section 75H1(b), the trustee elected the 30 per cent distributions track on Form 154, and the matter closed at NIS 186,000 instead of an exposure costed at roughly NIS 1.05M.
How a US Couple Recovered NIS 41,800 in Israeli Bank Fees →
Four years of Hebrew only fee notices on a Jerusalem rental account. A Directive 308A complaint and a Section 16 finding produced a refund and a new account.
The Supervisor of Banks found the complaint justified, the bank gave a written undertaking to compensate, and NIS 41,800 in fees and conversion differentials was refunded alongside a converted foreign currency account.
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
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