If you are an Israeli living abroad or a foreign resident with assets in Israel, managing your legal affairs from a distance can feel overwhelming. Whether you own property, have bank accounts, or need to handle inheritance matters, staying organized is key to protecting your interests. This checklist provides general guidance to help you navigate common legal considerations—without replacing personalized legal advice.

Why Legal Planning Matters for Israelis Abroad

Many Israelis living overseas maintain ties to Israel through property, investments, or family connections. However, legal systems differ between countries, and Israeli law may impose specific requirements on foreign residents. Proactively addressing these matters can help avoid complications, delays, or unexpected costs.

This checklist is designed for:

• Israelis residing in the United States, United Kingdom, Australia, or other countries
• Foreign residents with assets or legal interests in Israel
• Families managing inheritance or property matters across borders

1. Property Ownership in Israel

Owning real estate in Israel while living abroad requires careful attention to legal and tax obligations. Below are key considerations:

Verify Property Documentation

Ensure all property documents are up to date and properly registered with the Tabu (Israel Land Registry). Common documents include:

• Title deed (nesach tabu)
• Purchase agreement
• Mortgage or lien records
• Zoning and building permits (if applicable)

If you are unsure about the status of your property, a real estate lawyer in Israel can help review your documents and identify any discrepancies.

Understand Tax Obligations

Israel imposes several taxes on property ownership, including:

• Arnona (municipal tax): Paid annually to the local municipality. Rates vary by location and property size.
• Capital gains tax: Applicable when selling property, with exemptions for primary residences under certain conditions.
• Betterment tax (hekev hasbacha): Levied on increased property value due to zoning changes or improvements.

Tax laws may also interact with those of your country of residence. For example, U.S. citizens must report worldwide income, including rental income from Israeli property. Consulting a tax professional familiar with cross-border issues is advisable.

Manage Rental Properties Remotely

If you rent out your property, consider the following:

• Draft a legally sound lease agreement compliant with Israeli law.
• Appoint a local property manager to handle tenant issues, maintenance, and rent collection.
• Report rental income to Israeli tax authorities and, if applicable, your country of residence.

A lawyer can assist in drafting lease agreements and ensuring compliance with local regulations.

Plan for Property Transfers or Sales

Selling or transferring property in Israel from abroad involves several steps:

• Obtain a hesder mechira (sales agreement) reviewed by a lawyer.
• Verify that all taxes and municipal fees are paid to avoid delays.
• Complete the transfer at the Tabu with a power of attorney if you cannot be present in person.

For more details, visit our page on hiring a real estate lawyer in Israel from abroad.

2. Banking and Financial Accounts

Maintaining bank accounts in Israel while living abroad requires awareness of reporting requirements and potential restrictions.

Review Account Access and Authorization

Banks in Israel may require periodic verification of account holder identity, especially for non-residents. To avoid frozen accounts:

• Ensure your contact details are up to date with the bank.
• Designate an authorized representative, such as a family member or lawyer, to manage the account if needed.
• Consider granting a power of attorney to a trusted individual for banking matters.

Understand Tax Reporting Obligations

Israel and many other countries require residents to report foreign bank accounts. For example:

• U.S. citizens must file an FBAR (Foreign Bank Account Report) if their combined foreign accounts exceed $10,000 at any time during the year.
• UK residents may need to report foreign income under the Self Assessment tax system.
• Australian residents must declare worldwide income, including interest earned on Israeli accounts.

Failure to comply with reporting requirements can result in penalties. Consult a tax advisor familiar with cross-border financial matters.

Close Unnecessary Accounts

If you no longer need an Israeli bank account, closing it can simplify your financial management. However, ensure all outstanding fees, taxes, or obligations are settled before doing so. A lawyer can assist in verifying that no liabilities remain.

3. Inheritance and Probate Matters

Inheritance laws in Israel differ from those in other countries, and managing an estate from abroad can be complex. Planning ahead can help ensure your wishes are honored and reduce burdens on your family.

Draft or Update Your Will

Israeli law recognizes both Israeli and foreign wills, but certain formalities must be met for a will to be valid. Consider the following:

• An Israeli will must be in writing, signed by the testator, and witnessed by two individuals who are not beneficiaries.
• A foreign will may be recognized in Israel if it complies with the laws of the country where it was executed.
• If you own assets in multiple countries, consider whether a single will or separate wills for each jurisdiction would be more practical.

For guidance on drafting or updating a will, visit our page on inheritance and probate for foreign residents.

Understand Israeli Inheritance Law

In the absence of a valid will, Israeli inheritance law (dinei yerusha) determines how assets are distributed. Key points include:

• Spouses, children, and parents are typically first in line to inherit.
• Unmarried partners may have inheritance rights under certain conditions, but these are not automatic.
• Stepchildren and other relatives may inherit only if no closer relatives exist.

If you wish to deviate from these default rules, a will is essential.

Probate Process for Foreign Residents

Probating a will in Israel involves several steps, which can be time-consuming if you are not physically present. Key considerations include:

• Filing a probate application with the Israeli Registrar of Inheritance or Family Court.
• Providing authenticated copies of the will and death certificate (with apostille or consular certification if issued abroad).
• Notifying heirs and creditors, who may contest the will or claim against the estate.
• Appointing an executor or administrator to manage the estate.

A lawyer can represent you in the probate process and handle communications with Israeli authorities. Learn more about probate for foreign residents.

Minimize Inheritance Tax

Israel does not currently impose an inheritance tax, but other taxes may apply to inherited assets, such as:

• Capital gains tax on the sale of inherited property.
• Property tax (mas shevach) on inherited real estate.

Proper estate planning can help minimize tax liabilities for your heirs.

4. Power of Attorney for Legal Matters

Granting a power of attorney (POA) allows a trusted individual to act on your behalf in Israel, which is especially useful if you cannot travel to handle legal matters in person.

Types of Power of Attorney

Israeli law recognizes several types of POA, including:

• General POA: Grants broad authority to manage your affairs, but may be limited by law in certain areas (e.g., selling property).
• Specific POA: Limits authority to a particular task, such as selling a property or managing a bank account.
• Durable POA: Remains valid even if you become incapacitated, provided it includes specific language to that effect.

How to Execute a Power of Attorney Abroad

If you are outside Israel, you can execute a POA in one of the following ways:

• At an Israeli consulate: The consulate can notarize your signature on a POA drafted by an Israeli lawyer.
• Before a local notary: Have the POA notarized by a notary in your country of residence, then authenticate it with an apostille (for Hague Convention countries) or consular certification.
• Remotely with an Israeli lawyer: Some lawyers can prepare and execute a POA electronically, depending on the circumstances.

For detailed guidance, visit our page on obtaining a power of attorney in Israel from abroad.

Choosing an Agent

Selecting the right agent is critical. Consider the following:

• Choose someone trustworthy, such as a family member, close friend, or professional (e.g., a lawyer).
• Ensure the agent understands your wishes and is willing to take on the responsibility.
• Consider appointing a backup agent in case your primary agent is unable to act.

A lawyer can help draft a POA that clearly outlines the agent’s authority and responsibilities.

5. Family Law Considerations

Family law matters, such as divorce or child custody, can become complicated when one or both parties live abroad. Israeli courts may have jurisdiction over these issues, depending on the circumstances.

Divorce for Israelis Abroad

Israeli law governs divorce for Jewish couples through the Rabbinical Courts, while civil courts handle matters for non-Jewish couples. Key considerations include:

• Jurisdiction: Israeli courts may have jurisdiction if one spouse is an Israeli citizen or resident, or if the couple was married in Israel.
• Property division: Israeli law generally divides marital property equally, but prenuptial agreements or foreign laws may apply in some cases.
• Child custody: Israeli courts prioritize the best interests of the child, which may involve coordination with foreign courts if one parent lives abroad.

If you are considering divorce, consult a lawyer to understand how Israeli law may apply to your situation.

Child Custody and Support

Custody and child support matters can be particularly complex when parents live in different countries. Israeli courts may enforce foreign custody orders under certain conditions, such as the Hague Convention on the Civil Aspects of International Child Abduction. Key steps include:

• Obtaining a custody order from an Israeli court or recognizing a foreign order in Israel.
• Establishing a child support agreement that complies with Israeli law.
• Coordinating with foreign authorities to enforce custody or support orders.

A lawyer can help navigate these issues and ensure your rights and your child’s best interests are protected.

6. Business and Commercial Interests

If you own or operate a business in Israel while living abroad, you must comply with local regulations and manage your interests remotely.

Maintain Corporate Compliance

Israeli companies must adhere to ongoing compliance requirements, including:

• Filing annual financial statements with the Registrar of Companies.
• Holding annual general meetings (AGMs) and documenting decisions.
• Updating company records with changes in directors, shareholders, or address.

Failure to comply can result in fines or administrative dissolution of the company. A lawyer can assist in maintaining compliance and representing your interests in corporate matters.

Manage Remote Business Operations

Running a business from abroad requires reliable local support. Consider the following:

• Appoint a local manager or director to oversee day-to-day operations.
• Grant a power of attorney to a trusted individual for specific business matters.
• Use digital tools for remote management, such as online banking and electronic signatures.

A lawyer can help draft agreements and ensure your business operations comply with Israeli law.

7. Staying Informed About Legal Changes

Israeli laws and regulations can change, and staying informed is essential for protecting your interests. Here are some ways to stay updated:

• Subscribe to legal newsletters or updates from reputable Israeli law firms.
• Follow official government websites, such as the Ministry of Justice or Israel Tax Authority.
• Consult a lawyer periodically to review your legal and financial arrangements.

For personalized updates, consider scheduling a consultation with a lawyer who specializes in legal services for Israelis abroad.

FAQs: Legal Checklist for Israelis Living Abroad

Do I need an Israeli lawyer if I live abroad?

While not always required, an Israeli lawyer can help navigate local laws, draft legally sound documents, and represent your interests in court or before government authorities. This is especially important for complex matters like property transactions, inheritance, or business operations. Learn more about how a lawyer can assist Israelis living abroad.

Can I sell my Israeli property from abroad?

Yes, you can sell property in Israel while living abroad, but you will need to grant a power of attorney to a trusted individual or lawyer to act on your behalf. The process involves signing a sales agreement, paying applicable taxes, and completing the transfer at the Tabu. For more information, visit our page on real estate services for foreign residents.

How do I probate a will in Israel from abroad?

Probating a will in Israel from abroad involves filing an application with the Israeli Registrar of Inheritance or Family Court, providing authenticated documents (e.g., will, death certificate), and notifying heirs and creditors. A lawyer can represent you in the process and handle communications with Israeli authorities. For details, see our guide on inheritance and probate for foreign residents.

What taxes do I need to pay on Israeli property?

Owning property in Israel may subject you to several taxes, including:

• Arnona (municipal tax): Paid annually to the local municipality.
• Capital gains tax: Applicable when selling property, with exemptions for primary residences under certain conditions.
• Betterment tax (hekev hasbacha): Levied on increased property value due to zoning changes or improvements.

Tax obligations may also interact with those of your country of residence. Consult a tax professional for personalized advice.

Can I execute a power of attorney from abroad?

Yes, you can execute a power of attorney from abroad by having it notarized at an Israeli consulate or by a local notary in your country of residence. The document may require an apostille or consular certification to be valid in Israel. For step-by-step guidance, visit our page on obtaining a power of attorney in Israel from abroad.

How do Israeli inheritance laws differ from those in the U.S., UK, or Australia?

Israeli inheritance law differs from those in other countries in several ways:

• Default heirs: In the absence of a will, Israeli law prioritizes spouses, children, and parents, while stepchildren and other relatives may inherit only if no closer relatives exist.
• No inheritance tax: Israel does not currently impose an inheritance tax, but other taxes (e.g., capital gains tax) may apply to inherited assets.
• Rabbinical courts: For Jewish couples, divorce and inheritance matters may be handled by Rabbinical Courts, which apply religious law.

If you own assets in multiple countries, consult a lawyer to understand how these differences may affect your estate plan.

Next Steps: How We Can Help

Managing legal affairs in Israel from abroad can be complex, but you don’t have to navigate it alone. At Aviv Gelman Law Office, we specialize in assisting Israelis and foreign residents with their legal needs in Israel. Our services include:

• Reviewing and drafting property documents, wills, and powers of attorney.
• Representing clients in probate, inheritance, and real estate matters.
• Providing guidance on tax obligations and compliance.
• Assisting with business and corporate legal matters.

We understand the unique challenges faced by Israelis living abroad and are committed to providing practical, reliable legal support. To discuss your specific needs, please contact us at office@aviv-law.co.il.

For more information about our services, explore the following pages:

• Legal services for Americans in Israel
• Legal services for UK residents in Israel
• Legal services for Australians in Israel
• Comprehensive legal services for people abroad