Quite a few Israelis, especially Israelis who return to Israel after relocation, have to transfer sums of money from their bank account abroad to an Israeli bank account. , Or a desire to avoid accumulating large sums of money in other countries, especially in countries that are not economically or politically stable.
To avoid unpleasantness and encounters with the various authorities we have prepared here for you a brief guide on how to perform this step legally.
Bank check
The banking systems in the State of Israel have changed significantly in recent years with regard to money transactions between accounts, and recently an amendment was passed to the Anti-Money Laundering Law in the State of Israel so that non-reporting of income tax is considered an offense. Banks are in fact actual tax collectors, and constitute one of the state’s supervisory tools. For this reason all banks conduct rigorous checks to make sure that the funds transferred came from a legal source and that they were reported to the tax authorities in the world (and not just in Israel). The banks have to meet Israeli and global standards, so you will have to present them with many documents, such as: an accountant’s certificate in the country of origin, tax returns from the country of origin, a tax return certificate in Israel and more. In the case of a returning resident, the bank will sometimes require a legal opinion because the fact that a person is a foreign resident is a legally complicated question.
Tax Authorities
Apart from the bank check, it is important to know and be careful about the tax check. The Israeli tax authorities receive reports of money transfers from banks and can contact the account holder with questions about the source of the money and the legal reports on it. For this reason, a returning resident after relocation, who he claims was severed from residency at the time he deposited the money, must ensure that he was not exposed to Israeli tax while living abroad. Moreover, disclosure of income in Israel could lead to social security payments if not Proper severance of residency. It is important to prepare properly before transferring funds from abroad to Israel and to seek the professional service of a tax advisor.
Ocean relocation
Ocean Relocation accompanies people throughout the relocation process, from the initial thought of moving to returning to Israel. The company accompanies the customers and characterizes the needs and services that each customer needs individually. For the company, relocation is a circular process. The cycle begins with the initial thought of moving abroad, including all the organization and preparations for the trip, the actual move abroad, the acclimatization and entry into the new routine of life, and closes with the return to Israel. The process of course can be anywhere from a few months to several decades. The relocation process has many benefits and great experiences, but there are also many difficulties and struggles in all respects.
Ocean Relocation is here to help you with exactly these difficulties. The company has rich experience gained while working with tens of thousands of customers.