What are the best investment options for Israeli expats?
For Israeli expatriates, investment options can include offshore accounts, international funds, property in your host country, and retaining certain Israeli assets like pensions or tax-advantaged savings plans.
Because Israel taxes residents on worldwide income but generally does not tax non-residents on foreign-sourced income, your tax residency status will heavily influence which options make sense.
Living abroad doesn’t mean you have to cut financial ties with Israel, but it does mean you need to think differently about how and where you invest.
This guide looks at how tax rules affect your portfolio, the pros and cons of keeping funds in Israel, and offshore strategies that can help you grow and protect wealth while overseas.
My contact details are [email protected] and WhatsApp +44-7393-450-837 if you have any questions.
The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
As an Israeli living overseas, you have the flexibility to invest in both Israeli and non-Israeli assets.
Local investments can be appealing if you plan to return or want to maintain a foothold in the Israeli market.
However, offshore or host-country investments may offer better tax treatment, currency diversification, and access to markets not easily available from Israel.
One major consideration is currency risk. The shekel can be volatile, and holding all your wealth in one currency can limit purchasing power abroad.
Your first step should be confirming your tax residency status under Israeli law.
Being classified as a non-resident can reduce your Israeli tax obligations but may create new reporting duties in your host country.
Once residency is clear, you can explore:
Keeping investments in Israel can be smart if you want shekel exposure, local market familiarity, or to benefit from tax-free accounts established before leaving.
However, if your long-term future is abroad, you’ll need to weigh Israeli capital gains tax, estate implications, and the impact of currency swings.
For many expats, a hybrid approach can provide a balance. That means some assets in Israel for stability, others offshore for growth and tax efficiency.
Local Israeli expat investment options include government bonds, Tel Aviv Stock Exchange ETFs, real estate, and tech sector ventures.
These offer growth potential tied to Israel’s economy, though they carry local currency and market risk.
Choosing where and how to invest involves balancing local opportunities with offshore diversification.
Common offshore options include global ETFs, foreign real estate, offshore investment accounts, and international bonds.
Diversifying outside Israel can reduce local market exposure, provide foreign currency income, and open access to asset classes unavailable domestically.
Once you’ve moved abroad from Israel, it often makes more sense to explore international investment opportunities rather than keeping all your assets tied up locally.
The best alternative investments for Israeli expats include venture capital, private equity, real estate development projects, commodities, and niche assets like art or wine.
However, all of these are high-risk and should be approached with professional guidance.
Offshore companies can offer tax efficiency, asset protection, and operational flexibility. Popular jurisdictions include Cyprus, the British Virgin Islands, and the Cayman Islands.
The best offshore company structures include International Business Companies (IBCs), Limited Liability Companies (LLCs), foundations, and holding companies.
In Israel, your tax residency is determined mainly by your center of life, which considers where your personal, economic, and family ties are strongest.
While day-count tests matter, the Israel Tax Authority (ITA) also looks at broader connections to the country. Generally, you’re presumed tax resident if you spend:
If you leave Israel, you may still be considered tax resident for a period if your center of life remains in the country. For instance, if you maintain a home, family, or significant business activity there.
Yes. Israeli tax residents are taxed on their worldwide income, including salaries, investments, rental income, and capital gains. Non-residents, on the other hand, are generally taxed only on Israeli-sourced income.
However, determining when you’ve officially become a non-resident can be complex, especially if you still have ties to Israel.
A formal residency break often requires both a physical absence and evidence that your center of life has shifted abroad.
The tax treatment depends on both your residency status and where the assets are held:
Israel’s capital gains tax is typically 25% for individuals and 30% for significant shareholders.
Special rules may apply to new immigrants and returning residents, who may receive exemptions on foreign income for up to 10 years.
Yes, if you are considered a tax resident of Israel, you will need to report it on your Israeli tax return.
Israel’s long-standing exemption for new immigrants and returning residents on reporting overseas assets will end on January 1, 2026.
From then, they must disclose all global income and assets, in line with OECD transparency rules. 2025 is the last year to return under the old rules.
Because Israel taxes residents on worldwide income, and many other countries do the same, double taxation can be a risk.
Israel has tax treaties with more than 50 countries to help reduce or eliminate this, but careful structuring is needed to avoid paying twice.
Leaving Israel does not make you lose your investments. If you keep local assets, they remain yours but the tax treatment changes depending on whether you’re still considered an Israeli tax resident.
You can invest in the Israeli economy through Tel Aviv Stock Exchange stocks, government and corporate bonds, local real estate, and startup funding.
Expats also use Israeli mutual funds or ETFs to gain exposure without direct company ownership.
Israeli real estate has shown long-term price growth, especially in cities like Tel Aviv. However, prices are high, demand is competitive, and transaction costs can be significant.
Israel’s high taxes fund security, healthcare, education, and infrastructure, with a progressive income tax system and high VAT (18%). Property and corporate taxes also add to the overall burden.
Israeli bonds cost varies depending on the type and term of the bond you are interested in.
Government bonds can start at just a few hundred shekels, but institutional investors may buy in millions. Many bonds are tradable via TASE or Israeli banks.
It depends. While the war and regional instability have deterred some and complicated immigration flows, a committed segment of expats and immigrants continues to move to Israel, driven by cultural, religious, and personal reasons.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
For Israeli expatriates, investment options can include offshore accounts, international funds, property in your host country, and retaining certain Israeli assets like pensions or tax-advantaged savings plans.
Because Israel taxes residents on worldwide income but generally does not tax non-residents on foreign-sourced income, your tax residency status will heavily influence which options make sense.
Living abroad doesn’t mean you have to cut financial ties with Israel, but it does mean you need to think differently about how and where you invest.
This guide looks at how tax rules affect your portfolio, the pros and cons of keeping funds in Israel, and offshore strategies that can help you grow and protect wealth while overseas.
My contact details are [email protected] and WhatsApp +44-7393-450-837 if you have any questions.
The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Investing as an Israeli expat
As an Israeli living overseas, you have the flexibility to invest in both Israeli and non-Israeli assets.
Local investments can be appealing if you plan to return or want to maintain a foothold in the Israeli market.
However, offshore or host-country investments may offer better tax treatment, currency diversification, and access to markets not easily available from Israel.
One major consideration is currency risk. The shekel can be volatile, and holding all your wealth in one currency can limit purchasing power abroad.
How to invest as an Israeli expat
Your first step should be confirming your tax residency status under Israeli law.
Being classified as a non-resident can reduce your Israeli tax obligations but may create new reporting duties in your host country.
Once residency is clear, you can explore:
- Offshore platforms that allow multi-currency investing and global fund access.
- Host-country brokerage accounts for investing in local property, bonds, or equities.
- Retaining Israeli assets such as Keren Hishtalmut (tax-free savings) or Kupot Gemel (pension funds) if the benefits outweigh the limitations.
Is investing in Israel a good idea?
Keeping investments in Israel can be smart if you want shekel exposure, local market familiarity, or to benefit from tax-free accounts established before leaving.
However, if your long-term future is abroad, you’ll need to weigh Israeli capital gains tax, estate implications, and the impact of currency swings.
For many expats, a hybrid approach can provide a balance. That means some assets in Israel for stability, others offshore for growth and tax efficiency.
What are the best investment options in Israel for expats?
Local Israeli expat investment options include government bonds, Tel Aviv Stock Exchange ETFs, real estate, and tech sector ventures.
These offer growth potential tied to Israel’s economy, though they carry local currency and market risk.
- Israeli Government Bonds
- These bonds can be considered a sound investment in terms of payment reliability and credit strength.
- Carry ethical, liquidity, and geopolitical risks that potential investors should carefully evaluate relative to their investment goals and risk tolerance.
- Local Mutual Funds & ETFs
- Many track the Tel Aviv Stock Exchange (TASE), giving exposure to top Israeli companies.
- Options range from equity-focused funds to fixed-income and mixed portfolios.
- Real Estate
- Property investment in cities like Tel Aviv, Haifa, or Jerusalem can generate rental income and capital appreciation.
- Entry costs are high, and mortgage rules can be strict for non-residents.
- Tech & Innovation Sector
- Israel is known as the Startup Nation, with strong growth in cybersecurity, biotech, and fintech.
- Access via venture capital funds or public listings.
- Investments in Israeli startups reportedly reached a three-year high in the first half of 2025, despite ongoing regional conflict
Choosing where and how to invest involves balancing local opportunities with offshore diversification.
Best Offshore Investments for Israeli Expats
Common offshore options include global ETFs, foreign real estate, offshore investment accounts, and international bonds.
- Global ETFs & Index Funds
- Low-cost access to developed and emerging markets.
- Helps spread risk across sectors, countries, and currencies.
- Foreign Real Estate
- Popular for rental yield and capital appreciation.
- Can serve as a hedge against shekel volatility.
- Offshore Investment Platforms
- Offer multi-currency accounts and access to a broad selection of global mutual funds, structured notes, and bonds.
- Useful for expats who frequently move or hold assets in multiple jurisdictions.
- International Bonds & Fixed Income
- Offshore bonds may offer better yields or stronger currency stability than Israeli equivalents.
Diversifying outside Israel can reduce local market exposure, provide foreign currency income, and open access to asset classes unavailable domestically.
Once you’ve moved abroad from Israel, it often makes more sense to explore international investment opportunities rather than keeping all your assets tied up locally.
Israeli Alternative Investment Options
The best alternative investments for Israeli expats include venture capital, private equity, real estate development projects, commodities, and niche assets like art or wine.
However, all of these are high-risk and should be approached with professional guidance.
- Private Equity & Venture Capital – Israel’s tech sector is thriving, with startups drawing record investments despite ongoing challenges. Expats can join VC funds or private equity deals to access early stage innovation, but these carry significant volatility.
- Real Estate Development Projects – Development partnerships, REITs, and structured property funds can offer higher returns than rental properties, but market shifts or project delays can impact profitability.
- Commodities – Commodities act as hedges against currency fluctuations, yet prices can swing sharply.
- Art, Wine, and Collectibles – Tangible assets with cultural value can appreciate over time, but they require specialized knowledge and may be hard to sell quickly.
Offshore Company Structures for Israeli Expats
Offshore companies can offer tax efficiency, asset protection, and operational flexibility. Popular jurisdictions include Cyprus, the British Virgin Islands, and the Cayman Islands.
The best offshore company structures include International Business Companies (IBCs), Limited Liability Companies (LLCs), foundations, and holding companies.
Israeli Tax Residency
In Israel, your tax residency is determined mainly by your center of life, which considers where your personal, economic, and family ties are strongest.
While day-count tests matter, the Israel Tax Authority (ITA) also looks at broader connections to the country. Generally, you’re presumed tax resident if you spend:
- 183 days or more in Israel in a single tax year, or
- 425 days or more over three consecutive years (including at least 30 days in the current year).
If you leave Israel, you may still be considered tax resident for a period if your center of life remains in the country. For instance, if you maintain a home, family, or significant business activity there.
Do expats pay tax in Israel?
Yes. Israeli tax residents are taxed on their worldwide income, including salaries, investments, rental income, and capital gains. Non-residents, on the other hand, are generally taxed only on Israeli-sourced income.
However, determining when you’ve officially become a non-resident can be complex, especially if you still have ties to Israel.
A formal residency break often requires both a physical absence and evidence that your center of life has shifted abroad.
Do Israeli expats pay taxes on investments?
The tax treatment depends on both your residency status and where the assets are held:
- If tax resident in Israel: You must declare and pay tax on global investment income, including foreign dividends, interest, and capital gains.
- If non-resident: You’re usually taxed only on Israeli-sourced investment returns.
Israel’s capital gains tax is typically 25% for individuals and 30% for significant shareholders.
Special rules may apply to new immigrants and returning residents, who may receive exemptions on foreign income for up to 10 years.
Do I need to declare foreign income in Israel?
Yes, if you are considered a tax resident of Israel, you will need to report it on your Israeli tax return.
Israel’s long-standing exemption for new immigrants and returning residents on reporting overseas assets will end on January 1, 2026.
From then, they must disclose all global income and assets, in line with OECD transparency rules. 2025 is the last year to return under the old rules.
Israeli tax on investments vs host countries
Because Israel taxes residents on worldwide income, and many other countries do the same, double taxation can be a risk.
Israel has tax treaties with more than 50 countries to help reduce or eliminate this, but careful structuring is needed to avoid paying twice.
What happens to my investments if I leave Israel?
Leaving Israel does not make you lose your investments. If you keep local assets, they remain yours but the tax treatment changes depending on whether you’re still considered an Israeli tax resident.
FAQs
How to invest in the Israeli economy?
You can invest in the Israeli economy through Tel Aviv Stock Exchange stocks, government and corporate bonds, local real estate, and startup funding.
Expats also use Israeli mutual funds or ETFs to gain exposure without direct company ownership.
Is Israeli real estate a good investment?
Israeli real estate has shown long-term price growth, especially in cities like Tel Aviv. However, prices are high, demand is competitive, and transaction costs can be significant.
Why are taxes so high in Israel?
Israel’s high taxes fund security, healthcare, education, and infrastructure, with a progressive income tax system and high VAT (18%). Property and corporate taxes also add to the overall burden.
How much do Israeli bonds cost?
Israeli bonds cost varies depending on the type and term of the bond you are interested in.
Government bonds can start at just a few hundred shekels, but institutional investors may buy in millions. Many bonds are tradable via TASE or Israeli banks.
Is living in Israel worth it?
It depends. While the war and regional instability have deterred some and complicated immigration flows, a committed segment of expats and immigrants continues to move to Israel, driven by cultural, religious, and personal reasons.
Pained by financial indecision?
Become my client
Take client eligibility quiz
Contact
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.