Answers to the most common questions we receive from foreign shareholders considering the sale of Israeli securities - and from the family members helping them.
Can foreign shareholders sell Israeli shares without an active Israeli bank account?
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Yes. Many foreign shareholders no longer have an active Israeli bank account, or never had one. Sale proceeds can be routed through our firm's regulated client trust account in Israel, and then transferred directly to the shareholder's foreign bank account in USD, EUR, GBP, or other major currency. Complete tax clearance and transaction documentation is provided for the shareholder's foreign tax filings. This approach is used routinely - it is well-established legal practice in Israel.
Can you handle my case if I live in the USA, Canada, UK, Australia, France, or another country?
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Yes - the majority of our shareholder clients live abroad. We routinely represent foreign shareholders based in the United States (New York, Los Angeles, Miami, Chicago, Boston), Canada (Toronto, Montreal, Vancouver), the United Kingdom (London, Manchester), Australia (Sydney, Melbourne), France (Paris), Germany, Switzerland, Belgium, South Africa, and Brazil. Through a notarized Power of Attorney with Apostille certification - executed before a local notary in your country - we represent you fully in Israel: handling the trustee, the Israel Tax Authority, the broker, and the proceeds transfer to your foreign bank account. You never need to fly to Israel.
What if the shares are held by a trustee company like Reznik Paz Nevo or IBI?
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Trustee-held shares are very common for Israeli public companies - including Israel Corporation, Bezeq, Teva, the major Israeli banks, and many others. We work with whichever entity holds the shares - trustee companies such as Reznik Paz Nevo (often written Resnick) and I.B.I Trust Management, the nominee companies of the Israeli banks and of the Tel Aviv Stock Exchange, and others. The trustee remains as custodian throughout - we manage the legal process for sale and proceeds release.
Do the shareholders need to travel to Israel?
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No. The entire process is handled remotely through a notarized Power of Attorney with Apostille certification (or authentication, depending on jurisdiction). We act on behalf of the shareholders for all communications with the Israeli trustee, broker, Israel Tax Authority, and any other Israeli entity involved. The Power of Attorney is executed before a local notary in the shareholders' country of residence - country-specific instructions are provided.
My Israeli bank says I must sell my shares because I moved abroad. Is that true?
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Not necessarily. No Israeli law requires a foreign resident to sell shares traded in Tel Aviv - foreign residents hold them routinely. What a move abroad changes is the tax status of the account and the bank's own compliance requirements, so the bank may ask you to clarify your residency. Tax residency is a legal question, decided by where your centre of life is, and it should be settled before you sign anything the bank sends. A hurried sale can be costly, especially with restricted stock or a large holding. We take over the contact with the bank, clarify what your move actually requires and look for the route that protects your position.
Is there an exit tax on Israeli shares when I stop being an Israeli resident?
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Potentially, yes. Under Section 100A of the Income Tax Ordinance, an individual who ceases to be an Israeli resident is treated as having sold assets such as shares and options on the day before residency ended. The tax can be paid at that point, or deferred to the actual sale, in which case the gain is split in proportion to the holding period and Israel taxes the part that relates to the years of Israeli residency. Because the choice affects the final tax, it should be made with Israeli tax advice when the change of residency is reported.
I'm a US citizen and my Israeli bank wants me to sell my stocks. What can I do?
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Many Israeli banks restrict investment services for US persons because of FATCA reporting, so the demand often comes from bank policy rather than from Israeli law. Before you sell, check whether the holding can be kept, moved to another Israeli custodian that serves US clients, or sold on your own timetable. If you have also moved abroad, your Israeli tax residency and the Section 100A exit tax need to be settled first. We handle the contact with the bank and set out your options.
How do I sell inherited Israeli shares from abroad?
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First the heirs obtain an Israeli succession order, or a probate order where there is a will. The trustee, bank or broker holding the shares will not release them without it. The shares are then transferred to the heirs or sold, and the proceeds are divided according to the order and wired to each heir's account abroad. We handle the order and the sale as one engagement, remotely.
My Israeli company is being acquired. Why am I asked for a tax declaration?
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In a merger, tender offer or private sale, the buyer or its paying agent must withhold Israeli tax unless the seller shows it is exempt. Foreign holders therefore sign a declaration of status for Israeli tax purposes, and in private deals a withholding tax exemption certificate from the Israel Tax Authority may be needed, while the paying agent holds the proceeds for up to about six months. We prepare the declaration and the application so the consideration is released in full.
How long does the entire process take?
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The typical timeline is 4-8 weeks from engagement to funds received in the foreign account. Variables include the responsiveness of the trustee or broker, complexity of the share structure (single holding vs. multiple grants vs. inherited interests), and whether tax certificates require additional documentation. A realistic timeline is provided at engagement, with updates at each milestone. Where the shares are held by a known trustee and documentation is complete, the process can sometimes be completed faster.
What are the Israeli tax implications for non-resident shareholders?
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Under Section 97(b2) of the Income Tax Ordinance [New Version], 5721-1961, a foreign resident is generally exempt from Israeli capital gains tax on securities traded on the Tel Aviv Stock Exchange, provided the gain is not attributable to a permanent establishment in Israel. For shares of a private Israeli company, Section 97(b3) grants a similar exemption on stricter conditions, among them that the shares were not bought from a relative and that the company's value does not derive mainly from Israeli real estate. In practice, the bank or broker releases the proceeds without withholding once a foreign-resident declaration is on file, and where the case requires it we obtain approval from the tax assessor. We also provide the documentation needed for the shareholder's home-country tax filings.
Can siblings or multiple family members split the proceeds across different accounts?
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Yes. Where shares are owned by multiple parties - for example, jointly-owned holdings, shares held after inheritance, or family transfers - proceeds can be split according to ownership shares and wired to separate accounts in different countries. We handle the documentation, tax allocation, and proceeds disbursement for each beneficiary individually. This is common for family situations where siblings live in different countries (US, Canada, UK, Israel, etc.) and each prefers to receive their share in their local currency and account.
What documentation is needed to initiate the process?
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Initial documentation includes: (1) clear copies of all shareholders' passports, (2) any existing share certificates, trustee statements, or broker confirmations, (3) tax residency information for each shareholder (country of tax residence), and (4) contact details of the Israeli trustee, broker, or other entity currently holding the shares. The notarized Power of Attorney is prepared by our firm after the initial review and is executed before a local notary in the shareholders' country of residence. We provide country-specific instructions to ensure proper execution.
Is the initial consultation really free?
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Yes. The first consultation - by email, phone, or Zoom - is free and without obligation. We assess the matter, explain the legal process and realistic timeline, identify any complications upfront, and provide a clear fee structure before any engagement. Most clients arrive by referral from previous foreign shareholders we have represented. There is no cost or obligation to learn whether and how the matter can be handled.
Can you handle private (non-public) Israeli company shares as well?
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Yes. Private company share transactions follow different procedures - typically governed by the company's articles of association and any shareholders' agreement, rather than market trading. We handle both private and public company shares, including share transfers between family members, sales to third-party buyers, complete share dispositions, and inter-family share gifts. Private company matters often involve additional considerations around the company's pre-emption rights, board approvals, and valuation methodology.
Can you handle Israeli bonds, debentures, and mutual fund units?
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Yes. Beyond company shares, we handle the sale and transfer of Israeli bonds (both government and corporate), debentures, mutual fund units ("Kranot Ne'emanut"), and other securities held by foreign owners. The legal process is similar - verification of ownership, coordination with the trustee or broker, tax clearance from the Israel Tax Authority, and proceeds transfer to the foreign account. Israeli bond holdings often appear in the same trustee accounts as equity holdings, so they are frequently handled as part of the same engagement.