Selling Israeli Shares

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5/5 - (3 votes)
🕒 Updated: · By Adv. Reut Eliyahu, Notary
Israeli Corporate Law · Cross-Border Securities

Selling Israeli Public Company Shares for Foreign Shareholders

Legal representation for non-residents - including without an active Israeli bank account

Foreign shareholders worldwide: United States · United Kingdom · Canada · France · Australia · Germany · Switzerland · Belgium · South Africa · Brazil · and across the diaspora.

Selling Israeli public company shares for foreign shareholders - Eliyahu & Co. Law Office, Herzliya
Quick Answer

Yes. Foreign residents can sell Israeli public company shares from abroad, even without an Israeli bank account, and usually pay no Israeli capital gains tax. Under Section 97(b2) of the Income Tax Ordinance [New Version], 5721-1961, a foreign resident's gain on securities traded on the Tel Aviv Stock Exchange is exempt, provided it is not attributable to a permanent establishment in Israel.

  1. Power of Attorney: signed before a notary abroad, with an apostille
  2. Holder Liaison: we deal with the trustee, bank or broker holding the shares
  3. Sale & Tax: sale on the TASE, with the foreign-resident exemption in place
  4. Direct Wire Transfer: proceeds to your foreign account, no Israeli account needed
Section 97(b2) Foreign-resident exemption
on TASE securities
4-8 weeks Typical timeline
engagement to funds
No travel Full remote service
via Power of Attorney
Since 2007 Member of the
Israel Bar Association
About the Firm

Israeli Securities & Cross-Border Legal Practice - Since 2007

Eliyahu & Co. Law Office is a boutique Israeli law firm specializing in cross-border legal services for foreign shareholders, non-residents, and international clients - with particular focus on the sale and transfer of Israeli public company shares, trustee-held securities, private company shareholdings, and the broader spectrum of Israeli securities matters arising in international contexts. Over 19+ years of practice, the firm has built substantial experience representing shareholders across every scale and complexity - from individual non-resident owners of small holdings to estate-related transactions involving multi-million-dollar positions in TASE-listed companies, dual-listed securities, and shares held through Israeli trustee companies such as Reznik Paz Nevo and I.B.I Trust Management, and through the nominee companies of the banks and of the Tel Aviv Stock Exchange.

Our specialization spans every legal aspect of foreign-shareholder securities transactions: Power of Attorney preparation with Apostille for execution abroad, direct liaison with Israeli trustee companies and licensed brokers, tax planning under Sections 97(b2) and 97(b3) of the Israeli Income Tax Ordinance for the non-resident capital gains exemption, foreign-resident declarations to banks and brokers and, where the case requires it, approvals from the tax assessor, execution of share sales on the Tel Aviv Stock Exchange, structured handling of Section 102 employer-grant shares, transfer documentation for the Israel Securities Authority, and coordination with foreign tax counsel for IRS Form 8938, FBAR, HMRC, CRA and equivalent international filings. The firm also handles the specialized procedures required when shareholders no longer maintain an active Israeli bank account - routing proceeds through the firm's regulated client trust account directly to foreign destinations.

The firm is led by Adv. Reut Eliyahu, founding attorney and licensed Israeli notary, who holds an LL.B and an MBA with Marketing Specialization, has been a member of the Israel Bar Association since 2007 (License No. 47439), and is also a registered arbitrator. The combination of legal training, formal notarial authority, business administration credentials, and 19+ years of direct practice in cross-border Israeli matters allows the firm to handle every dimension of a foreign-shareholder transaction in-house: legal strategy, document preparation, notarization, trustee coordination, tax planning, and post-transaction registration. Adv. Eliyahu handles each securities matter personally - from initial consultation through funds received in the shareholder's foreign account - providing the continuity that cross-border clients value most.

📍 Most engagements arrive by direct referral from previous foreign clients. The first consultation is free and without obligation, by email, phone, or Zoom - at your convenience across time zones.
Who We Help

Common Scenarios for Foreign Shareholders

Israeli shares sit in foreign portfolios for many reasons - old employer grants, family transfers across generations, inherited investments, or simple migration history. Each scenario requires its own legal approach. Below are the most common patterns we handle for non-resident shareholders.

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Foreign Shareholders of Israeli Public Companies

Non-residents holding shares of Israeli companies listed on the Tel Aviv Stock Exchange - including Israel Corporation, Bezeq, Teva, Bank Leumi, Bank Hapoalim, and others. Whether the shares are held directly or through a trustee, we manage the full legal process for sale and proceeds release.

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Heirs of Israeli Securities

Beneficiaries who inherited Israeli shares from a parent, sibling, or relative - and now live abroad. Often the shares are discovered during estate administration, sometimes in trustee accounts the heirs never knew existed. Before a trustee or bank releases inherited shares, the heirs need an Israeli succession order or, where there is a will, a probate order - we handle both alongside the securities transfer.

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Former Israelis & Foreign Investors

Israelis who relocated to the United States, Canada, the UK, or elsewhere years ago - typically without closing out all Israeli financial positions. Also includes non-Israeli individuals or entities who invested in an Israeli company years ago and now want to liquidate the position.

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Trustee-Held Securities (Non-Active Accounts)

Shareholders whose securities sit with an Israeli trustee or a bank's nominee company, while the owners no longer have an active Israeli bank account. This is one of the most common patterns we handle.

Key Legal References

The legal framework governing non-resident shareholders in Israeli public companies is well-established. These are the core statutory and regulatory references that determine how the sale of shares is taxed and processed.

Section 97(b2)

Income Tax Ordinance - Foreign residents are exempt from capital gains tax on securities traded on the Tel Aviv Stock Exchange, where the gain is not attributable to a permanent establishment in Israel

Section 97(b3)

Private company shares - A similar exemption, on conditions: the shares were not bought from a relative, and since 1 August 2013 the company's value may not derive mainly from Israeli real estate

Section 100A

Exit tax - An individual who stops being an Israeli resident is treated as selling their assets on the day before residency ends, with the option to defer the tax to the actual sale

Section 102

Stock options & employee shares - Specific tax treatment when shares originated from employer grants held by a trustee

4-8 weeks

Typical timeline - From engagement to funds received in foreign account

Every 3 years

Foreign-resident declaration - The Israeli bank holds a signed declaration of foreign residency, renewed every three years, before it releases proceeds without withholding tax

Who Holds the Shares

Israeli Trustees and Nominee Companies Holding the Shares

Most Israeli public company shares held by foreign shareholders are not registered in the shareholder's own name. They sit with a trustee company or with a bank's nominee company. Identifying that entity is the first thing we do, because it decides who we deal with and which documents it will ask for.

We work with whichever entity holds your shares. These are some of the names that come up most often:

Reznik Paz Nevo Trusts

רזניק פז נבו נאמנויות

I.B.I Trust Management

אי.בי.אי - נאמן לפי סעיף 102

TASE Nominee Company

החברה לרישומים של הבורסה

Bank Hapoalim nominee company

חברה לרישומים - בנק הפועלים

Mizrahi Tefahot nominee company

חברה לרישומים - מזרחי טפחות

Discount nominee company

חברה לרישומים - דיסקונט

If your trustee isn't listed here - that's no obstacle. Shares can also sit with smaller trust companies, bank trust departments or a licensed broker. The legal process is similar regardless of which entity holds them.

Holding shares in an Israeli company you need to sell? Let's review your situation.

Free initial consultation - by email, phone, or Zoom - to assess where the shares are held, your options, and the realistic timeline. No obligation.

Full-Service Representation

What We Handle - From Documentation to Funds in Your Foreign Account

Selling Israeli shares as a non-resident is rarely a single transaction - it involves coordination across multiple Israeli entities, tax authorities, and (often) the international banking system. We handle every step end-to-end.

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Public Company Shares (TASE)

Sale of shares listed on the Tel Aviv Stock Exchange - execution through licensed Israeli brokers, with all regulatory compliance for non-resident shareholders.

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Trustee-Held Securities

Direct coordination with the trustee or bank nominee company holding the shares - from verification of holdings through release of sale proceeds.

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Private Company Shares

Off-market transfers of private Israeli company shares - including transfers between family members, sales to third parties, and complete share dispositions.

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Israeli Securities at Foreign Brokers

Shares of Israeli companies (dual-listed or otherwise) held through foreign brokers - coordination of Israeli tax certificates and Israeli regulatory documentation.

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Israeli Bonds & Debentures

Government and corporate bonds, debentures, and structured securities held by foreign owners - verification, sale, and proceeds transfer.

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Mutual Fund Units (Kranot)

Israeli mutual fund units held by non-resident investors - redemption coordination, tax clearance, and proceeds release to foreign accounts.

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Real Estate Holding Companies

Shares of "Chevrot Gush Chelka" - Israeli companies whose primary asset is real estate. The Section 97(b3) exemption does not apply to them, so the tax position is checked before any sale.

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Tax Exemption & Declarations

The Section 97(b2) and 97(b3) exemptions, foreign-resident declarations to the bank or broker, tax assessor approvals where required, and documentation for IRS Form 8938, FBAR and equivalent foreign filings.

Sale Path Comparison

With an Israeli Bank Account vs. Without - How the Process Differs

The presence (or absence) of an active Israeli bank account affects how the sale proceeds are routed - but it does not prevent foreign shareholders from selling. Both paths are entirely workable.

ItemWith Active Israeli AccountWithout Israeli Account
Timeline3-5 weeks typical4-8 weeks typical
Power of AttorneyNotarized + ApostilleNotarized + Apostille (often expanded scope)
Proceeds RoutingDirect to Israeli account, then wire abroadThrough firm trust account, then direct to foreign account
Tax ExemptionForeign-resident declaration at the bank (Section 97(b2))Declaration or tax assessor approval, as the case requires
Trustee LiaisonDirect with trustee + bankDirect with trustee, firm acts as proceeds custodian
Foreign CurrencyConvert at Israeli bank or on wireConversion handled at transfer to foreign account
DocumentationStandard suiteExtended (additional bank compliance documentation)
How It Works

The Six-Step Process - From First Consultation to Funds Received

Every engagement follows a clear, sequenced process. You always know which stage your matter is in, what is happening next, and the realistic timeline for each step.

1

Initial Assessment & Documentation Review

Free consultation by email, phone, or Zoom. We confirm where the shares are held - direct registration, trustee account, broker account, or other arrangement. We verify tax residency of the shareholders, review any existing documentation (share certificates, trustee statements, prior tax filings), and estimate the transaction value. At this stage we identify any complications early - joint ownership questions, prior gift transfers, employer-grant origin (Section 102 implications), or estate-related issues.

2

Power of Attorney Preparation & Apostille

We draft a customized Israeli Power of Attorney in English, tailored to the specific transaction - including authority to liaise with the trustee, execute the sale, obtain tax certificates, and transfer proceeds. The POA is executed before a local notary in the shareholders' country of residence, then apostilled (or authenticated, depending on jurisdiction) and sent to our firm in Israel. We provide detailed country-specific instructions to ensure the document is properly executed the first time.

3

Engagement Agreement & Scope Confirmation

A clear written engagement letter outlining the scope of services, the custom fee structure (based on transaction value and complexity), and the projected timeline. Every cost item is identified upfront - legal fees, government certificate fees, broker fees if applicable. No engagement begins until the agreement is signed and you have full clarity on every cost.

4

Liaison with Trustee, Broker, or Issuer

Direct communication with the entity holding the shares - typically an Israeli trustee company, a bank's nominee company or a licensed broker. We verify the share ownership, confirm the current holding structure, and prepare for sale execution. For trustee-held shares, knowing how each holding entity works is what keeps this step short.

5

Sale Execution & Tax Clearance

Execution of the share sale - typically on the Tel Aviv Stock Exchange for public company shares, or off-market for private placements. Before the proceeds are released, the foreign-resident exemption under Section 97(b2) is put in place: a foreign-resident declaration with the bank or broker, or approval from the tax assessor where the case requires it, for example with non-traded shares. We provide all documentation in a format suitable for the shareholder's home-country tax filings.

6

Funds Transfer to Foreign Account

Net proceeds are wired directly to the shareholders' foreign bank account - in USD, EUR, GBP, CAD, or other major currency. Where multiple beneficiaries are involved (siblings, co-heirs, joint owners), proceeds can be split across separate accounts in different countries. Complete transaction documentation is provided for foreign tax reporting requirements (IRS Form 8938, FBAR, HMRC equivalents).

The Most Common Obstacle - Solved

No Active Israeli Bank Account? Here's How It Works.

This is the single most common obstacle foreign shareholders encounter when trying to sell Israeli shares - and the reason many simply give up. It's also entirely solvable.

The Problem

Many foreign shareholders no longer have an active Israeli bank account. They may have closed it years or decades ago when leaving Israel - or they may have never had one (as in the case of inherited or family-gifted shares). At the same time, Israeli banks have become increasingly reluctant to open new accounts for non-residents due to FATCA, CRS, and Israeli anti-money-laundering compliance burdens. The result: a non-resident shareholder may hold shares worth significant value but have no clear path to receive the proceeds.

Our Solution

Sale proceeds are routed through our firm's client trust account in Israel - a regulated, fully-documented escrow arrangement compliant with Israel Bar Association requirements. From there, once the tax position is cleared, the net proceeds are wired directly to the shareholders' foreign bank account. The shareholder never needs to open or maintain an Israeli bank account. This approach is used routinely for foreign shareholders worldwide - it is well-established legal practice in Israel.

From our practice

Clients living in the United States contacted us about Israeli shares they needed to sell and transfer. They had no bank account in Israel, did not know the Israeli process, and could not supervise it from the other side of the ocean.

We took the matter over from start to finish. We prepared the documents for them to sign in the United States, dealt directly with the entity holding the shares and with the Israeli tax side, and completed the sale and the transfer for them. The matter was closed quickly and smoothly, to their full satisfaction - and it lifted a real worry off their shoulders while they were far away.

Changing Residency

Moving Abroad While Holding Shares in Israel

Not every shareholder who contacts us wants to sell. Some are told to. When an Israeli resident relocates, the bank holding the securities account typically asks the client to clarify their residency status, and some banks warn that a client who is no longer an Israeli resident will have to sell the holdings. For someone with a large or restricted position, that warning arrives at the worst possible moment - from abroad, by phone, with no clear idea of what the law actually requires.

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. Tax residency is a legal question, decided under the Income Tax Ordinance by where the person's centre of life is, with presumptions based on the days spent in Israel. It should be settled before anything the bank sends is signed, because the answer also decides whether the exit tax applies.

Residency is a legal question

Whether you are still an Israeli resident for tax purposes is not decided by a bank form. The centre-of-life test looks at family, economic and social ties, and the answer affects both withholding on the account and your filings abroad.

Section 100A exit tax

An individual who stops being an Israeli resident is treated as selling assets such as shares and options on the day before residency ends. The tax can be paid then, or deferred to the actual sale, when the gain is split in proportion to the years of Israeli residency.

Restricted stock and employer grants

Shares under a lock-up, or employer grants held by a trustee under Section 102, may not be free to sell at all when the bank asks. A forced or hurried sale can also turn a favourable tax track into a costly one. The terms of the grant are checked first.

US citizens and FATCA

For American citizens the pressure to sell often has a second source. Under FATCA, Israeli banks identify US account holders and report them, through the Israel Tax Authority, to the IRS, and many banks have restricted or stopped investment services for US persons. A demand to sell your stocks may therefore reflect the bank's own policy rather than any legal duty. Before selling, it is worth checking whether the holding can be kept, moved to another Israeli custodian that still serves US clients, or sold in an orderly way on your timetable rather than the bank's.

From our practice

An American citizen who had lived in Israel until recently moved abroad for an open-ended period. His Israeli bank began calling him with warnings: he had to clarify his residency status, because if he was no longer an Israeli resident he would have to sell all his shares. He did not want to sell. He was a major shareholder in several companies and held restricted stock, where a forced sale would have been a serious problem.

We took over the contact with the bank, clarified what his change of residence actually required, and handled the matter for him without his having to return to Israel.

Tax Planning

Israeli & Foreign Tax Implications for Non-Resident Shareholders

The Israeli tax treatment of non-resident shareholders is generally favorable - but it requires proper documentation and certification. The home-country tax implications are separate and require coordination with the shareholder's foreign tax advisors.

Section 97(b2): Traded Securities

A foreign resident is 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. Shares held from before a company's listing are taxed on the part of the gain that accrued before listing, under Israeli tax law.

Section 97(b3): Private Company Shares

Shares of a private Israeli company carry a separate exemption with stricter conditions: no permanent establishment, the shares were not bought from a relative, and since 1 August 2013 the company's value may not derive mainly from Israeli real estate. Each case requires individual assessment.

Declaration or Tax Assessor Approval

For traded securities, the bank or broker releases the proceeds without withholding once the foreign resident's declaration is on file - a declaration the bank renews every three years. Where the case requires it, for example with non-traded shares, we obtain approval from the tax assessor at the Israel Tax Authority.

U.S. Tax Coordination

For U.S. taxpayers, the sale must be reported on the U.S. tax return regardless of the Israeli exemption. We provide documentation suitable for IRS Form 8938, FBAR (FinCEN 114), and Schedule D - and coordinate with the client's U.S. accountant.

UK / Canada / Other Foreign Tax

UK residents may have HMRC reporting obligations on capital gains; Canadian residents have CRA reporting requirements; other jurisdictions have their own rules. We provide the documentation needed for foreign reporting, in coordination with local advisors.

Section 102 (Employer-Grant Shares)

Where shares originated from an employer stock-option plan or restricted stock unit grant, Section 102 of the Income Tax Ordinance applies - with specific rules on the holding period, beneficial tax treatment, and trustee involvement. Requires specialized handling.

Merger, tender offer or private sale

When shares are sold in a merger, a tender offer or a private company sale, the buyer usually pays through a paying agent. Foreign holders are asked to sign a declaration of their status for Israeli tax purposes, and without it tax may be withheld from the consideration. In private deals the paying agent may hold the proceeds for up to about six months while a withholding tax exemption certificate is obtained from the Israel Tax Authority. We prepare the declaration and the application, so the funds are released to you in full.

Worldwide Service

Shareholders We Represent, Country by Country

We represent foreign shareholders living anywhere in the world in the sale of Israeli securities - by Zoom, email, and notarized Power of Attorney with Apostille. Services in English and Hebrew. No travel to Israel required.

The Israeli securities transfer process is largely the same regardless of where the shareholder resides - what changes is the procedure for executing the Power of Attorney and the apostille requirements in each jurisdiction. Click on your country below to see how we work with shareholders in your jurisdiction.

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United States

Most of the shareholders we represent live in the United States - from New York and New Jersey through Florida, California, and beyond. Common scenarios include U.S. citizens holding old employer-grant shares in Israeli tech companies, dual nationals with TASE-listed holdings, Americans who inherited Israeli shares, and former Israelis who never closed their Israeli trustee accounts.

The Israeli process is handled entirely through Power of Attorney, with documents executed before a local U.S. notary and apostilled by the Secretary of State of the relevant state. Sale proceeds are wired in USD directly to the shareholder's U.S. bank account - no need to open or maintain an Israeli account. Coordination with U.S. tax counsel is straightforward: we provide documentation suitable for IRS Form 8938, FBAR (FinCEN 114), and Schedule D filings. Our U.S. direct line (+1-310-735-4210) provides convenient access during U.S. business hours.

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United Kingdom

British shareholders with Israeli securities often face HMRC reporting obligations alongside the Israeli process. We handle the full Israeli proceedings - trustee liaison, sale execution on the TASE, Section 97(b2) foreign-resident exemption, and proceeds transfer to the UK bank account in GBP. Particularly common scenarios include UK residents who inherited Israeli shares from a relative, former Israelis now living in London or Manchester, and UK pension funds or trusts holding Israeli positions.

Power of Attorney documents are prepared in English, executed before a UK notary public or solicitor, then apostilled by the FCDO (Foreign, Commonwealth & Development Office) for use in Israel. No travel to Israel is required. Where the securities sit alongside inherited Israeli real estate, we coordinate the share sale with the inheritance process in a single engagement.

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Canada

Canadian residents holding Israeli securities - whether from old employer grants, family inheritance, or direct investment - benefit from our fully remote service. We handle the Israeli process from Toronto, Montreal, Vancouver, and elsewhere across Canada: trustee liaison, sale execution, the Section 97(b2) exemption, and proceeds transfer in CAD to the Canadian bank account.

Power of Attorney documents are executed before a Canadian notary or lawyer and apostilled or authenticated under the appropriate Canadian procedures (the rules differ by province - Quebec under civil law, Ontario and BC under common law). We provide documentation suitable for CRA reporting and coordinate with Canadian accountants on the home-country tax aspects of the sale.

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France

The Franco-Israeli connection runs deep - many French families hold Israeli securities alongside their property in Netanya, Tel Aviv, Herzliya, and Ashdod. We represent French shareholders in Israeli securities transactions and routinely coordinate with French notaires on cross-border transfers. The interaction between French tax law and Israeli securities regulations often requires careful coordination - particularly for shares originally received through employer stock plans.

Power of Attorney documents are prepared in English (with French translations where helpful), executed before a French notaire, and apostilled by the French Court of Appeal. Sale proceeds are wired in EUR directly to the French bank account. Where the securities are held alongside inherited Israeli property, the engagement is coordinated with the Israeli inheritance process.

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Australia

Australian residents holding Israeli securities benefit from a straightforward apostille process under the Apostille Convention. We handle the full Israeli proceedings for clients in Sydney, Melbourne, Perth, Brisbane, and across Australia - including coordination with Australian tax counsel on the ATO reporting aspects of the sale. Sale proceeds are wired in AUD directly to the Australian bank account.

Time-zone differences (8-10 hours ahead of Israel) are managed through email and asynchronous communication, ensuring smooth progress without requiring late-night phone calls. The Israeli process - Power of Attorney, trustee liaison, tax certificate, sale execution, and final proceeds transfer - typically takes 4-8 weeks for matters involving Australian shareholders.

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Brazil

Brazilian shareholders and Israelis residing in Brazil with Israeli securities, trustee-held shares, or inherited Israeli stock. We handle remote sale of TASE-listed shares, the Section 97(b2) exemption, and proceeds transfer to Brazilian accounts in USD or BRL. The Brazilian-Israeli community has a long history, and inherited securities often involve shares dating back decades held at major Israeli trustees.

Services available in Hebrew and Spanish (and English). Power of Attorney is executed before a Brazilian notary (tabelião) and apostilled - Brazil has been a signatory to the Apostille Convention since 2016, which streamlines the process considerably.

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Argentina

Argentine shareholders and Israelis in Argentina with Israeli securities matters. Remote proceedings managed end-to-end - TASE share sale, trustee coordination, tax clearance, and proceeds transfer to Argentine accounts. The Jewish community in Argentina is one of the largest in the diaspora, and Israeli securities matters arise frequently across generations - particularly inherited shares discovered during estate administration.

Services in Hebrew and Spanish provide direct communication without language barriers. Argentina is part of the Apostille Convention, so Powers of Attorney executed before an Argentine notary are recognized in Israel through standard apostille procedures.

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Russia & Ukraine

Israelis in Russia and Ukraine with Israeli securities, trustee-held shares, or inherited Israeli stock. Remote proceedings - TASE sale execution, trustee liaison, tax clearance, and proceeds transfer. The Russian-speaking community is one of the largest immigrant groups in Israel, and inherited or dormant Israeli securities often appear in trustee accounts of former Soviet citizens who emigrated decades ago.

Document execution and authentication procedures differ depending on the current diplomatic situation - we provide tailored guidance on the appropriate notarization and authentication route at the start of each engagement, ensuring documents are properly executed the first time and the process moves forward without delays.

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Portugal

Portuguese residents and Israelis in Portugal with Israeli securities matters. Remote handling of TASE share sales, trustee coordination, the Section 97(b2) exemption, and proceeds transfer to Portuguese accounts. Portugal has become a popular destination for Israelis seeking EU residency, particularly through Sephardic citizenship programs - creating a growing community with cross-jurisdictional legal needs including liquidation of Israeli holdings.

Services in English, Hebrew and Spanish. Portugal is a longstanding signatory to the Apostille Convention, which simplifies document authentication considerably.

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Other Countries

We have represented shareholders from across the diaspora - South Africa, Germany, Switzerland, Belgium, Netherlands, Spain, Italy, Mexico, Uruguay, Moldova, and many other countries. The Israeli securities transfer process is largely the same regardless of where the shareholder resides - what changes is the procedure for executing the Power of Attorney and the apostille requirements in each jurisdiction.

After 19+ years of cross-border practice, we are familiar with the documentation requirements for every major jurisdiction. Contact us with the country of residence and we will assess the documentation requirements together, provide country-specific instructions for the Power of Attorney, and outline a realistic timeline for the full sale and proceeds transfer.

Why Eliyahu & Co.

Why Foreign Shareholders Choose Our Firm

We are not a large firm - and that is the point. Each matter is handled personally by the founding attorney, with direct attorney access throughout. For cross-border securities transactions where every step matters, this continuity is the value.

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Founding Attorney Involvement

Adv. Reut Eliyahu handles each securities matter personally - from first consultation through funds received. No transfers to junior staff. You always know who is handling your case.

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In-House Notary Services

Adv. Eliyahu is a licensed Israeli notary. Notarial documentation can be issued in-house - saving time and coordination on cross-border documents that require notarial certification.

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Any Holder, Any Structure

Whether the shares sit with a trustee, a bank's nominee company or a broker, we know how each works and deal with the holding entity directly - which removes friction at every step.

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19+ Years in Practice

Cross-border securities and corporate matters are a core practice area for our firm - not a peripheral service. Each engagement draws on direct prior experience with similar transactions, with deep familiarity in the Israeli trustee system, TASE procedures, and the Israeli Tax Authority practice.

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Direct Access

Direct WhatsApp, email, and phone access. No call-center buffers. Foreign shareholders coordinating across time zones value this directly - questions get answered in hours, not days.

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Full Remote Capability

Every step of the process is handled remotely. No travel to Israel required. Foreign shareholders in the US, UK, Canada, France, Australia, and worldwide complete engagements without leaving their home country.

Ready to take the next step?

Free initial consultation. No obligation. Custom fee structure based on the specifics of your matter. Available by email, phone, or Zoom - at your convenience across time zones.

About the Attorney

Adv. Reut Eliyahu - Founding Attorney & Notary

Adv. Reut Eliyahu - Israeli attorney specializing in cross-border securities transactions for foreign shareholders, Eliyahu & Co. Law Office, Herzliya Pituach

Adv. Reut Eliyahu

Founding Attorney & Notary · Eliyahu & Co. Law Office

Adv. Reut Eliyahu founded Eliyahu & Co. as a firm specializing in cross-border legal services for non-resident clients - with a particular focus on Israeli securities transactions, cross-border real estate, and Israeli corporate matters for foreign shareholders. A member of the Israel Bar Association since 2007 (License No. 47439), with 19+ years in practice, she holds LL.B and MBA degrees and is a registered notary and arbitrator.

The firm's securities practice covers the full process for foreign shareholders disposing of Israeli holdings - public company shares (TASE-listed and dual-listed), private company shareholdings, trustee-held securities and shares held through bank nominee companies, Israeli bonds and debentures, mutual fund units, and the specialized handling required for shares of real estate holding companies ("Chevrot Gush Chelka"). The work operates within the framework of the Israeli Income Tax Ordinance (with particular attention to Sections 97(b2) and 97(b3) for the non-resident exemption, Section 100A for the exit tax and Section 102 for employer-grant shares), the Companies Law, 5759-1999 (full Hebrew text of the Companies Law), and the regulations of the Israel Securities Authority.

Reut handles each securities matter personally - from first consultation through funds received in the shareholder's foreign account. Foreign shareholders coordinating across time zones particularly value this continuity: a single, reliable point of contact who knows the case in detail. Beyond securities, the firm's full practice covers Israeli inheritance and succession law, corporate and business law, foreign legal opinions on Israeli law, and notarial and apostille services - all of which frequently intersect with cross-border securities matters.

The firm is based in Herzliya Pituach and serves foreign shareholders from across the diaspora - the United States, Canada, the United Kingdom, France, Australia, and worldwide. Most engagements arrive by direct referral from previous foreign clients.

📍 The first consultation is free and without obligation.

⚖️ Israel Bar License No. 47439 🎓 LL.B + MBA 🏛️ Notary ⚖️ Registered Arbitrator 🌍 EN / HE 💻 Remote Service
Client Reviews

What Our Clients Say

★★★★★

Shareholders who came to us from abroad

Many of our clients reach us by referral from shareholders we represented before. Each review on the firm's Google Business Profile comes from a client who worked directly with Adv. Reut Eliyahu.

Since 2007Member of the Israel Bar
No travelHandled fully remotely
NotaryIn-house notarial services
US line+1-310-735-4210

The stars in this section are the rating on the firm's Google Business Profile. The rating at the top of the page is the visitor rating for this page only. They are two different measures.

Frequently Asked Questions

Selling Israeli Shares as a Foreign Shareholder - Common Questions

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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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? +
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.
Contact

Discuss Your Matter - Free First Consultation

Tell us briefly about the Israeli shares you wish to sell - where they are held, the tax residency of the shareholders, and any documentation you have. We will get back to you within one business day. The first consultation is free and without obligation.

You can also read more about Israeli inheritance law, corporate and business law, foreign legal opinion on Israeli law, and notary and apostille services.

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🇮🇱 Office Phone (Israel)
+972-74-704-7104
🇺🇸 US Phone
+1-310-735-4210
💬 WhatsApp
+972-74-704-7104
Address

4 HaOgen Street, Herzliya Pituach, Israel

Office Hours

Sun - Thu: 08:00 - 19:00
Fri: 08:00 - 13:00
(Israel Time)

Languages

English · Hebrew · Spanish

Selling Israeli Public Company Shares from Abroad?

Free first consultation — no obligation, no fee.
We'll review your holdings, coordinate with the Israeli trustee, and handle the entire process remotely — including for shareholders without an Israeli bank account.