Financing Israeli Real Estate Purchases as a Foreigner
Foreign Citizen Bank Accounts
Currently, foreign citizens have the ability to open Israeli bank accounts, with no substantial restrictions in the initial process. Although there are no immediate setbacks, there are restrictions that come into play during the next steps of using this account. There are many obstacles that you may face when financing Israeli real estate purchases as a foreigner, during the process of transferring funds from abroad to the local Israeli account. These obstacles may require a great deal of explanations in order to confirm the legality of the transfers and the purpose of the Israeli account.
Explanations for Foreign Bank Accounts in Israel
Depending on the situation, the owner of the account abroad or in Israel may be a person or a company. There are several different explanations as to why a foreign citizens needs to obtain a private bank account in Israel, but a few of the most common are as follows:
- If the person residing in Israel is the founder of a company abroad, they will need to provide the bank with official documentation of the company to ensure the legitimacy of the funds entering the account.
- If the person in Israel is an employee or adviser of the foreign company, and they receive a salary from abroad into this account, the bank may require documentation or a contract to prove the authenticity of the funds.
- If the person received a credit from the foreign company, the bank will require a loan agreement.
Purchasing Real Estate as a Foreign in Israel
As for foreign citizens who desire to purchase property in Israel, they must first open a trust account in Israel. The process is extremely similar to that of opening a private bank account, but there are a few extra steps involved in this process, primarily being that the trustee will manage the account on behalf of the beneficiary. The bank will require an explanation regarding the nature of the relationship of the funds.
Ideal way to Purchase Real Estate in Israel
The most convenient way to transfer these funds for the purchase of real estate in Israel is to do so using a private Israeli account. This disregards the need for a declaration and explanation of the relationship between the funds and the account.
If you require help opening a bank account or making a real estate purchase in Israel, contact us: