Transferring funds to Israel in order to purchase real estate in Israel can be a lengthy and tedious process, due to the strict regulations imposed on international financial transactions. Banks and financial institutions are subject to close scrutiny to avoid illegal activities such as money laundering and terrorist financing. This can make the process of transferring funds complicated and time-consuming for people wishing to buy property in Israel from abroad.
International Bank Transfers
Since Israel joined the Organisation for Economic Cooperation and Development (OECD) a few years ago, international bank transfers have been subject to even stricter regulations. Israeli banks must verify the identity of the customer and collect information about the transactions, such as the source of the funds and their intended use. The bank must ensure that the source of any funds transferred from abroad is legitimate and not connected to any illegal activities. In addition, before funds can be transferred, you are required to have to have a bank account in Israel in your name, which also requires certain documentation.
The documents required to make a transfer can vary between financial institutions. Israeli banks often require that documents submitted be translated into Hebrew (by a sworn translator). Commonly requested documents include your recent tax returns, pay slips, accountant documentation, etc.
Importing Cash to Israel
If you are making Aliyah or have decided to bring your funds to Israel in cash, it is important to familiarize yourself with the relevant regulations. According to the Discount Bank website, in Israel, amounts under 100,000 shekels do not require a customs declaration, whereas amounts over 100,000 shekels must be declared. If you are making Aliyah, amounts under 1,125,000 shekels do not require a customs declaration.
Although cash deposits are possible in banks, these transactions are highly regulated from a tax perspective. Therefore, the amounts allowed are very limited and vary between financial institutions.
Online Money Transfers
Transferring money online is another option you may be interested in. Online money transfer platforms offer a convenient and affordable alternative but are also subject to strict regulations and must comply with government rules and safety standards. In order to aid our customers as much as possible, Immo Israel has partnered up with a specialized online money transfer platform from abroad to Israel. By using our partner’s services in order to purchase real estate in Israel, customers benefit from a competitive exchange rate, regardless of the amount being transferred. Our partner also offers reduced transfer fees and a dedicated customer service in English to help customers abroad navigate the various regulations. This will allow you to transfer funds in a secure, simple and, most importantly, fast, manner.
For more information about our partner's platform, please fill out this contact form with your questions or details about your situation. We are always happy to help and will contact you as soon as possible.
