Invest or Inherit In Israel – Legal Assistance Matters

Author: Rahav Aharoni
by Rahav Aharoni
Posted: Aug 12, 2017

Warren Buffett made his first major acquisition outside the United States in Israel. Facebook’s second-largest R&D center is housed in Israel. Silicon Valley giants like Google, Microsoft, Intel and more than 300 other multinationals like Apple, Samsung, HP, GE, Philips, Cisco, Barclays, and Hutchison have set up offices in Israel.

Barclays and Hutchison have set up offices in Israel.

Indeed, the small country of Israel has emerged as the ideal choice for international investments. It is a hotbed of innovation that is backed by a vibrant economic climate, ambitious entrepreneurs, and an extremely creative workforce.

The investor confidence is extremely positive and people are all over the world are vying to get a share of the Israeli pie. The atmosphere is ripe to invest in Israel and reap the gains from the pulsating ecosystem.

However, the business culture in Israel is greatly different from USA, Canada or UK. For instance, the business world is more flexible, yet remains quite fast paced. Cultural differences also crop up right from greetings and body language to punctuality and more. Israelis conduct themselves in a direct and assertive manner. They are known to behave like one big family and the dealings are on a very informal footing here. However, the informality can be quite misleading as Israelis are tough negotiators and can drive a hard bargain.

USA, Canada or UK. For instance, the business world is more flexible, yet remains quite fast paced. Cultural differences also crop up right from greetings and body language to punctuality and more. Israelis conduct themselves in a direct and assertive manner. They are known to behave like one big family and the dealings are on a very informal footing here. However, the informality can be quite misleading as Israelis are tough negotiators and can drive a hard bargain.

The laws and rules also differ a lot in this startup nation. Foreign investors are often taken aback when they note the lack of specific licensing procedures. Another surprising fact is that there is no Estate tax or other levy on inheritance at all. However, tax rules of the heir’s own country will still be applicable. Furthermore, sale of the inherited property will be taxed in Israel.

Even in case of death of a foreign investor, the Israeli probate courts have jurisdiction over the estate of any person who left assets or real estate in Israel. In the absence of a will, the rules of succession for bequeathing the assets are clearly laid out and the heirs have to apply to the Inheritance Registrar in Israel or the religious court for a succession order.

In sum, a horde of opportunities are beckoning from Israel. Foreign investors need a professional counsel on their side who can provide expert advice about how to conduct business and investments in Israel. The law firm should be intimately aware of the legal, tax and financial landscape including Israel inheritance law.

The good news is that certain law firms based in USA do fulfill this mandate. They are fully geared to negotiate real estate purchases, register properties and even file probate or succession orders as needed. All this can be arranged by the law office without the investor or heir having to travel to Israel even once. Moreover, the proficient attorneys will also educate and advise the investors on their rights and obligations in various situations.

About the Author

The author is a real estate lawyer. He has written the article to highlight some important facts on the Israeli real estate that you need to consider when buying property in Israel.

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Author: Rahav Aharoni

Rahav Aharoni

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Member since: Jul 13, 2017
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