The Israeli banking system is a reliable and stable institution. The strong country’s strong economy also guarantees the safety and security of client funds. There are few banks in Israel, but they have all been operating continuously for several decades. That fact is one more proof of the reliability and strength of the banking system. A citizen of the country and a non-resident alike can open an account in an Israeli bank.
Banks in Israel
There are eleven commercial banks, four foreign credit and financial institutions, and two joint service companies in Israel. All these organizations are regulated by the Central Bank of Israel. Five main groups of eleven banks control the majority of financial transactions in the country.
The leading Israeli banks include:
- Hapoalim Bank – operating since 1921;
- Leumi Bank – founded in 1902;
- Discount Bank – founded in 1935;
- Mizrahi-Tefahot – on the market since 1923;
- First International Bank of Israel – operating since 1975.
The two-tier banking system was created in Israel in 1954. It has become the firm foundation for the safety and distribution of investments. The system acts as a distributor of client securities on stock exchanges. All financial institutions have mobile applications for online account management and websites in English. The last time a banking license was issued here was forty years ago. The banking services market in the country is well-established and does not imply any unpleasant surprises. During the 2008 crisis, when even the most seemingly stable banks experienced some turbulence, Israeli financial institutions not only survived but did not even request government support, coping with the crisis with their own resources. Israel’s economy, even in turbulent times, remains stable and reliable.
Pros of having an Israeli bank account
Non-residents can open an account with an Israeli bank and count on receiving a range of specialized services. Each financial institution has its criteria for cooperation. Foreigners can open both a current and a savings account here. The first option is optimal if there is a need to ensure daily operations (payment for goods and services). The second option implies the presence of fixed interest rates on deposits. Each account has its own IBAN, which guarantees reliable processing of international transfers.
Advantages of an account with an Israeli financial institution:
- asset protection;
- transfers from anywhere in the world;
- plastic cards of any format (multi-currency, credit, debit, gold, platinum, etc.);
- the ability to buy and sell securities on stock exchanges (the bank acts as a broker);
- installment plan without overpayments;
- access to credit and mortgage banking products on favorable terms;
- access to global capital markets;
- favorable deposit rates.
Israel does not apply any significant restrictions connected with the potential clients’ countries of origin. Naturally, applicants undergo preliminary due diligence; this condition for opening an account in an Israeli bank applies to all applicants without exception. All potential and current clients need to prove the legality of the origin of the funds that are to be transferred to and from their accounts.
It is important to note that for the first ten years, not only non-residents, but even new repatriates do not pay taxes on income received abroad. Therefore, it is beneficial to open accounts here for those who want to accumulate funds received as a result of business activities in another country in a safe place. Trusts and foundations are also not subject to tax on foreign income.
Private banking in the country
Private banking services for wealthy clients involve personal service, exclusive banking services, financial planning, analysis and modeling of an investment portfolio, etc.
Wealthy clients can count on individual support from leading banking specialists and highly professional advisors who provide advice tailored to their precise needs.
Many Israeli financial institutions have representative offices and branches abroad, which allows non-resident clients to receive global, personalized service outside of Israel.
How to open an account in an Israeli bank
We offer comprehensive services in Israel relating to issues beyond opening bank accounts. We can also help with investments, organizing a business in the country, purchasing local real estate, and obtaining Israeli citizenship.
To start an account in an Israeli bank, you must provide identification, documents confirming the origin of funds, and other documents upon request.
Our banking services include:
- opening bank accounts;
- professional preparation of KYC documentation;
- coordination of bank compliance procedures and successful money transfers from abroad;
- preferred banking commissions and tariffs.
The minimum deposit is from 500,000 USD.
Assistance in purchasing real estate in Israel:
- selection and thorough inspection of real estate for purchase + assisting in financing;
- legal support;
- property management and rental.
Assistance in forming an investment portfolio:
- general strategic planning of the investment portfolio;
- tax optimization;
- privileged conditions at Top Invest developments;
- access to leading venture capital funds.
Relocation and business registration issues:
- assistance in relocating and starting a business in Israel and around the world;
- support for the launch of companies that comply with the requirements of the legislation of various jurisdictions;
- corporate banking and compliance;
- coordination with law firms, accountants, and tax consultants.
We are ready to help you and your family at every step of moving to Israel. If you are interested in opening an account in an Israeli bank, registering a local company, making profitable investments, or obtaining Israeli citizenship, contact us through the communication channels indicated on the website. Our experts will develop customized solutions tailored to your specific needs.