The Foreign Heir's Guide: How to Claim Real Estate and Assets in Israel from Abroad

Adv. Samuel Even

The Foreign Heir's Guide: How to Claim Real Estate and Assets in Israel from Abroad

The Foreign Heir’s Guide: How to Claim Real Estate and Assets in Israel from Abroad

The bottom line: Thousands of foreign residents discover each year that they’ve inherited assets in Israel — an apartment, a bank account, land, rights. But between the discovery and the realization stands a bureaucratic path that can take months and even over a year. Translations, apostilles, foreign law opinions, land registry registration — every mistake delays the process.

The good news: Israel has no inheritance tax. The less good news: Without proper professional handling, assets can remain “stuck” — and in extreme cases, be transferred to the Administrator General’s management and ultimately to state ownership.

First Step: Which Law Governs Your Inheritance?

This is the question that determines everything. Section 137 of Israel’s Inheritance Law establishes a clear but complex rule:

The rule: The law governing the inheritance is the law of the deceased’s last country of residence — where they lived on the day of death.

The critical exception: For real estate in Israel, Israeli law alone applies, regardless of where the deceased lived.

In plain terms: If your parent lived in New York and passed away there, but owned an apartment in Tel Aviv and a bank account in Israel — the apartment will be divided under Israeli law, while the bank account may be divided under New York law. Both legal systems can apply simultaneously to the same estate.

The Realization Path: 7 Practical Steps

Step 1: Locate All Assets in Israel

Before beginning proceedings, map all assets: apartments and real estate (check with the Land Registry/Tabu and the Israel Land Authority), bank accounts, investment portfolios, insurance policies, pension funds, and rights in Israeli companies.

Step 2: Prepare Your Document Package

This is the stage where most foreign heirs get stuck. Required documents include:

Death certificate — original or certified, with an apostille stamp if issued in a country that signed the Hague Convention. If the country isn’t a signatory, consular authentication is required.

Notarized Hebrew translation — every document not in Hebrew must be translated by a certified notary.

Power of attorney to an Israeli lawyer — certified before a notary abroad, with apostille. Without a power of attorney, you cannot act in Israel remotely.

Heirs’ affidavit — detailing the family relationship to the deceased and details of all heirs.

Foreign law opinion (if the deceased was a foreign resident) — an expert must detail how inheritance is distributed under the laws of the country of residence.

Step 3: File for an Inheritance Order or Probate Order

The application is filed online through the Registrar of Inheritance Affairs. Fee: NIS 495 to open a case + NIS 66 for official gazette publication. After filing, the application is published to allow objections. If there are no objections, the order is typically issued within several months.

Important point: A will executed abroad doesn’t automatically take effect in Israel. Even if you have a Probate or Grant of Probate from another country, you’ll need a separate Israeli proceeding.

Step 4: Receive the Digital Order

Since 2022, inheritance orders and probate orders can be received digitally with an electronic apostille. This is a significant improvement that shortens the process.

Step 5: Claim Assets from Banks and Financial Institutions

With the order in hand, approach banks, insurance companies, and financial bodies. Each has its own forms. Banks sometimes require international forms: W-9 for American heirs, W-8BEN for American companies. The fund transfer process can take additional weeks.

Step 6: Register Real Estate Rights (Tabu)

If you inherited an apartment, you need to register the inheritance at the Land Registry. The application includes: the inheritance/probate order, an affidavit, capital gains tax clearance (even if exempt), and certified identification documents. Note: An application signed by a consul is not accepted — it requires an Israeli lawyer’s signature.

Step 7: Tax Implications — What Everyone Forgets

Israel has no inheritance tax. However:

Capital gains tax (Mas Shevach) — if you sell the inherited property, capital gains tax may apply. Heirs may be eligible for exemptions under certain conditions (for example, if the deceased owned only one apartment).

Tax in your country of residence — Israel doesn’t impose inheritance tax, but your country of residence may. The US, UK, and many European countries impose estate or inheritance taxes. There may also be income tax obligations on estate-derived income.

5 Traps That Delay Foreign Heirs

Trap 1: Documents Without Apostille

A document without apostille is inadmissible in Israel. Any apostille delay delays the entire process. Solution: Prepare all documents with apostille before filing.

Trap 2: Non-Notarized Translation

A regular translation isn’t sufficient — you need a certified notarized translation. Solution: Use an Israeli notary working internationally, or a local notary whose translation will be authenticated in Israel.

Trap 3: Missing Foreign Law Opinion

If the deceased was a foreign resident, the court will require an expert opinion detailing inheritance laws in the country of residence. Without it, the process stops. Solution: Commission the opinion in advance from a local attorney in the country of residence.

Trap 4: Administrator General’s Assets

In December 2025, the Israeli government approved a decision to streamline the transfer of abandoned assets to state ownership. If you don’t realize your rights in time, the asset may be transferred to the Administrator General, and after 10 years — to the state. Solution: Don’t delay. Start the process immediately.

Trap 5: Inheritance Disputes Between Heirs in Different Countries

When heirs are scattered across different countries, each with different lawyers and laws, disputes become dramatically more complex. Solution: Appoint a single Israeli lawyer to coordinate all proceedings in Israel.

Why You Need an Israeli Lawyer — Even from Abroad

You cannot do this alone remotely. Banks require an Israeli lawyer’s signature. The Land Registry requires an Israeli lawyer’s signature. The Registrar of Inheritance Affairs requires a power of attorney to an Israeli lawyer. Without a local representative, the process simply doesn’t move forward.

How Our Firm Can Help

Samuel Even & Co. Advocates assists foreign residents and international heirs in realizing inheritance rights in Israel, including:

  • Full management of inheritance proceedings — from filing for an inheritance order through land registry registration
  • Document package preparation — translations, apostilles, affidavits, and powers of attorney
  • Representation before banks and institutions — releasing funds, transferring rights, closing accounts
  • Tax advisory — capital gains tax, heir exemptions, coordination with country of residence
  • Litigation in inheritance disputes — objections, disputes between heirs, restitution claims
  • Service in languages — Hebrew, English, and Russian

Inherited property in Israel? Don’t wait. Contact us today and we’ll ensure your rights are realized.

03-6348020 | [email protected]