Russians Say Farewell to Banking Summer, and the Israeli salute Tax Holidays 22 August 2018

Russians Say Farewell to Banking Summer, and the Israeli salute Tax Holidays

CONFIDERI Family Office offers the only effective solution in the context of the global tightening of KYC and AML procedure rules

The many benefits of Israeli citizenship.

The freedom of movement. Like, the real one.

An Israeli passport is your ultimate solution for unrestricted visits to the Schengen Area, the UK, Australia1, New Zealand, Japan, Canada, Singapore, and China1. Israeli citizens have visa-free, e-visa, or visa on arrival2 access to 150 countries and territories. The Israeli passport is in the TOP 30 most powerful passports ranked by the freedom of travel (2018 Global Ranking Henley & Partners).3

1.E-visa or visa on arrival required

2. https://visareq.com/visas/isr.html

3. https://www.henleypassportindex.com/assets/PI_2018_INFOGRAPHS_GLOBAL_180215.pdf

Presently, Israeli citizens can obtain a 10-year US visa; and pretty soon, Israelis may be allowed to travel to the US without visas at all.4

4. https://israinfo.co.il/2017/11/13/v-ssha-planiruyut-ustanovit-bezvizovyj-rezhim-dlya-grazhdan-izrailya/


A prestigious jurisdiction

In August 2018, for the first time in seven years, S&P Global Ratings upgraded Israel's credit rating to AA-5. And more importantly, Israel is not going to stop there. In their report, S&P Global Ratings highlighted Israel’s “exceptionally strong economic performance” and predicted a growth rate of 3.3% of gross domestic product over the next four years. 

5. https://www.bloomberg.com/view/articles/2018-08-16/s-p-global-s-new-israel-rating-is-well-deserved

Israel ranked 54 in the Doing Business ranking thanks to it due to its reliable legal, financial, and banking systems. Israeli businesses are never blacklisted, their reputation is impeccable. Existing agreements on the avoidance of double taxation, long-term tax holidays for returnees, various preferential advantages and investment instruments optimize and significantly reduce the tax burden.

Israel is a real safe haven for businesses and their owners.

In May 2016, simultaneously with Russia, Israel joined the Common Reporting Standard or CRS; by now, Israel has only signed a declaration of intent on the automatic exchange of information on financial accounts with Switzerland, and there are no signed bilateral agreements with any jurisdiction.

Benefits for new Israeli citizens.

Israel provides new citizens with a ten-year tax holiday regarding all non-Israeli sourced income and capital gains. For instance, such income as dividends, interest, profits from the sale of property, including securities, is tax-exempt, provided it was derived abroad. The sale of shares and other securities of foreign companies will be exempt from taxes for ten years as well. The only exception is the securities of companies, the main asset of which is real estate in the country of their registration. For income generated in Israel, the rate is progressive with a minimum of 10%. 

Israel actively encourages investment activity. Israel provides additional tax benefits for investors and organizations attracting large investors, for example, a tax exemption of up to 20 years.

Despite the fact that an individual is considered an Israeli tax resident if they were present in Israel at least 183 days in a tax year, there are other criteria by which one can determine their tax residency as an Israeli.

This can help in structuring both your business and personal assets. Israeli law provides opportunities to minimize the tax and reduce the tax burden in general not only in Israel but also in other countries.

A lifelong beach vacation.

Moreover, Israel provides reduced mortgage rates for newcomers, applied up to ten years from the date they obtained Israeli citizenship, and therefore gives a unique opportunity to invest in real estate:  one can purchase real estate with minimal investment of their own funds.

It is worth mentioning, that there is no property tax in Israel: house/apartment owners pay municipal tax. The rate of this tax depends on the location and total area of the property.

Although a tax is paid when you purchase, sell, or donate real estate, in some cases, you can be entitled to tax exemption. Besides, there is no inheritance tax.

Israeli citizenship provides you and your family with an access to advanced medicine. Israel's health system was ranked among the Bloomberg's TOP-10 in terms of efficiency, and among the top ten countries with the highest life expectancy (81.8 years).

Israel's medicine is a fundamental right for its citizens. The Israeli health care system is universal and requires all citizens to have health insurance. The health care system is regulated by the state and is rightfully considered one of the most technologically advanced systems in the world — with its modern equipment and well-trained doctors and nurses. Israel has long been one of the most popular medical tourism destinations.

Israel's education system is considered one of the world's best. Israel ranks among the TOP-20 countries with the best education systems in the world. Israel has an adult literacy rate of 100%. Primary, secondary, and higher education form a comprehensive system. In 2012, the Organization for Economic Cooperation and Development (OECD) has ranked Israel as the second most educated country in the world: 45% of Israelis have secondary or higher education; 78% of money invested in education is taken directly from public funds.

You and your loved ones will be fully protected.

Israel is a country where "people speak like Russians and think like Americans." This relatively small country is made up of really different cities: ancient Jerusalem and modern Tel Aviv, industrial Haifa and resort Eilat. Enjoy coral reef diving in the south and mountain skiing in the north. With its warm climate, modern technologies, friendly atmosphere, own agriculture, the best medicine, Israel is the place to truly enjoy your life.

Citizenship without investment.

Unlike the absolute majority of citizenship programs that require substantial investment in often scarce liquid assets, obtaining Israeli citizenship does not require any major financial or time costs. The Law of Return is an Israeli law, which gives anyone with Jew roots the right to obtain Israeli citizenship.

Process for obtaining citizenship

Consular examination

At this stage, you need to collect documents proving your Jewishness. The CONFIDERI specialists will review your documents and help you get the missing ones, make your family tree, and will prepare you for an interview with the consul.

The consular examination takes one full day.

Preparation takes 2 or 3 months, depending on the completeness of your set of documents and the workload of the consulate.

Approximately 70% of our clients are approved and get their permanent residence visa on their first try.

Receiving your documents in Israel

After obtaining your permanent residence visa, we will escort you to get your identity card (Teudat Zehut) and your foreign passport (Darkon) in Israel. You will leave the airport as a full Israeli citizen.

In addition, we will open a bank account for you, arrange your medical insurance, replace your old driver's license with an Israeli one without having to go through re-examination, and help you resolve any issues related to your new status.