Open a Bank Account in Israel for a Real Estate Purchase

Why an Israeli Bank Account Is Mandatory

Opening a bank account in Israel is an essential step in any real estate purchase in the country. The Israeli legal and banking system requires that real estate transactions go through a local account. This requirement applies equally to residents and non-residents, without exception.

Practically, your Israeli bank account will be used to: receive the funds you transfer from France for the property payment, make scheduled payments to the developer according to the contract timeline, set up your mortgage (mashkanta) if you take one, pay mandatory taxes (Mas Rechisha, Arnona), and collect rent if you decide to rent out your property.

Without an Israeli bank account, you simply cannot finalize your real estate purchase. That’s why it’s recommended to start this process as early as possible, ideally in parallel with your property search.

Israeli banks suited for non-residents

The Israeli banking system is dominated by five major banks, all of which offer services to non-residents:

Bank Hapoalim and Bank Leumi are the most popular choices among French buyers, thanks to their French-speaking international departments and their experience with non-residents.

Required Documents and Account Opening Procedure

The account opening process for a non-resident is more demanding than for an Israeli resident, due to anti-money laundering (AML) compliance and international tax transparency (CRS) requirements.

Here is the complete list of documents generally required: a valid passport with a certified copy, proof of address dated within the last 3 months (utility bill, tax notice), the last 3 payslips or the latest balance sheet if you are self-employed, the last 3 statements from your French bank account, a recommendation letter from your French bank confirming you are a client in good standing, and a source of funds declaration form.

The process typically takes 2 to 4 weeks from the initial contact to account activation. Some banks require a physical visit for the initial signature, while others accept remote opening via power of attorney.

Remote Account: Is It Possible?

Yes, several Israeli banks allow non-residents to open an account remotely, provided you have a notarized power of attorney in favor of your lawyer. Bank Hapoalim and Bank Leumi are the most flexible in this regard.

The remote process works as follows: your lawyer, with your power of attorney and documents, goes to the branch to initiate the opening. They sign the forms on your behalf, submit the supporting documents, and follow the compliance procedure. You will receive your online access codes by secure mail.

However, some banks may require a video interview to verify your identity. This has become more common since 2024, due to stricter regulatory requirements.

International Transfers: Timelines and Fees

Once your account is open, you will need to transfer the necessary funds for your purchase. SWIFT transfers from France to Israel usually take 2 to 4 business days. The fees are divided into three parts: the sending fee from your French bank (€15 to €50 per transfer), the exchange rate margin (0.5% to 2% depending on the bank and amount), and the receiving fee from the Israeli bank (₪50 to ₪150).

For real estate purchases, the transferred amounts are significant. It is wise to compare the exchange rates offered by your French bank with those from specialized services (Wise, OFX, CurrencyFair), which often provide more competitive spreads for large transactions. Your lawyer can guide you toward the most advantageous solutions.

A crucial point: make sure the transfer clearly states the purpose "real estate purchase" and your file number. This facilitates processing by the Israeli bank and speeds up the availability of funds.

Compliance and Reporting to French Tax Authorities

Opening a bank account abroad is subject to a reporting obligation in France. You must declare the existence of this account to the French tax administration using form Cerfa No. 3916 (or 3916-bis for accounts held through a proxy), which should be attached to your annual income tax return.

This obligation is separate from the France-Israel tax treaty that governs the taxation of real estate income. Failure to comply with this declaration exposes you to a fine of €1,500 per undeclared account, increased to €10,000 if the account is located in a non-cooperative state (which is not the case for Israel).

IsraelStart supports you throughout this process

Opening a bank account in Israel is an integral part of the IsraelStart support service. Our team guides you in choosing the bank best suited to your profile, prepares all the required documents, coordinates with your lawyer for remote opening if necessary, and ensures your French tax declaration is in order.

This process can be fully managed from abroad thanks to our turnkey service.