Includes how foreign exchange is managed and implications for U.S. business;

Israel abolished most of its foreign exchange controls in the 1990s. The last major restriction, on the amount Israeli institutional investors may invest overseas, was eliminated at the end of 2002. The main transactions which will no longer be restricted are:

Individuals investments abroad: Individuals are permitted to invest abroad freely, including in land and real estate. Hitherto, such investments were allowed only in time-sharing projects.

Bank accounts: Individuals and companies are permitted to manage bank accounts abroad, in either NIS or foreign currency. Hitherto, only exporters could do so.

Unilateral transfers: All quantitative restrictions applicable to all types of unilateral transfers abroad, including support payments, gifts, and transfers abroad by a resident who has emigrated from Israel, have been abolished.

Holding foreign currency in cash: The restriction on holding foreign currency in cash has been abolished, and payments in foreign currency are permitted in cash or by check, between Israeli residents as well as between residents and nonresidents. The restriction on taking NIS out of Israel and on receiving NIS from nonresidents including receipt of NIS as payment for exports has been removed. It should be noted, however, that as of January 2019, Israeli law prohibits cash payments in Israel over certain amounts (up to NIS 11,000 or 10% of the overall transaction – between businesses, or up to NIS 50,000 – between private individuals).  

Presentation of documents: The requirement to present documents when carrying out a transaction with a nonresident in NIS or in foreign currency has been abolished. However, a report on the nature of such transactions will be required, in order to enable reliable and informed analyses of capital flows to be performed.

Direct activities in foreign currency or with abroad: Such activities will be permitted not only via authorized institutions in Israel, i.e., authorized dealer banks, brokers, moneychangers, and credit-card companies, but directly with foreign financial intermediaries. This will increase competition in the financial sector and improve its efficiency.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.