web analytics
October 14, 2015 / 1 Heshvan, 5776
At a Glance
News & Views
Sponsored Post

US Customers Withdraw $4 Billion from Israeli Banks

JewishPress Logo

Tighter American tax laws have encouraged U.S. citizens to withdraw approximately $2 billion from Israeli banks in less than two years.

“The blow is not just in the drop in assets, but also in the drop in investments. Some of these customers, especially the wealthy ones, use the money to make investments and acquisitions in Israel. There is now little chance that they will make these investments, after they moved the money back to the US,” a banking source told Globes business newspaper.

In some cases, Americans used the money to buy property in Israel, but most of the money was sent overseas.

The Foreign Account Tax Compliance Act (FATCA) at the end of this year will require financial institutions in foreign countries to report bank accounts and assets held for American citizens, who must pay taxes regardless of where they are living. Approximately 100,000  first-generation American citizens live in Israel.

With the absence of a tax advantage by leaving assets in Israel, many Americans began withdrawing their money from local banks

Managed accounts of Americans in Israel are estimated to be valued at billions of shekels.

About the Author: JewishPress.com brings you the latest in Jewish news from around the world. Stay up to date by following up on Facebook and Twitter. Do you have something noteworthy to report? Submit your news story to us here.

If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

3 Responses to “US Customers Withdraw $4 Billion from Israeli Banks”

  1. Charlie Hall says:

    "Tax advantage" is not accurate. "Illegal tax shelter" would be more accurate.

  2. Philip Blom says:

    They would be wise to convert their money to shekels before the US$ crashes.

  3. Philip Blom says:

    They should have shekel accounts as a hedge when the US$ collapses.

Comments are closed.

Current Top Story
Islamic Republic of Iran's President Hassan Rouhani, at the UN, Sept. 28, 2015.
BOMBSHELL: ‘West Falsely Claims Iran Parliament Approved JCPOA’

Printed from: http://www.jewishpress.com/news/breaking-news/us-customers-withdraw-4-billion-from-israeli-banks/2013/07/02/

Scan this QR code to visit this page online: