Transferring Dollars to Israel for a Property Purchase
Transferring Dollars to Israel for a Property Purchase
For American buyers, the purchase agreement in Israel usually sets out a schedule of payments in shekels, often linked to specific dates or milestones. Your money, however, is probably sitting in dollars in the United States. Bridging that gap involves choosing where to convert, how to send the funds and when to do it, while satisfying the documentation requirements of both banks. The process is routine for Israeli lawyers and banks, but it rewards planning. This guide outlines the main routes, the costs to watch and the steps that help each payment arrive on time and in the right amount.
Start With the Receiving Account
Most transactions are easier when you have an Israeli bank account in your name. It gives you a place to receive dollars, convert them to shekels and make payments to the seller, the developer or the tax authority. Opening an account as a non-resident can take time, so begin well before you expect to sign.
In some cases, payments can be routed to the trust account of your lawyer. Your lawyer will explain which arrangement fits your contract.
Ways to Move the Money
The most common route is an international wire from your US bank to your Israeli account. Some buyers use licensed currency transfer services, which may offer different conversion terms. Whatever route you choose, make sure the provider is regulated and that the transfer can be clearly documented.
Avoid informal channels. A transfer that cannot be traced to your own verified account creates problems with compliance checks and can delay the transaction.
Direct wire from a US bank to an Israeli bank
Regulated currency transfer providers
Transfers to a lawyer's trust account when agreed in the contract
Understanding Conversion Costs
The visible wire fee is usually the smaller cost. The larger one is the spread between the exchange rate you receive and the market rate. Banks on both sides may apply their own rates, and intermediary banks can deduct charges along the way.
Ask each provider to show the rate and all fees in writing for a given transfer size. Comparing the final amount that lands in shekels is the clearest way to judge value.
When to Convert
Buyers often ask whether to convert everything at once or in stages. Converting at signing removes uncertainty about the shekel amount you owe, while converting in stages spreads the exposure over time. There is no universally correct answer, and nobody can reliably predict exchange rates.
What matters is that your plan matches your payment schedule and your tolerance for uncertainty. A separate guide on this site discusses currency risk in more detail.
Documentation for Each Transfer
Both the sending and receiving banks may ask about the purpose of the transfer and the origin of the funds. Keep the purchase agreement, your source of funds documents and a note of which payment each transfer covers. This record also helps your lawyer confirm payments to the seller and supports your records for US reporting.
Timing Payments to the Contract
International wires can take several business days, and Israeli and American bank holidays do not align. Friday and Saturday are not regular banking days in Israel, while Sunday is. Send funds with a margin before each due date and confirm receipt with your Israeli bank. Ask your lawyer to confirm when the seller or developer has acknowledged each payment, and keep that confirmation with your records.
Late payment under an Israeli purchase agreement can carry contractual consequences, so do not leave transfers to the last moment.
Tax and Reporting Considerations
Having money in an Israeli account can trigger US reporting obligations, and currency conversion may have tax consequences in some circumstances. Speak with a US CPA before moving large sums, and consult an Israeli tax advisor about the purchase itself. We do not give tax advice, and your situation may differ from general guidance.
Frequently asked questions
Can I pay the seller directly from my US account?
It is sometimes possible, but most lawyers prefer payments to flow through an Israeli account or a trust account so that each payment is clearly recorded and converted correctly.
Should I keep some funds in dollars in Israel?
Israeli banks can hold foreign currency accounts. Some buyers keep dollars until a payment is due, while others convert early. Discuss the choice with your bank and advisors.
What if the wire is delayed by compliance questions?
Respond quickly with the requested documents. Having your source of funds file ready in advance is the best way to prevent delays.
Do I need to tell my US bank the purpose of the transfer?
Banks often ask for the purpose of large international transfers. Answering accurately and consistently with your Israeli documents helps avoid questions.
Elkayam Group
Kobi Elkayam Real Estate Ltd, the company behind Elkayam Group, is based at Rival Street 37 in Tel Aviv and carries forward a family tradition that began in the forties. Three generations on, its work spans development, urban renewal, TAMA 38, pinui-binui and complex multi-party deals, supported by partner companies that can provide guarantees. The Hebrew, English and French speaking team helps American buyers keep payments, lawyers and banks aligned.
Contact us to plan the timing of your purchase so that your transfers and contract work together.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv