FBAR Filing for US Expats in Israel
Israel has a large population of US citizens and dual nationals. Israeli bank accounts, pension funds, provident funds, and the popular Keren Hishtalmut (education funds commonly used as savings vehicles) are all reportable on FinCEN Form 114. Many US-Israeli dual citizens are unaware of their FBAR filing obligations.
Approximately 200,000 US citizens live in Israel
Common Israel Banks Reported on FBAR
Israel Account Types Reportable on FBAR
- Cheshbon Over (checking accounts)
- Cheshbon Chisachon (savings accounts)
- Keren Pensia (pension funds)
- Kupat Gemel (provident funds)
- Keren Hishtalmut (education/training funds)
- Tik Hashkaot (investment portfolios)
Israel Pension & Retirement Account FBAR Rules
Israeli pension funds (Keren Pensia), provident funds (Kupat Gemel), and education funds (Keren Hishtalmut) are all reportable on FBAR. The US-Israel tax treaty provides some relief for certain pension distributions.
Key FBAR Considerations for Israel
- !Keren Hishtalmut (education/training funds) are reportable even though commonly used as savings vehicles
- !Kupat Gemel (provident funds) are reportable foreign financial accounts
- !Israeli pension funds may be classified as PFICs
- !Many US-Israel dual citizens are unaware of FBAR obligations
ILS/USD Currency Conversion
FBAR requires reporting account values in US dollars. FBAR Direct automatically converts Israeli New Shekel (ILS) balances to USD using the Treasury Department's end-of-year exchange rate, so you can enter your account values in ILS.
File Your FBAR for Israel Accounts
Most people finish in under 10 minutes. Automatic ILS/USD conversion included.
Start Filing — From $59