Quick Answer: Foreign nationals can inherit Israeli assets. The key step is obtaining a Succession Order (or probating a foreign will) through the Israeli Registrar of Inheritance. Israel has no inheritance tax — but other taxes and administrative costs apply.

1. Overview

Each year, thousands of foreign nationals and diaspora families find themselves unexpectedly dealing with Israeli inheritance. A relative passes away leaving an Israeli apartment, a bank account in Tel Aviv, or Israeli securities — and suddenly the heirs are confronted with a legal system they know nothing about, in a language most do not speak.

This guide is designed to give you a comprehensive understanding of Israeli inheritance law from the perspective of a foreign heir. We will cover the legal framework, the procedural steps required to access and distribute an Israeli estate, tax implications, and the specific challenges that foreign nationals face.

The most important thing to know upfront: you will almost certainly need a licensed Israeli attorney. The process involves Hebrew-language filings, court or administrative proceedings, and coordination with Israeli banks and government agencies — none of which can be managed effectively from abroad without local legal representation.

Israeli inheritance is governed by the Succession Law 1965 (Hok HaYerusha, 5725-1965). This law applies to all assets located in Israel, regardless of the nationality or residence of the deceased or the heirs.

The law covers:

  • The validity of wills (four types are recognized)
  • The rights of heirs when there is no will (intestate succession)
  • The procedure for obtaining a Succession Order or Probate Order
  • The distribution of the estate
  • Rights of specific heirs (surviving spouse, children, parents)

The law draws from both English common law traditions and continental European civil law — making it reasonably accessible to lawyers trained in either system, though its specific provisions differ from those of most foreign jurisdictions.

3. Obtaining a Succession Order

A Succession Order (Tzav Yerusha) is the legal document that identifies the heirs of a person who died without a valid will. It is issued by the Registrar of Inheritance (Rasham HaYerushot), a government official operating under the Ministry of Justice, or in contested cases by the Family Court.

Without a Succession Order, it is generally impossible to transfer Israeli assets — banks will not release funds, the Land Registry will not transfer real estate, and brokerage accounts will remain frozen.

Documents Required

To file for a Succession Order, the following documents are typically required (originals or apostilled copies with certified Hebrew translations):

  • Death certificate of the deceased
  • Proof of the deceased's identity (passport, ID)
  • Documents proving the relationship of each heir (birth certificates, marriage certificates)
  • Declaration by the applicant about all known heirs
  • Inventory of Israeli assets (optional at filing stage, but useful)

The Filing Process

A petition is submitted to the Registrar of Inheritance. The Registrar publishes a notice in the official gazette and a newspaper — allowing potential creditors or competing heirs to file objections within 30 days. If no objections are received and the documentation is complete, the Registrar issues the Succession Order. This process typically takes 3–6 months.

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4. Foreign Wills in Israel

If the deceased left a valid will (rather than dying intestate), the procedure changes slightly. Instead of a Succession Order, the executor or heir applies for a Probate Order (Tzav Kiyum Tzava'a), which confirms the validity of the will and authorises its execution.

A foreign will can be accepted for probate in Israel if it meets one of the following conditions:

  • It is valid under the Israeli Succession Law 1965 (four types: handwritten, witnessed, before an authority, oral)
  • It is valid under the law of the country where it was executed
  • It is valid under the law of the country where the testator was a citizen or resident at the time of execution or death

The will must typically be apostilled, translated into Hebrew by a certified translator, and submitted with supporting documentation.

5. Dying Without a Will — Intestate Succession

When a person dies without a valid will, the Succession Law 1965 determines who inherits and in what proportions. The key rules are:

  • Surviving spouse: Receives half the estate plus the family home and household effects (subject to conditions)
  • Children: Receive the remaining half in equal shares. If a child predeceased the deceased, that child's children inherit their parent's share
  • No spouse and no children: Estate goes to parents (equally), then to siblings, then to grandparents, then to the State

The intestacy rules do not distinguish between biological and adopted children, and apply regardless of the child's nationality or place of residence.

6. The Complete Process Step-by-Step

Here is the typical sequence of events for a foreign heir dealing with an Israeli estate:

  1. Engage an Israeli attorney — your first step. The attorney will assess the assets, advise on the process, and manage all filings
  2. Gather and apostille documents — death certificate, relationship proofs, identity documents
  3. File the petition — with the Registrar of Inheritance (or Family Court)
  4. Await publication and objection period — typically 30 days
  5. Receive the Succession Order or Probate Order
  6. Present the Order to each institution — banks, Land Registry, broker, tax authority
  7. Transfer and distribute the estate
  8. File required tax declarations

7. Tax Implications for Foreign Heirs

Israel abolished its inheritance tax in 1981. This means that the simple act of inheriting Israeli assets does not trigger a tax in Israel. However, heirs should be aware of:

  • Betterment tax (mas shevach): When inherited real estate is later sold, capital gains since the original purchase may be subject to betterment tax at 25%
  • Purchase tax exemption: Heirs who receive real estate by inheritance are exempt from purchase tax (mas rechisha)
  • Foreign tax obligations: In your home country, receiving an inheritance may trigger gift or inheritance tax — particularly in the US (Form 3520) and UK (IHT considerations)
  • Rental income: If you choose to keep inherited Israeli property and rent it out, the rental income is taxable in Israel

8. Inheriting Israeli Real Estate

Real estate is by far the most common and complex type of Israeli asset inherited by foreigners. Several steps are required:

  1. Obtain the Succession Order or Probate Order
  2. Submit the Order to the Land Registry (Tabu) or Israel Land Authority (Minhal), depending on how the property is held
  3. Pay any applicable fees and submit a transfer declaration to the Tax Authority
  4. Register the property in the heir's name
Important: If there are multiple heirs and they cannot agree on what to do with the property (sell vs. keep), any heir can apply to the court for an order of partition, which may result in a forced sale.