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Five important tips on your way to open a bank account in Israel

03/03/2021

Many international companies with business activities decide to open a bank account in Israel. In the following article, we present 5 selected tips that will help you in choosing a bank, that fit to your business activity in Israel. 

  1. Choosing a bank that supports international business activities

There are over 10 different banks in Israel, but not all of them are suitable for international business activities.

Before choosing a bank In Israel, make sure that the bank’s representatives speak English, so that they can give you a professional answer if you do not know how to speak Hebrew.

  1. Choose the appropriate branch of the Israeli bank

Once you have selected the appropriate bank, it is important to choose the appropriate branch at the bank.

The largest banks in Israel have branches all over Israel, and the major cities in Israel have several branches of the same bank.

It is important to choose the business branch, otherwise you will find yourself in a small branch that does not know or understand your business activity in Israel.

  1. Authorized signature in Israel

If you have business activity in Israel, it is important that payments to the suppliers and payments from clients will be paid in and out the bank account in Israel. This is important following the tax law in Israel.

If you want to pay suppliers by bank transfer, it is important to appoint a representative in Israel who speaks Hebrew, who can provide you with this support and pay the suppliers through the bank’s Internet system.

  1. Check that there is English website that give you the access to the bank account

Not all banks in Israel have an English website, and only a few have an Internet system that provides online access to the bank account.

Make sure that the bank gives you a username and password for accessing banking transactions via the Internet.

  1. Bank commissions

If you have an international business activity, it will probably also include bank transfers between countries, in a number of currencies such as NIS, USD or EURO.

Since the official currency in Israel is NIS, banks charge very high fees, and even higher fees in bank transfers from abroad, or once receiving payments from abroad to Israel.

Make sure what is the rate of the commissions that the bank charges for each transaction, in order to plan your bank a financially activity in the best effective way.

Auren Israel experts have more than 30 years of experience providing taxation assistance and VAT representation to foreign companies. Our tax expert will be happy to assist in all matters as stated above, in order to help your company, choose the most suitable bank for your business activity in Israel.

 

Contact an expert

Yaniv Angel

Managing-Partner, Auren

International taxation expert

[email protected]


Read More:

The alternatives when starting a business in Israel

The registration of a fiscal representative office in Israel