Allwira & Angel specializes in providing a wide range of consulting, financial and taxation services for new immigrants, relocation employees, returning residents from Germany, German citizens who possess assets and capital in Israel and Israeli residents who possess bequeathed assets in Germany and vice versa.
New immigrants and returning resident
Following the decision to leave a country that you live in and to change your place of residence, different economic, legal and taxation issues arise. Certain legal and accounting issues arise when a resident of Germany decides to leave to Israel permanently and become new immigrant or when Israeli citizen decide to come back to Israel after few years of German residency. Returning resident who cancels his permanent residency in Germany, is eligible for tax exemptions as well as for assistance by the Ministry of Aliah and Immigrant Absorption.
Generally, “Toshav Hozer” (returning resident) and “Ole Hadash” (new immigrant) are entitled to various tax reliefs for a period of 6 or 10 years from the date of their immigration. Returning residents who lived overseas for a minimum of 10 years are eligible for an exemption from income tax on overseas income for a period of 10 years. In order to understand if a returning resident is entitled to tax exemptions it is required to set where individual’s center of life is and when a residence cancellation happened. According to timing of resident cancelation de facto and double taxation treaty, it is possible to determine the tax deduction share. We strongly recommend to counsel with our experts in Germany-Israel legislation and taxation in order to optimize tax savings.
Another aspect of international taxation issues is for relocation employees and employers. Taxation planning for multi citizenship workers that live, work and hold assets in different countries is one of our fields of expertize. Taxation issues regarding spouse’s income and assets, reporting requirements in Israel and Germany and center of life definition demand professional treatment in order to avoid double taxation and penalties. Moreover, distinction between “white-color” and “blue-color” workers in terms of taxation is not less important than other issues. Allwira & Angel local legal and accounting experts guide its clients and prepare them for significant change in their professional life.
Management of estates and inheritances
According to Israeli legislation there is no inheritance or gift tax in Israel so far. However, since Israel is multinational country many citizens hold dual citizenship and are exposed to foreign legislation. On the one hand, German citizens who possess assets in Israel as inheritance or gifts or Israeli residents who possess assets in Germany might enjoy tax exemptions if they manage their assets properly. On the another hand, German citizens who received a property as a gift from successor at least 10 years before his death, the gift will not considered as a heritage and will be exempted from tax payments in Germany. In order to optimize the management of estates and inheritances we strongly recommend to counsel with our experts and, if possible, to plan estates management in advance and not to wait until last minute.
International assets management for German and Israeli citizens
German citizens that hold assets in Israel and Israeli citizens who possess assets, properties and bank accounts are recommended to consult with experts regarding taxation and deductions, reporting requirements:
- Holding an apartment in Israel and its tax exemptions
- Holding company shares and tax planning regarding dividends and profits
- Bank accounts, investments in stock markets and securities holding
Allwira & Angel team strongly recommend our clients to be assisted by local expert in individual tax planning regarding relocation issues, international asset management, management of estate and inheritances, immigration and return residence. Our clients, choose us as strategic partners, accounting and business consultants for their international life and businesses.