Tax ID Number: Heirs in Israel and the Procedure

Obtaining a Tax Identification Number from the reshut ha-misim for a Foreign Heir

Obtaining a tax identification number for a non-resident is a mandatory step for processing any transaction related to a yerusha. This number allows the reshut ha-misim to identify the heir for the calculation of mas shevach or mas hachnasa. The procedure relies on presenting foreign identity documents and the official succession order.

Differences Between Foreign Tax Identification and the reshut ha-misim Procedure

The Israeli tax system does not rely on an automatic interconnection of international databases. Unlike certain procedures in other countries, the reshut ha-misim does not retrieve your information via your Social Security number or foreign tax ID. You must initiate the process of creating your tax file in Israel independently.

• The absence of an automatic link between foreign Social Security numbers and the Israeli tax system requires a complete declaratory process.
• The distinction between a teoudat zeout number, which is reserved for Israeli residents or citizens, and the specific tax identification number for non-residents.
• The necessity of translating civil status documents through certified translators recognized in Israel for administrative acceptance.
• The role of the tax administration in verifying tax residency to avoid double taxation, relying on international treaties.

A non-resident heir must understand that their status is treated differently than that of a resident. If you already possess a teoudat zeout, your tax number is already linked to your identity. For others, the administration creates a unique identifier that will serve as a reference for all future operations, particularly for the registration of transfer taxes.

The Role of the tsav yerusha in Opening a Tax File

The tsav yerusha is the central pivot for the transfer of assets in Israel. Without this succession order issued by the family court, the reshut ha-misim cannot validate your status as a beneficiary. This document legally proves who the heirs are and what portion of the assets belongs to them. To understand the importance of this document regarding banking matters, consult our article on The tsav yerusha: Heir documentation for Israeli banks.

• The requirement of a succession order issued by the family court to prove heir status to the authorities.
• The verification of reshut ha-misim compliance to ensure that testamentary provisions are respected for tax purposes.
• The presentation of the original document or a certified copy according to Israeli standards, often accompanied by an apostille.
• The link between the order and the identification of real estate assets registered in the tabou, allowing the individual to be linked to the property.

The tax administration uses the tsav yerusha to verify that the transferred assets correspond to the declared succession. If a property is registered in the tabou in the name of the deceased, the transfer to the heir can only be finalized once the heir’s tax identity is established and validated by the court.

Required Documents for an Heir Without a teoudat zeout

Each document must be carefully verified before submission to the reshut ha-misim. An expired passport or a birth certificate without an apostille will result in an immediate rejection of the application. For non-residents, proof of residence is crucial to determine if future income will be subject to taxation in Israel or abroad, according to the Tax Residency Certificate in Israel.

We verify the validity of the identity documents provided by clients to avoid administrative delays. We also ensure that translations of foreign documents meet the standards required by the Israeli authorities.

Managing Tax Obligations on Inherited Real Estate

Acquiring property through inheritance triggers specific tax obligations. The first point of vigilance concerns mas shevach. When reselling a property from a yerusha, the administration calculates the capital gains based on the value of the property at the time of death, rather than the original purchase price paid by the deceased. This distinction is fundamental to the calculation of the tax due.

• The calculation of mas shevach during the resale of property from a yerusha, based on the difference between the value at death and the sale price.
• The impact of property ownership on the heir’s tax residency, which may modify their overall status with the authorities.
• The declaration of rental income generated by the property under mas hachnasa, which applies as soon as the property is rented out.
• The distinction between the value at the time of death (reference value) and the actual transaction value during a subsequent sale.

If the heir decides to rent the property, they must declare this income. In this context, using our property management services allows for the centralization of information necessary for mas hachnasa declarations. Income management must be rigorous to avoid any adjustments during an audit by the reshut ha-misim.

Procedure for Requesting a Number from the reshut ha-misim

The application for a tax identification number follows a strict administrative protocol. It is not a simple online registration, but a file validation process. The administration examines the consistency between the presented identity and the provided succession documents.

1. Submission of the non-resident identification number application form, duly completed and signed.
2. Transmission of supporting documents via mail or through a representative holding a legalized power of attorney.
3. Monitoring the file with the reshut ha-misim services to confirm the assignment of the number and ensure no documents are missing.
4. Archiving the obtained number for future operations at the tabou, particularly when registering the heir as the new owner.

Once assigned, the number becomes the heir’s unique identifier for all interactions with the Israeli state. This number must appear on all tax documents and be communicated to the attorney handling the succession to allow for the registration of property rights.

Division of Responsibilities Between the Heir and the Property Manager

Managing an inherited estate from abroad requires a clear division of tasks to avoid disputes or payment delays. The heir retains legal responsibility for their information, while the manager ensures operational follow-up on the ground.

• The heir’s responsibility to provide authentic and up-to-date identity documents, particularly in the event of passport renewal.
• The role of GII in collecting the necessary documents for the tax file and centralizing documents for the attorney.
• The management of arnona and vaad bayit payments on behalf of the estate to avoid any liens or penalties on the property.
• Coordination with attorneys to integrate the tax number into property deeds and transfers to the tabou.

We collect proof of arnona payments to transmit them in case of a request from the reshut ha-misim. We also monitor vaad bayit charges to ensure the building remains in good condition and that the heirs’ rights are not affected by common area debts.