| Provider | Amount Received | Fee | Exchange Rate | Speed | ||
|---|---|---|---|---|---|---|
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TorFX | USD $2,600.98 | No Fee | 0.2601 | 1-3 days | more... |
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Moneycorp | USD $2,547.49 | No Fee | 0.2547 | 1-3 days | more... |
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Smart Currency Exchange | USD $2,576.47 | ILS23.82 | 0.2576 | 1-3 days | more... |
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Due to their historical links, Israel and the US have a long-standing trade and investment relations. Much of this centres on the US-Israel Free Trade Agreement, which since 1985 has worked to significantly lower the trade and investment barriers between the two nations. Additionally, there are hundreds of thousands of dual US-Israeli citizens, which means that cross-border currency transfers between the two countries see a high trading volume. Generally speaking, when it comes to making currency transfers between the US and Israel, there are not too many barriers in place. However, transfers may be subject to money laundering and tax controls.
The official currency of Israel is the Israeli new shekel, or the ILS for short. The ILS was introduced in 1986 as a way of reforming the previous currency – the old shekel – which had been experiencing significant periods of inflation. As part of an economic stabilisation plan, the new shekel was launched, which helped to improve economic conditions and trading relations in Israel.
The USD is currently the most actively traded currency and is tied to the strongest economy in the world. In addition to providing a currency peg for a number of currencies across the world, the USD is also the de facto national currency in a number of jurisdictions.
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Thanks to the US-Israel Free Trade Agreement, cross-border flows of goods and services between Israel and the US remain very healthy. In place since 1985, this agreement has fostered a continually improving economic relations between the two countries. The total value of goods traded between them is around $34bn, while the total value of services exchanged is around $13bn.
In addition to the economic relations between Israel and the US, they also have a strong political and social relations. Each year, thousands of duel US-Israeli citizens travel back and forth between the two countries for work purposes, with Israel becoming an increasingly popular tourist destination for US citizens. This has worked to significantly increase the cross-border flows of currency between the two nations.
Both US and Israeli banks maintain a retail presence in each other’s countries, which has improved the ease with which US and Israeli citizens can access banking services while abroad. While many US banks maintain correspondence relations with the major Israeli banks, it is quite common to see Israeli banks in the US. This is mainly limited to larger US cities such as New York, Miami, Chicago, Florida and California. As such, cross-border currency transfers should not pose too much of an issue for either US or Israeli citizens. Additionally, Israel and the US have entered into a bilateral tax treaty with each other, which also helps citizens of both countries to avoid double taxation.
Israeli citizens who wish to live or work in the United States must apply for the appropriate visa and go through an in-person interview at an American consulate or embassy. Besides short-stay visas, there are also a variety of work visas of varying lengths of stay. The type of work visa applied for is typically dependent on the type of work to be performed.
For travel or short visits lasting less than 90 days, a visitor or business visa is currently required. This can be granted after filling out the appropriate online forms and attending an in-person interview at the local American consulate or embassy. For stays over 90 days, an immigrant or non-immigrant visa is required. Please refer to the US Embassy website for more detailed information on different visa types for stays in the US.
Very few restrictions are applied for Israeli citizens who wish to own or rent property in the US. However, the rules for real estate transactions vary from one state to another, so working with a licensed real estate agent or attorney is highly recommended. A licensed agent can advise on regional and federal real estate laws throughout the process. It is common to use a licensed real estate agent when buying or selling property within the United States.
All real estate transactions must also include the buyer’s Individual Taxpayer Identification Number (ITIN) in order to close the transaction. To obtain an ITIN, the buyer must apply with the Internal Revenue Service (IRS). The ITIN may take five weeks or longer to receive, so plan accordingly. Once the ITIN is received and the transaction is in process, it is easy to transfer money from Israel to USA for the property purchase.
In 1975 the Israeli and American governments entered into a bilateral tax treaty to help citizens of both countries avoid double taxation if living and working in either country. Israeli citizens living and working in the US must file and pay taxes to the US government on earned income, but tax credits may be available with the Israeli government. When paying taxes, keep in mind that any large currency transfer from Israel to America must be reported to the Controller of Foreign Currency within Israel.
Before Israeli citizens can apply for a visa to study at an American institution, Israeli citizens must first apply for and be accepted to a US-based school or program. Once accepted, the student will receive the necessary documents from the school to apply for a student visa. When making an international funds transfer to pay for student fees, keep in mind that all transfers above a specific amount must be disclosed to the appropriate Israeli authorities.
Health insurance is the way most people pay for their healthcare in the US, and most American citizens who have health insurance receive it through their employer. It is advisable for Israeli citizens who do not receive health insurance through an American employer to purchase a travel insurance or short-term health insurance policy if they are planning on visiting or living in the US for any period of time. It is mandatory for everyone to have at least the minimum levels of health insurance, or risk paying a yearly tax.
Non-citizens may participate in the two publicly-funded health plans, Medicare and Medicaid, if their income is below the minimum threshold, have lived in the US for at least five years, and have contributed to Medicare/Social Security for at least ten years.
The United States-Israel Free Trade Agreement was established in 1985, representing the first FTA entered into by the US. Two-way trade of goods and services between the two countries amounted to US$47bn in 2019. Imports from Israel into the US totaled US$26.9bn in 2019, making Israel the United States’ 23rd largest imports supplier. The five largest import categories from Israel were precious metal and stones, pharmaceutical products, optical and medical instruments, electrical machinery, and machinery. Services imports from Israel accounted for over US$7.4bn in 2019, 0.4% less than 2018, but 69.9% more than 2009. Israeli foreign direct investment in the United States was US$14.6bn in 2019, an increase of 4.2% from the previous year.
The Israeli shekel takes its name from the ancient Biblical currency of the same name. The word ‘shekel’ originally referred to a unit of weight – roughly equivalent to an ounce in modern terms – which was used for trading purposes.
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