U.S Tax advantages and disadvantages

As American with dual citizenship living in Israel we are exposed to the advantages and disadvantages of the tax rate differences between the United States and Israel on different types of income.

On the one hand, as American citizens holding a Social Security Number, a vast world of investments is available to us in the United States and we are able to use the tax differences between the countries to our advantage, earning more on every investment we make.

On the other hand, we need to be very cautious of situations where double taxation may occur on income earned in Israel.

Please note: the tax treaty between the United States and Israel determines that in cases where the tax rate in Israel for a certain type of income is lower than the tax calculated on your tax return for that type of income- you must pay the difference.

Our goal is to supply the tools that will allow you to make an informed decision of where it is more beneficial for you to invest, depending on the specific income type, what you should “beware of”, and how to preplan you taxes in order to avoid double taxation