Do you have income, assets, or bank accounts that have not been reported? In such cases, you may be exposed to financial penalties, sanctions, and even criminal proceedings. The voluntary disclosure procedure allows you to settle your status with the Israeli Tax Authority, pay the required tax, and enjoy full immunity from criminal proceedings. This is a one-time opportunity that enables you to act proactively before the information is revealed to the authorities through advanced technological means or international cooperation. Our firm specializes in discreet, professional, and comprehensive guidance throughout the voluntary disclosure process, providing our clients with a tailored and secure solution.
The voluntary disclosure procedure is a key legal tool for individuals who have not previously reported income, assets, or bank accounts and wish to settle their affairs with the Tax Authority. The process enables taxpayers to pay the applicable tax, eliminate criminal risks, and establish a transparent and secure financial foundation for the future. Our firm provides personal and professional support at every stage of the process, maintaining full confidentiality and leveraging proven experience to achieve the best possible results.
In August 2025, the Israeli Tax Authority issued a new temporary directive, allowing taxpayers who have not previously reported their income or assets to regularize their status until August 31, 2026. The process is conducted exclusively online through a designated form on the Tax Authority’s website and enables taxpayers to pay the full tax due (plus interest and indexation) and receive immunity from criminal proceedings for the tax offenses included in the application. Immunity is conditional upon full, honest, and good-faith disclosure, as well as full cooperation with the Tax Authority. This is a one-time opportunity to start fresh with the authorities – before the information is exposed through advanced technological means or international cooperation.
For more information on voluntary disclosure, read the article “Voluntary Disclosure 2025 – Everything Relevant.”
Voluntary Disclosure and Digital Assets (Crypto)
The field of digital assets – cryptocurrencies and other digital holdings – has become a significant investment avenue for many Israelis in recent years. However, many investors are unaware of their reporting and tax obligations regarding profits from such activity.
The new voluntary disclosure procedure specifically addresses digital assets. It enables crypto investors to settle their tax liabilities, pay the required tax, and avoid criminal proceedings – before the information is revealed to the Tax Authority through regulated exchanges or advanced blockchain transaction-tracking technologies.
Crypto investors who have not reported their profits face a dual risk: on the one hand, advanced technologies allow tax authorities to track blockchain transactions; on the other hand, the need to convert digital assets into fiat currency through regulated exchanges exposes investors to source-of-funds scrutiny.
Our firm specializes in assisting crypto investors with voluntary disclosure, taking into account the unique complexities of these assets. Thanks to our extensive experience, we provide clients with a comprehensive solution – both from a tax and legal perspective – ensuring the process is carried out optimally, quickly, and securely. Contact us for an initial consultation.
Voluntary Disclosure – Non-Reporting of Rental Income Abroad
Failure to report rental income is one of the most central and sensitive issues in the tax system, given the scope of the phenomenon and the advanced tools used by the Tax Authority to detect unreported income. Many property owners assume that moderate rental income or income from a single property does not require reporting, but in practice, all rental income is subject to reporting obligations, except in limited cases where statutory exemptions apply.
In this reality, choosing not to report rental income carries significant exposure, potentially leading to criminal proceedings, heavy fines, and damage to personal and business reputation.
The voluntary disclosure procedure allows property owners in Israel and abroad to proactively regularize their reporting, pay the tax liability plus interest and indexation, and enjoy immunity from criminal proceedings. Beyond the legal aspect, regularization enables transparency with the banking system and authorities, removes legal and financial uncertainty, and establishes a stable foundation for future asset management. Under the new temporary directive, applications may be submitted online until August 31, 2026, either through amended returns or as part of an assessment procedure – provided that all conditions are met. Our firm supports private property owners and investors in voluntary disclosure procedures, offering tailored advice to achieve the best outcome.
For more information on this topic, read the full article: “Voluntary Disclosure In Israel – Resolving Unreported Rental Income.”
Voluntary Disclosure and Reporting of Foreign Bank Accounts
Many Israelis hold bank accounts in various countries worldwide. These accounts typically generate diverse financial income – such as capital gains, interest, and dividends – which, under Israeli law, must be reported and taxed in Israel, as long as the account holder is considered an Israeli resident.
In most cases, foreign bank accounts do not apply withholding tax at source, creating a situation where no tax is paid in Israel. This may occur even when the account holder did not intend to conceal income, but legally, failure to report and pay tax constitutes a criminal offense. To avoid criminal proceedings and ensure the lawful transfer or use of funds in the banking system, reporting to the Tax Authority is required. One of the main ways to resolve this issue is through the voluntary disclosure procedure.
In today’s era of financial transparency and international information exchange agreements (CRS, FATCA), the Israeli Tax Authority routinely and automatically receives detailed information about Israelis’ financial accounts worldwide, including balances, income, and profits. This means that taxpayers who have not yet reported their foreign accounts face a real risk of investigations, fines, and even criminal proceedings. The voluntary disclosure procedure allows taxpayers to initiate reporting, settle unpaid taxes, and thereby enjoy protection from criminal proceedings. Furthermore, the banking system increasingly requires accountant or attorney certifications regarding the source of funds and tax compliance as a condition for transferring funds, opening new accounts, or making investments. Thus, voluntary disclosure is not only a legal tool but also a practical necessity for proper financial management.
For more information on this topic, read the article “Voluntary Disclosure In Israel – Foreign Bank Accounts.”
Voluntary Disclosure in the United States
Our U.S. tax department handles the regularization of reports to the Internal Revenue Service (IRS) regarding income and assets in Israel and worldwide that were not reported to the United States. We assist U.S. Persons (citizens, residents, and green card holders) in voluntary disclosure procedures with the IRS, including FBAR (Foreign Bank Account Report) filings and annual tax returns (Form 1040).
The reporting obligation also applies to foreign bank accounts, investments, financial assets, and digital assets. Failure to comply with reporting requirements may result in significant financial penalties and even criminal proceedings.
The U.S. voluntary disclosure procedure enables taxpayers to regularize their reporting, pay the required tax, and avoid criminal sanctions. The process is conducted in accordance with IRS guidelines and in consideration of FATCA agreements, which require financial institutions worldwide to transfer information about accounts held by U.S. citizens.
Our firm specializes in assisting U.S. taxpayers with voluntary disclosure, including analyzing tax liabilities in both the U.S. and Israel, coordinating tax obligations between the two countries, and preparing all necessary reports to ensure full compliance with the law. Thanks to our extensive knowledge and practical experience, we provide clients with close, discreet, and professional support – enabling them to settle their status with the tax authorities confidently and with peace of mind.
Why Choose Us?
Our firm offers extensive and proven experience in assisting dozens of clients with voluntary disclosure procedures in Israel and worldwide, alongside unique expertise in complex areas such as digital asset taxation, foreign real estate, and diverse financial assets. We are committed to full confidentiality, personalized service tailored to each client’s unique needs, and a combination of legal expertise and tax professionalism – ensuring a comprehensive, secure, and reliable solution.
The voluntary disclosure procedure is a unique opportunity to settle your status with the Tax Authority before the information is revealed through other means. A proactive approach enables you to enjoy protection from criminal risks, settle unpaid taxes, and operate transparently with the authorities. We invite you to contact us today for discreet and professional advice and to benefit from the personal guidance of our expert team, who will help you open a new chapter with the authorities – confidently, peacefully, and in the best way for you.
Contact Us – For an initial and discreet consultation regarding voluntary disclosure and income regularization, reach out to us, and we will be happy to assist you personally and professionally.
Q&A
What is the Voluntary Disclosure Procedure?
The Voluntary Disclosure Procedure is a process that allows taxpayers who have not previously reported income, assets, or bank accounts to regularize their status with the Tax Authority, pay the required taxes, and receive immunity from criminal proceedings for the tax offenses included in the application.
Who can submit a Voluntary Disclosure application?
The procedure is suitable for anyone who has taxable income that was not reported and on which tax was not paid in Israel, whether the income originated domestically or abroad. The procedure is also relevant for those who have low income levels.
Until when can applications be submitted under the new temporary provision?
Applications can be submitted until August 31, 2026, through a dedicated online form on the Tax Authority’s website.
Does the procedure also apply to digital assets (crypto)?
Yes. The new procedure explicitly addresses digital assets, allowing investors to settle their tax liabilities and enjoy criminal immunity.
How long does the Voluntary Disclosure procedure take?
The processing time varies depending on the complexity of the case. Typically, the procedure takes several months, but criminal immunity applies from the moment the application is approved by the Tax Authority’s Investigation Department.
Can the procedure be used more than once?
No, the procedure can only be used once.
What happens after the Tax Authority approves the procedure?
The case is referred to the relevant tax assessor, and tax assessment discussions begin. These discussions culminate in a tax assessment agreement with the Tax Authority, after which the tax liability resulting from that agreement must be paid. After signing the assessment agreement and paying the tax, the taxpayer is entitled to criminal immunity.
What income must be reported to the Tax Authority?
All unreported income from Israel and abroad on which tax was not paid, such as income derived from foreign inheritance, realization and conversion of cryptocurrency, foreign bank accounts, rental income from abroad, foreign pensions, sales of assets abroad, and more.
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