In brief
An Israeli company, or a foreign company whose owners are Israeli, can open a business bank account abroad, but the process is based on an in-depth "know your customer" review: the company's documents, identification of the controlling persons, an explanation of the activity and the source of funds. Many banks expect a real connection to the country and sometimes a physical meeting, and digital financial institutions offer an alternative with limitations. Information about the account is reported to the Israel Tax Authority under the CRS, so the account must fit into the Israeli reporting of the company and its owners, with the assistance of an Israeli accountant.
Key takeaways
- 1The bank checks three things: who the company is, who actually owns it (the controlling persons), and where the money comes from and where it goes.
- 2Foreign documents are usually required with an apostille and a certified translation; a missing or outdated document is a common cause of delay.
- 3A digital financial institution, such as Wise or Payoneer, holds an electronic money or payment services licence rather than a banking licence, and the protection of funds held there is different.
- 4Israel has implemented the CRS since 2019, so information about an account of an Israeli resident or of a company whose owners are Israeli may reach the Israel Tax Authority.
- 5An account of a foreign company that is actually operated from Israel may strengthen a claim that the company itself is an Israeli resident.
A bank account in the country where you operate is usually a basic requirement for doing business there: local customers prefer to pay by transfer to a local account, suppliers and employees expect to be paid from a local account, and in some countries a new company's share capital is deposited with a local bank. At the same time, banks around the world have become very cautious about opening accounts for foreign customers because of anti-money-laundering obligations.
This guide deals with two situations: an Israeli company opening an account abroad, and a foreign company (for example an SRL in Romania, a company in Cyprus or an LLC in the US) whose owners are Israeli. It explains what the bank asks for, how to prepare, and what the Israeli side involves. The accounting and tax aspects of the account are reviewed with an Israeli accountant.
Can an Israeli company open a business bank account abroad?
Yes, but the decision belongs to the bank. There is no right to a business account, and each bank sets its policy according to anti-money laundering obligations and its risk appetite. In the European Union, for example, the European Commission notes that regulated entities must carry out customer due diligence when entering into a business relationship: identifying the customer, monitoring transactions and reporting suspicious activity. The new European anti-money laundering legislative package was approved in 2024 and will mostly apply from 2027.
In practice, the more real the company's connection to the country, the better the chances: a registered local company, an office or employees, local customers or suppliers, and well-explained activity. An Israeli company with no presence in the country will find it harder than a local subsidiary.
Which documents does the bank ask for?
The list of documents varies from bank to bank and country to country, but the groups are constant. It is worth preparing all of them in advance, up to date, and in the language and with the authentication the bank requires.
| Group | Typical documents | Notes |
|---|---|---|
| Company documents | Certificate of incorporation, articles of association, a current company extract or certificate of good standing, list of directors and shareholders | For an Israeli company: an extract from the Registrar of Companies. An apostille and certified translation are usually required |
| Authority | A board resolution to open the account, appointing authorized signatories and the scope of authority | The wording must fit the articles and the bank's requirements |
| Controlling persons | A holding chart up to the individuals at the end, a beneficial ownership declaration, passports and proof of address of the controlling persons, directors and authorized signatories | In a chain of companies, documents are also needed for the intermediate companies |
| The activity | A description of the business, a website, contracts or orders, sample invoices, a list of main customers and suppliers and their countries | The bank wants to understand where the money will come from and where it will go |
| Source of funds | Financial statements, account statements, an explanation of the source of the deposited capital and of the source of wealth of the controlling persons | Especially important for a large initial capital deposit |
| Tax residence | A self-certification for CRS and FATCA purposes, the tax identification number of the company and of the controlling persons | Required at almost every bank that applies these standards |
| Activity forecast | Expected monthly volume, currencies, counterparty countries, types of transactions | Activity that deviates from the forecast may lead to inquiries and a freeze |
The bank compares the holding chart with the company extract, the activity description with the website and contracts, and the addresses with the proofs. A small mismatch, such as a shareholder not updated in the register or an old address, is enough to stop the process.
Can the account be opened remotely?
Sometimes. Some banks allow video identification and digital signature, and some require a physical meeting of the authorized signatory or the controlling person at a branch. Even when remote opening is possible, the bank may require documents certified by a notary, with an apostille, or signature before the consulate.
- Check in advance with the bank the list of documents, the authentication requirements and whether a physical visit is required.
- Update the company register so that it matches the actual position: owners, directors and address.
- Prepare a clear holding chart and a written description of the activity in the bank's language.
- Obtain the apostille and translations before submitting the application, not after.
- Prepare a documented explanation of the source of the initial capital.
- If a power of attorney is needed for local action, prepare it in a form the bank accepts.
For certain countries we have written focused guides: A bank account in Romania for a non-resident, A tax number and bank account in Greece and ITIN, EIN and a bank account in the US.
What is the difference between a bank and a digital financial institution?
A digital financial institution is a fintech company that holds a European licence to issue electronic money or provide payment services, not a banking licence. Well-known examples are Wise and Payoneer. Such an institution usually offers an account with an IBAN, quick online opening and cards. It suits mainly receiving payments and making routine payments, but it is not a bank. Some well-known fintech companies now also hold a banking licence in one of the countries, so check in the terms of use which entity holds the account and under which licence.
| Issue | Bank | Digital financial institution |
|---|---|---|
| Opening | Slower, sometimes with a meeting | Online, usually faster |
| Protection of funds | Bank deposits are usually covered by a local deposit guarantee scheme, up to a cap | The funds are not a bank deposit; protection is usually through safeguarding of client funds, under the applicable regulation |
| Credit, guarantees and letters of credit | Available, subject to underwriting | Usually limited or unavailable |
| Depositing capital when forming a company | Accepted in most countries | Not always accepted by the registrar of companies or the notary |
| Stability | A long-term account | Accounts may be blocked or closed more quickly when the system detects an anomaly |
Before choosing, read the terms of use: which countries and fields of activity the institution serves, what the transfer limits are, how a freeze is handled and what happens to the funds when an account is closed. We do not recommend any particular provider here.
What is the CRS and what does it mean for an account abroad?
The CRS is an OECD standard for the automatic exchange of information on financial accounts. A financial institution in a participating country identifies the account holder's tax residence, and reports accounts of residents of other countries to the local tax authority, which passes the information to the country of residence. For an account of an entity that is not active, the controlling persons are usually also reported.
According to the PwC tax summary (reviewed in June 2026), Israel has implemented the CRS since 2019, and financial institutions in Israel filed their first reports in 2019 for the years 2017 and 2018. With the US, a separate FATCA agreement applies, which entered into force on August 4, 2016. The practical meaning: assume that information about the account abroad will reach the Israel Tax Authority, and that it must be reported correctly from the outset.
What must be reported in Israel about the account?
The answer depends on who holds the account. There is no single form for all cases, so the actual reporting is determined with the accountant.
- Israeli company: the account abroad is part of the company's assets. The movements, income and exchange differences are recorded in the books and the financial statements, and reported in the company's annual return.
- Israeli-owned foreign company: the account belongs to the foreign company, but the Israeli shareholders report the holding in the company (for example on Form 150, an annex to the annual return). If the company is a controlled foreign company or a foreign professional company, there are additional obligations. See the guide to controlled foreign companies and foreign professional companies.
- Israeli-resident individual: income from the account, such as interest, is taxable in Israel and must be reported under the rules. The obligation to file an annual return depends on the type and amount of income.
- Returning funds to Israel: an Israeli bank receiving a transfer from abroad will ask about the source of funds. Orderly documents from the account abroad save time. See the guide to transfer delays and source of funds.
If all instructions for a foreign company's account are given from Israel, and the only authorized signatories are in Israel, this is one of the signs the Israel Tax Authority may examine on the question of where the company's control and management are exercised. Such an account is not improper, but the whole structure should be reviewed in advance.
Why do banks refuse an application to open an account?
Banks do not always explain a refusal. These are the common reasons worth checking in advance, because most of them can be resolved before applying:
- No understandable connection to the country: no customers, suppliers, employees or local activity.
- A complex holding structure, with intermediate companies in countries the bank classifies as high risk.
- An activity description that is too general, or a field of activity the bank does not serve.
- Documents that are missing, out of date or not authenticated as required.
- A partial explanation of the source of capital or source of wealth of the controlling persons.
- A controlling person who is a politically exposed person or connected to one, without full information.
- Gaps between the official register and what is presented to the bank.
What to check before starting?
- Whether the account should be in the name of the Israeli company or of a local subsidiary.
- What the activity's connection to the country is, and how to present it to the bank.
- Whether a bank or a digital financial institution suits the planned use.
- Which documents, authentications and translations are required, and the timetable for obtaining them.
- Who the authorized signatories will be and from which country they will act.
- How the account will fit into the books and the reporting in Israel, together with the accountant.
If it has not yet been decided in which country and under which structure to operate, see the comparison of 8 countries for forming a company and the guides to an Israeli company doing business in specific countries, for example Romania and Cyprus.
What we review and how we accompany it together with the accountant
Before approaching the bank, put the company's documents, the shareholder register and the holding chart in order, and make sure they match one another. We prepare the legal file for the bank: incorporation documents, resolutions, powers of attorney, apostille and translations, and a description of the holding structure, and coordinate with lawyers in the target country when required. The accounting and tax questions, including reporting in Israel on the account and on the company, are reviewed by your Israeli accountant, and we work with them so that the documents fit the reporting. On our own process see Opening a file and KYC review.
This article is general information as of November 2026, and is not legal advice, tax advice or a recommendation of any particular bank or provider. Banks' requirements change and are beyond our control, and there is no guarantee that an account will be opened. Reporting in Israel is determined with an Israeli accountant according to the facts of each case.
Frequently asked questions
How do you open a business bank account abroad for an Israeli company?
Approach a bank in the target country, find out the list of documents and submit a file including the company's documents, a board resolution, identification of the controlling persons and authorized signatories, a description of the activity and an explanation of the source of funds. Israeli documents are usually required with an apostille and a certified translation.
Can you open a bank account abroad without flying there?
At some banks yes, with video identification and digital signature, and at others a physical meeting is required. Digital financial institutions open online accounts relatively easily, but they are not banks.
Does the Israel Tax Authority know about a bank account abroad?
Assume that it does. Israel has implemented the CRS since 2019, and financial institutions in participating countries report accounts of Israeli residents, and in some cases also the controlling persons of companies. With the US, the FATCA agreement applies.
Why did the bank refuse to open an account for my company?
Common reasons are no connection to the country, a complex holding structure, an unclear activity description, missing or unauthenticated documents and a partial explanation of the source of funds. Banks are not required to give reasons for a refusal.
What is the difference between a bank account and an account with a company such as Wise or Payoneer?
Wise and Payoneer are electronic money institutions, not banks. At a bank, funds are deposits, usually covered by deposit insurance up to a limit, with access to credit and guarantees. At an electronic money institution, funds are not deposits, and they are usually protected by safeguarding (keeping client funds separate). Opening is faster, but the services are narrower.
What is the CRS declaration the bank asks for?
A form in which the company declares its tax residence and tax identification number, and sometimes also its controlling persons and their residence. The bank uses it to determine to which country to report the account.
Do I need to report in Israel a bank account of a foreign company I own?
The account belongs to the foreign company, but you report the holding in the company in the annual return, and in certain cases there are additional obligations under the controlled foreign company or foreign professional company rules. The exact reporting is determined with an Israeli accountant.
Read next · 10 min readPermanent Establishment and a Remote Employee Abroad: When an Israeli Company Is Taxable in the Employee's Country, and What About Payroll and Social SecurityAn employee working from home abroad may create a permanent establishment for an Israeli company. Fixed place, dependent agent, building site, OECD 2025 home office update, payroll.Read the guideSources
- PwC Worldwide Tax Summaries - Israel, Corporate, Other issues (FATCA, CRS) (reviewed 29.6.2026)
- European Commission - Anti-money laundering and countering the financing of terrorism at EU level
- PwC Worldwide Tax Summaries - Israel, Corporate residence (reviewed 29.6.2026)
- Income Tax Ordinance [New Version]: sections 1, 75B, 75B1, 131 (consolidated text, Wikisource, Hebrew)
- Israel Tax Authority - Form 150, Declaration of holding in a non-resident body of persons
