Tax lawyer Doron Levy highlighted that relocating from Israel to the United States can bring significant tax complications. One major issue is the potential for double taxation when selling property after the move.
According to Israeli law, an exit tax may be imposed on gains made while the individual was a resident of Israel. However, the U.S. does not recognize this law, leading to possible conflicts between the two tax systems. With no clear resolution in the treaty between the two countries, those relocating face uncertainty in managing their tax obligations.