One of the most common questions from Americans considering Aliyah is whether they’ll have to give up their US citizenship. The short answer is no — and understanding exactly how US-Israel dual citizenship works is one of the most important things you can do before making the move.
Does the United States Allow Dual Citizenship with Israel?
Yes. The United States does not formally recognise dual citizenship as policy, but it does not prohibit it. Americans who become Israeli citizens through Aliyah do not lose their US citizenship — provided they did not intend to relinquish it. Thousands of Americans hold US-Israel dual citizenship without any legal issue from either government.
US citizenship can only be lost through a formal, voluntary act of renunciation. Simply acquiring Israeli citizenship does not trigger this. Since the vast majority of Americans making Aliyah have no intention of giving up their US passport, their citizenship remains intact.
Does Israel Allow Dual Citizenship with the US?
Yes. Israeli law explicitly permits citizens to hold additional citizenships. When you make Aliyah under the Law of Return, you receive Israeli citizenship automatically — and nothing requires you to renounce your US passport. Your American passport remains valid and can be renewed through the US Embassy in Tel Aviv.
How It Works in Practice
When you land on your Aliyah flight, Ministry of Interior officials process your citizenship at the airport. You receive your teudat zehut (Israeli ID card) on the spot. No naturalisation waiting period, no language test, no civics exam. From that moment you hold both citizenships simultaneously.
Use your Israeli passport to enter and exit Israel. Use your US passport to enter and exit the United States. For third-country travel, use whichever gives you better visa access — the US passport generally offers broader visa-free entry globally.
The Critical Issue: US Tax Obligations Follow You
The US taxes its citizens on worldwide income regardless of where they live — one of the very few countries that does this. As a dual citizen living in Israel, you must file US tax returns every year and may owe US tax on income earned in Israel.
In practice, most Americans in Israel pay little or no US tax, because three mechanisms reduce or eliminate double taxation:
The Foreign Earned Income Exclusion (FEIE) lets you exclude approximately $130,000 USD of foreign-earned income from US tax (2026 figure, adjusted annually). For most Olim earning Israeli salaries, this eliminates US tax liability on Israeli employment income entirely.
The Foreign Tax Credit (FTC) lets you credit Israeli taxes paid against your US tax liability. Since Israeli income tax rates are generally comparable to or higher than US rates, this frequently reduces US tax owed to zero.
The US-Israel Tax Treaty provides additional protections for pension income, government pay, and investment income.
The complexity arises from the interaction between US worldwide taxation and the Israeli Oleh 10-year tax exemption on foreign-sourced income. If your foreign income is Israeli-tax-exempt under your Oleh benefits but still potentially US-taxable, the Foreign Tax Credit doesn’t help — because no Israeli tax was paid to credit. This is exactly the scenario where a US-Israel cross-border tax accountant is essential, before you move.
FBAR and FATCA: Reporting Foreign Accounts
US citizens living in Israel must report foreign financial accounts under FBAR (FinCEN Form 114) if the aggregate value of foreign accounts exceeds $10,000 at any point during the year. Additional FATCA reporting applies on Form 8938 above higher thresholds. Your Israeli bank accounts, keren pensia (pension fund), and investment accounts all count. Penalties for non-compliance are severe. This is not optional.
Military Service
Israel has mandatory military service. The practical impact depends on your age when you make Aliyah:
- Before age 18: generally subject to regular mandatory service
- Ages 18–26 approximately: may require a shortened service period
- After approximately age 26–28: typically exempt from active service; reserve duty may still apply
The IDF Recruitment Office (Lishkat HaGiyus) assesses each case individually. Serving in the IDF does not affect your US citizenship.
Voting Rights
You can vote in both countries. US citizens abroad vote absentee in federal and usually state elections through the Federal Voting Assistance Program (FVAP), based on their last US state of residence. For Israeli elections, you must be physically present in Israel on election day — Israel does not offer absentee voting for citizens abroad.
Can You Lose Either Citizenship?
US citizenship can only be lost through a formal voluntary renunciation at a US Embassy or Consulate. Living in Israel, holding an Israeli passport, and voting in Israeli elections do not cause loss of US citizenship.
Israeli citizenship can theoretically be revoked but in practice is not for ordinary dual citizens living abroad.
Frequently Asked Questions
Get the Right Advice Before You Move
The citizenship itself is automatic and straightforward. The complexity is in the tax implications — especially the interplay between US worldwide taxation and your Oleh tax exemption. Getting advice from a US-Israel cross-border tax accountant before your Aliyah date is one of the most valuable things you can do. Olim Paveway can connect you with the right professionals. Get in touch to find out more.