General information, current as of 2026; not legal or tax advice. The links below go to official US government sources.
1. Social Security: You Can Still Collect It Here
US citizens can receive Social Security payments while living in Israel, which is not a restricted country. The US Embassy’s Federal Benefits Unit in Jerusalem handles retirement, survivors, and disability claims for residents of Israel.
- US Embassy Jerusalem, Social Security: il.usembassy.gov/social-security
- SSA Office of International Operations: ssa.gov/foreign
The trap nobody mentions: there is no US-Israel Social Security totalization agreement. If you are self-employed in Israel, you can be taxed for Social Security on both sides with no credit. Worth a conversation with a cross-border accountant. (Confirm Israel is absent from the official list: ssa.gov/international/agreements.)
2. US Taxes: You File Every Year, for Life
US citizens and green-card holders file a US return no matter where they live. Two filings surprise people:
- FBAR (FinCEN Form 114), if your foreign accounts total over $10,000 at any point in the year: fincen.gov
- Form 8938 (FATCA), with higher thresholds for those living abroad: irs.gov (FATCA)
- Behind on filing? The official catch-up path is the IRS Streamlined Foreign Offshore Procedures: irs.gov (streamlined)
- IRS overview for citizens abroad: irs.gov
3. Medicare: It Does Not Cover You in Israel
Medicare almost never pays for care outside the US. If you keep Part B, you pay premiums for coverage you cannot use here; if you drop it and later move back, you face late-enrollment penalties for life. Make this choice on purpose, not by default.
- Medicare coverage outside the US: medicare.gov/coverage/travel
4. The Part the Government Pages Never Mention
Social Security, taxes, and Medicare are the known worries. Here is the one almost no American family in Israel has handled: if you are incapacitated, or you die, what happens to your US assets, the IRA, the brokerage, the house back home?
- If you have a stroke and cannot sign, who can touch your US accounts? A US bank will not honor a foreign document, and your children cannot simply step in. Without the right US power of attorney, the answer is a US court, from 6,000 miles away.
- When you die, your US assets pass through US probate in the state where they sit, public, slow, and expensive, unless they are structured not to.
- If you or your spouse is not a US citizen, there is no estate-tax treaty between the US and Israel. The default exemption on US assets for a non-resident non-citizen is just $60,000, and the wrong setup can get the same money taxed on both sides. See how cross-border estate planning fixes this →
Three Questions to Sit With
- If your father had a stroke tomorrow, who could sign for his US accounts, without going to court?
- Do your parents have a US HIPAA form? Without it, a US doctor can legally refuse to talk to you.
- Who is your US person if something happens to you here?
If you do not have a clean answer to all three, that is a short conversation worth having.
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Book your free consultFrequently Asked Questions
Can I Collect US Social Security While Living in Israel?
Yes. Israel is not a restricted country, so US citizens can receive Social Security payments while living there. The US Embassy’s Federal Benefits Unit in Jerusalem handles claims. The trap nobody mentions: there is no US-Israel Social Security totalization agreement, so if you are self-employed in Israel you can be hit for Social Security tax on both sides with no credit. That one is worth a conversation with a cross-border accountant.
Do I Still Have to File US Taxes if I Live in Israel?
Yes. US citizens and green-card holders file a US return for life, wherever they live. Two filings catch people by surprise: the FBAR (if your foreign accounts total over $10,000 at any point in the year) and Form 8938 under FATCA. If you have fallen behind, the IRS Streamlined Foreign Offshore Procedures are the official catch-up path. This page links to the government sources for each.
Does Medicare Cover Me in Israel?
Almost never. Medicare generally does not pay for care outside the US. If you keep Part B you pay premiums for coverage you cannot use in Israel; if you drop it and later move back, you can face late-enrollment penalties for life. It is a real decision to make on purpose, not a default to drift into.
What Happens to My US Assets if I Die or Am Incapacitated in Israel?
This is the part the government sites never cover, and it is the one that bites hardest. If you cannot sign, a US bank will not honor a foreign power of attorney, so without the right US document your family may need a US court to reach your US accounts. At death, your US assets go through US probate in the state where they sit, unless structured otherwise. And if you or your spouse is not a US citizen, there is no US-Israel estate-tax treaty, so the default exemption on US assets can be as low as $60,000. These do not fix themselves.
Who Is My "US Person" if Something Happens to Me?
It is the question most people who made aliyah have never answered. If you are incapacitated, who can legally act on your US accounts? If you die, who handles your US assets? Without a US power of attorney, a US health-care directive with a HIPAA authorization, and US assets structured to avoid probate, the answer is usually a US court, from 6,000 miles away. Naming and empowering a US person now is the fix.
Updated on July 11, 2026. By Kevin D. Klagge, Esq., Fla. Bar No. 99502. Attorney Kevin Klagge represents families, businesses, and international clients in estate planning and international law, with a focus on Florida legal tools. He litigates estate and business issues in court. General information, current as of 2026; not legal or tax advice, and verify benefit specifics with SSA, the IRS, or your advisor. No attorney-client relationship is created by reading this, and please do not send confidential information until we have agreed to represent you. We provide US estate, tax, and elder-law planning for Americans in Israel and across the States, remotely from Miami.