Crypto voluntary disclosure became a real thing in Israel in 2025. For the first time, the Israel Tax Authority published a procedure that explicitly covered digital assets and gave it a clear deadline. That window closed on 31 August 2026. If you held bitcoin or other coins, sold or swapped at a profit and never reported it, you now face a different, and less comfortable, situation.
This page is only about the procedure and what follows it. The general rules on crypto tax, rates and worked examples are in our guide to crypto tax in Israel. Everything here is general information based on professional and press sources as of October 2026. It is not legal or tax advice.
What the voluntary disclosure procedure was
The procedure was published on 25 August 2025 and ran until 31 August 2026. Law-firm summaries describe it as the first to address digital assets explicitly. The point of any voluntary-disclosure procedure is to let people who did not report put their affairs in order and pay the tax, under the conditions the procedure sets, including protection from criminal proceedings for those who meet them.
Two things set this one apart from earlier rounds. First, there was no anonymous track: you could not make an initial no-names approach to test the water. Second, applicants had to disclose their public wallet addresses and balances. For the Tax Authority that is a key to the whole on-chain history, not just a snapshot of one day.
Alongside the main route ran a green track for small cases: crypto gains of up to ₪500,000 over the disclosure period, and holdings of up to ₪1.5 million on 31 December 2024. It was designed to shorten the process for people with modest amounts.
- Dec 2023Temporary procedure: pay tax from a foreign exchange account
The Tax Authority lets people pay tax on crypto gains straight from an account abroad, for those whose bank will not take the money.
- Nov 2024State Comptroller report and CARF pledge
The Comptroller estimates ₪2–3 billion in potential uncollected tax. On 20 November the Finance Minister commits Israel to CARF.
- 25 Aug 2025Voluntary-disclosure procedure published
Covers digital assets for the first time, with no anonymous track.
- Jun 2026Weak interim numbers
289 applications in total, 58 of them involving crypto.
- 31 Aug 2026The window closes
An extension or successor procedure could not be confirmed in our sources.
- 2027First CARF exchanges
Data on Israeli residents’ foreign crypto accounts expected to reach the Tax Authority.
How many people actually applied
According to figures published by Globes on 3 June 2026, uptake was weak. By early June there had been 289 applications in total, disclosing ₪676.5 million of capital and bringing in ₪40.9 million of tax. Only 58 were crypto applications, disclosing ₪145.8 million. The expectation had been something in the order of ₪2–3 billion.
That gap lines up with the State Comptroller’s November 2024 estimate of ₪2–3 billion in potential uncollected tax on digital currency. Why did so few come forward? Plausible reasons include the lack of anonymity, reluctance to reveal wallets, difficulty reconstructing years of trades, and perhaps a bet that the Tax Authority would never get round to them. That bet looks weaker every year, as explained below.
One common reason people end up "under the radar": they swapped coins again and again without touching shekels, not realising that each swap is a taxable event. When a big sale finally comes, there are dozens of unreported events behind it.
That is exactly where the bank comes in. When you try to bring a large sum home from a foreign exchange, the Bank of Israel’s Directive 411 requires a source-of-funds check above roughly ₪100,000 a year, and proof that tax was reported and paid is one of the documents banks ask for.
What happens now that the window has closed
As of October 2026 we found no official announcement of an extension or of a replacement procedure. None had been announced by June 2026, and what has happened since could not be confirmed in the sources we checked. That does not mean nothing is coming; it means you should not assume it is.
In practice, anyone who did not apply in time is now in the position of any taxpayer who failed to report: the duty to report and pay still exists, but the special arrangement built for voluntary disclosure is not necessarily available. The difference between coming forward with a late filing on your own initiative and waiting for the Tax Authority to contact you first can be significant, and that is precisely what to examine with a professional.
Inside the procedure
- A dedicated route that explicitly covered crypto
- A simplified green track for small amounts
- Known conditions up front, including the procedure’s protections
- Disclosure of wallets and balances, no anonymity
After the window closed
- Extension or new procedure: not confirmed
- Amended or late returns, with professional help
- Procedure protections do not apply automatically
- CARF from 2027 makes it likelier the Authority finds you first
Who this actually affects
Not everyone holding crypto needs to think about voluntary disclosure. If you bought bitcoin and never sold or swapped it, you have not created a taxable event, even if it is worth ten times what you paid. Tax will be due when you sell, and if you report it properly then, there is no "past" to clean up. The question only becomes live when there are unreported sales, swaps or crypto payments behind you.
A few profiles come up again and again. Early buyers who sold part of their holdings in a bull year and did not report because "the money stayed on the exchange". Active traders who swapped coins dozens or hundreds of times, usually through USDT, without realising each swap counts. People paid for work in crypto, such as a freelancer with clients abroad. And new immigrants who arrived with wallets and foreign exchange accounts.
What they share is that the problem usually surfaces at one moment: when they try to move a meaningful sum into an Israeli bank, buy a flat or take a mortgage. The bank asks where the money came from, and proof of tax reported and paid is one of the documents it wants. Arriving at that moment without an answer means sorting out the past under time pressure, exactly when it is least convenient.
So even if you are not planning to sell soon, it is worth knowing where you stand today: gather your statements, check whether there were taxable events in earlier years, and keep the records in one place. If it turns out you owe nothing, you have bought peace of mind. If you do, you can deal with it on your own timetable.
Your options now
There is no single recipe. But there is a sensible order of steps in almost every case, before you decide anything:
- Work out whether you owe anything at all
Holding alone is not a taxable event. If you only bought and held, there may be nothing to report. If you sold, swapped coin for coin, or paid with crypto, there probably is.
- Rebuild your history
Download trade reports from every exchange, including ones you no longer use, and list every wallet address. Without this you cannot calculate a gain or defend yourself against an assessment.
- See a professional before you file anything
A CPA or tax lawyer who knows crypto will check whether any procedure is currently open, what your risk is and how to approach the Authority. Do not file amended returns alone when meaningful sums are involved.
- Amend and pay
Depending on that advice: amend past returns or file the ones you never filed, and pay the tax. If your bank will not accept the funds, a procedure has existed since December 2023 for paying directly from a foreign exchange account.
- Set up for the future
From here on, keep full records and every statement. If you plan to bring money home, read our guide to Israeli banks before the transfer.
The hard decision is not whether to report but how and when. If you wait for the Tax Authority to contact you, you give up control of the timing and the framing.
A scenario: a couple in Rishon LeZion bought on an international exchange in 2020, moved into a stablecoin in 2022 and want to buy a flat in 2027. For the bank to accept the money they will need to show the tax was paid, so regularising is coming either way.
CARF and 2027: why time is not on your side
On 20 November 2024 Israel’s Finance Minister committed the country to the OECD’s Crypto-Asset Reporting Framework (CARF), a system for automatic exchange of information on crypto assets. The first exchanges are expected in 2027. Once they start, exchanges in participating countries will report Israeli-resident customers to their own tax authorities, and that data will flow to the Israel Tax Authority. Domestic legislation that would make Israeli providers report too had not been enacted, as far as we could find.
Separately, Amendment 272 to the Income Tax Ordinance (2024) removed reporting exemptions that new immigrants used to enjoy. If you made aliyah assuming you had no duty to report foreign assets, check that again. On any tax exemptions for olim, take advice rather than relying on what used to be true.
The risks worth knowing
If you do not report, you are exposed to a Tax Authority assessment on the gains, with linkage differentials, interest and fines on top. In serious cases, failing to report can also lead to criminal proceedings. That is exactly why the protections of a voluntary-disclosure procedure were valuable, and why their absence now is a reason to move carefully and with professional support.
There is a practical, everyday risk too: unreported money is very hard to bring into the banking system. Banks ask for a source-of-funds declaration, transaction history, sometimes an expert opinion, and proof of tax paid. For the broader regulatory picture, see is crypto legal in Israel.
Frequently asked questions
What was Israel’s crypto voluntary disclosure procedure?
A procedure published by the Israel Tax Authority on 25 August 2025 and valid until 31 August 2026. It was the first to cover digital assets explicitly. It let people report previously undeclared income and capital and pay the tax, with no anonymous track: applicants had to reveal their public wallet addresses and balances.
Was the procedure extended after 31 August 2026?
As of October 2026 we found no announcement of an extension or a successor procedure. No extension had been announced by June 2026, and what happened after the window closed could not be confirmed in the sources we checked. Check the Tax Authority site or with a professional representative before assuming the door is either shut or open.
I missed the window. What can I do now?
Speak to a CPA or tax lawyer, gather your full trade and wallet history, and look with them at amending past returns or filing missing ones and paying the tax. The special protections of a voluntary-disclosure procedure do not automatically apply to an ordinary late filing, so have a professional assess the risk before anything is submitted.
What was the green track?
A simplified track for small cases: crypto gains of up to ₪500,000 over the disclosure period, and holdings of up to ₪1.5 million on 31 December 2024, according to law-firm summaries. Like the main track, it was only available within the procedure’s window, which closed on 31 August 2026.
How does CARF relate to voluntary disclosure?
Israel committed in November 2024 to the OECD’s Crypto-Asset Reporting Framework, with the first automatic exchanges of crypto-account data expected in 2027. That makes it more likely the Tax Authority will find an unreported foreign account on its own, so the decision to regularise becomes more urgent, not less.
Sources
- Israel Tax Authority · checked October 2026
- State Comptroller — taxation of digital currency (2024) · report of November 2024
- Globes — voluntary disclosure figures · 3 June 2026
- Gornitzky — Voluntary disclosure 2025: crypto included, anonymity gone · client update
From now on, with full records
A platform with downloadable trade history avoids most of the problems that pushed people towards voluntary disclosure.
It holds no Israeli CMISA licence, and neither does any other international exchange in this guide.