How Much Cash Can You Keep at Home?

The Tax Authority is formulating a plan according to which the possession of more than NIS 200,000 in cash will be banned - in case of suspicion, the authority will be able to obtain a search warrant.

For the first time since the establishment of the State, citizens in Israel will be prohibited from holding large sums of money in cash at home, and if they hold smaller sums, their owners will have to declare it to the Tax Authority and explain where the money came from. These are the main points of a new plan being formulated as part of the fight against illegal money laundering. The rule will cover both shekels and foreign currency.

Stashes of cash in excess of this amount will be confiscated, or a high fine will be imposed on their owners, and the owner will be prosecuted and charged with tax evasion.

However, the plan includes another section, regarding much smaller amounts. In fact, in the future people will only be allowed to keep cash up to the sum of NIS 50,000 without any reporting. Beyond this amount and up to NIS 200,000, although it will be permitted to hold the money in cash, the owner will be required to notify the Tax Authority that they have cash at home or in the office or anywhere other than a bank, and explain the source of the money. Failure to report will constitute a criminal offense. The program is currently being promoted by the Special Committee for the War on Black Capital, headed by the director general of the Ministry of Finance, Ram Blinkov.

In summary:

Up to 50k Nis - Can be kept freely at home

50k to 200K Nis - Can be kept at home but must be reported where the money came from

Over 200K Nis - Not allowed, and can lead to prosecution

Bear in mind that this is just a proposal at this stage, we will keep you informed if it comes into law. So if you have a huge sum of money stored under your mattress you may want to think about putting it in the bank now.

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©ShemeshOnline
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