Netanyahu’s Top Likud Candidate Faces Multi-Million Dollar Exit Tax Over US Citizenship Renunciation

Oren Dobronski, the first reserved candidate announced by Benjamin Netanyahu for the Likud party list, may face a hefty financial penalty due to his required renunciation of US citizenship to serve in the Israeli Knesset. Under Israeli Basic Law, Knesset members cannot hold dual citizenship, compelling Dobronski to give up his American citizenship. This triggers the US expatriation tax, which applies to citizens with a net worth exceeding $2 million and annual income over $171,000, taxing unrealized gains on assets accrued while residing in the US.

Dobronski, who has lived in New York and California since 2000 and built much of his wealth there, is estimated to owe millions in exit tax. His portfolio includes stakes in companies valued at millions, such as Hotbar, Smartshopper, and Crossrider. In a 2020 interview, Dobronski claimed his investments had yielded returns ten times his initial capital, with assets worth around a billion shekels.

The substantial tax burden raises questions about whether Dobronski will ultimately accept a Knesset seat, especially given the current precarious position of Likud and its coalition bloc in polls. The financial implications of the expatriation tax could influence his political decisions moving forward.