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 substantial financial burden due to his required renunciation of US citizenship to serve as a Knesset member. Under Israeli Basic Law, Knesset members cannot hold dual citizenship, forcing 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. The tax is levied on unrealized gains and appreciation of assets accumulated during US residency.

Dobronski, who has lived in New York and California since 2000 and built much of his wealth in the US, is likely subject to this tax. Although his exact net worth is not publicly known, he has sold companies valued in the millions, including Hotbar, Smartshopper, and Crossrider. In a 2020 interview, Dobronski claimed to have investments worth around a billion dollars and returns significantly exceeding typical investment funds.

The potential exit tax could amount to millions of dollars, raising questions about whether Dobronski will ultimately accept a Knesset seat given the heavy financial cost. This dilemma is compounded by the current precarious position of the Likud party and its coalition bloc in public opinion polls. The situation highlights the complex personal and financial considerations faced by politicians with dual citizenship seeking to enter Israeli politics.