Likely Facing Multi-Million Dollar Exit Tax, Oren Dobronski Faces Knesset Dilemma

Oren Dobronski, the newly announced Likud candidate and Netanyahu's first confirmed pick, is expected to face a significant financial hurdle if elected to the Knesset. Dobronski, who has lived in New York since 2000 and later in California, accumulated most of his wealth in the United States. Under Israeli Basic Law: The Knesset, members cannot hold dual citizenship, meaning Dobronski must renounce his American citizenship if elected. According to US immigration law, renouncing citizenship triggers an "exit tax" on unrealized gains, taxing the increase in value of assets held while a US citizen. This tax applies to those with a net worth exceeding $2 million and annual income over $171,000. Although Dobronski's exact net worth is unclear, he has sold companies worth millions, including Hotbar and Smartshopper. In a 2020 interview, he claimed his ventures were worth around a billion dollars and that his investment returns were exceptionally high. Consequently, Dobronski could owe millions in exit taxes. The key question now is whether this substantial financial penalty will deter him from taking a Knesset seat, especially given the precarious position of Likud and the coalition bloc in current polls.