Tech Entrepreneur Oren Dobronski Faces Multi-Million Dollar US Exit Tax If Elected to Israeli Knesset

Oren Dobronski, a high-tech entrepreneur and former participant on the Israeli TV show "The Sharks," may have to pay a substantial "exit tax" to the US tax authorities if he is elected to the Israeli Knesset and chooses to renounce his American citizenship to be sworn in. US tax law requires citizens who relinquish their citizenship to pay an exit tax calculated as if they sold all their assets at the time of renunciation, including unrealized gains. Having lived and built companies in the US since 2000, Dobronski’s accumulated wealth could trigger a tax bill estimated in the millions of dollars.

Dobronski was recently placed at number 11 on the Likud party list, ahead of many senior party members, with a mandate to advance artificial intelligence initiatives in Israel. This appointment came despite competition from Deputy Minister Almog Cohen of Otzma Yehudit, who also sought a reserved spot for AI leadership. Likud described Dobronski as a successful businessman, a founder of Israeli high-tech, and a right-wing figure who will lead AI development across various sectors including education, healthcare, and the economy.

Politically, Dobronski has taken strong stances during the recent conflict, advocating for the complete destruction of Hamas and supporting controversial measures such as the "transfer" plan for Gaza residents and Israeli military operations in Rafah. In June, he publicly criticized former US President Donald Trump on social media for excluding Israel from Iran negotiations, using harsh language before issuing a public apology acknowledging Trump as a great friend of Israel.

The question remains whether Dobronski will proceed with renouncing his US citizenship and paying the exit tax if elected, especially if Prime Minister Benjamin Netanyahu fails to form a government and Dobronski serves in opposition. As of now, neither Dobronski nor Likud have commented further on the matter.