How Much Does an Accountant Charge for International Tax Services?

Who Is This Guide For?

If you are a self-employed professional or business owner working with other countries, or if you recently immigrated to Israel and need international tax guidance, your first question is likely: how much will this cost? The answer is not straightforward, because the price depends on many variables — from the tax issue itself, through reporting complexity, to the scope of ongoing work.

Most clients we see in this field fall into several categories: self-employed professionals who opened a business abroad and need to report foreign income to the Israeli Tax Authority; business owners with operations in two or more countries; new immigrants who transferred assets from abroad and have reporting obligations that are not always clear; and employees who received a job offer abroad and need advice on tax implications. Each of these categories requires a different type of service — and that is precisely what affects the price.

The purpose of this guide is to explain the key factors that determine the cost of international tax services, give you a clear picture of what you can expect, and help you understand when it is worthwhile to invest in professional guidance.

What is International Taxation and Who Does It Apply To?

International taxation is a field that addresses questions such as: Where are you obligated to pay tax on your income? How do you handle double taxation (when you owe taxes in two countries on the same income)? What are your reporting obligations abroad and in Israel? How are bilateral tax treaties (tax treaties) taken into account?

This topic is relevant to anyone who has any connection with another country. For example: a self-employed individual who opened a business in Portugal and reports to the Portuguese tax authority and also to Israel; an employee who moved to work in Germany but still owns an apartment in Israel; a company owner with a subsidiary abroad; or a new immigrant who transferred assets from abroad and needs to report foreign capital (FBAR).

Each of these situations leads to different questions, and each question requires unique expertise. This is precisely why international taxation services cost more than regular accounting services.

What Affects the Price of International Tax Services?

Type of advisory required. If you need a one-time report (for example, an FBAR report in your first year in Israel), the price will be completely different from a client who needs ongoing annual advisory. A one-time report can cost anywhere from a few thousand to tens of thousands, depending on the scope of assets and complexity. Ongoing advisory, on the other hand, is typically maintained at a more fixed monthly or annual cost.

Number of countries involved. If you only deal with the UK, it's simpler than if you have income from three different countries. Each additional country means additional reporting obligations, the possibility of double taxation that needs to be addressed, and different legal and tax knowledge. An accountant handling three countries must be familiar with the laws of each — and that costs money.

Complexity of business structure. A self-employed person with a foreign business is one thing. A private company with a foreign subsidiary, inter-company loans, and profit distribution is something entirely different. Each layer of complexity adds working hours and reporting requirements.

Scope of assets and income. If you're reporting annual income of $20,000, it won't cost as much as reporting $500,000. The reason is that the tax authority risk level is higher, and more checks and documentation are required. Additionally, when assets are large, there is often a need for active tax planning — not just reporting, but also strategy.

Specific reporting obligations. FBAR reporting (reporting on foreign accounts) is one thing; FATCA reporting (reporting on foreign assets of U.S. citizens) is another; and reporting on income from securities is yet something different. Each requires specialized knowledge and time.

Frequency of changes in circumstances. If your situation is stable (same income, same country, same business structure), the price can be more standard. But if something changes every year — you opened another business, closed a company, moved countries — each change requires an update and new advisory.

Price Ranges — What You Can Expect?

Let's talk plainly: there is no fixed price for international taxation services. However, there are different ranges depending on the type of service.

One-time reporting (FBAR, foreign asset declaration, initial reporting). If you require one-time reporting, you can expect costs ranging from several thousand to tens of thousands, depending on the scope of your assets and complexity. A freelancer who needs to report a simple foreign bank account will be at the lower end of the range. A business owner who needs to report a complex structure of foreign companies will be at the higher end.

Ongoing annual support. If you are a freelancer or licensed business operator with foreign-source income, annual support typically includes accounting services, preparation of annual reports, income tax reporting to the tax authorities, and international reporting if required. The cost depends on the scale of your activities — from a simple freelancer with a few foreign transactions, to a licensed business operator with substantial income. This typically ranges from several thousand per year.

Active tax planning and ongoing consultation. If you are looking not only for reporting, but also for strategy — how to handle double taxation, how to utilize bilateral tax treaties, how to structure your business to be tax-efficient — this is a different cost. Such a service typically comes with higher monthly or annual fees, as it requires ongoing work and deep expertise.

One point that is not always clear: higher upfront expenses (such as detailed FBAR reporting) can save you money in the long run. If you report correctly from the beginning, you avoid potential issues with the tax authorities in the future.

Real-World Examples — What Clients Actually Pay

Example 1: Self-employed individual who opened a business abroad. Ran is a self-employed person who opened a business in Portugal. He needs to maintain accounts in Portugal (for the tax authorities there) and also report his income to the Israeli tax authorities. In the first year, he requires a detailed report of all his income, a review of the bilateral tax agreement between Israel and Portugal, and an FBAR report if he holds a bank account abroad. The cost of assistance in the first year could be tens of thousands of shekels. In subsequent years, if the situation stabilizes, the cost will decrease, as much of the work has already been completed.

Example 2: New immigrant with assets abroad. Devorah immigrated to Israel from the United States. She transferred money from an American bank account to an Israeli account and still owns a property in the U.S. (a house she rents out). She must report the American account (FBAR), income from renting the house, and the asset itself (foreign capital declaration). Additionally, she must check whether she has tax obligations in the U.S. on this income. This is a complex situation requiring detailed reporting in two countries. The cost of assistance for such a case could be tens of thousands of shekels in the first year, and several thousand in subsequent years (ongoing support).

Example 3: Limited company with international operations. Alex is the owner of a limited company that exports products to Europe. He needs to maintain accounts in Israel (annual report, corporate tax), report foreign-source income, handle VAT abroad (in several European countries), and plan the company structure to be tax-efficient. This is a complex situation requiring ongoing support and consultation. The annual cost of assistance for such a company is typically in the range of tens of thousands of shekels, depending on the sales volume and complexity.

What is important to remember: in these examples, the cost is not merely an expense. It is an investment in accurate reporting, avoiding penalties, and tax planning that favors your situation.

How to Choose an Accountant for International Taxation?

When you are looking for an accountant for international taxation, it is not enough to simply look at the price. Here are the important criteria:

Experience in your specific field. You need an accountant who has experience with your country or countries. For example, if you work with the United Kingdom, you want an accountant who is familiar with the British tax system and the bilateral tax treaty between Israel and the United Kingdom. An accountant specializing in the United States will struggle with the specifics of a European system.

Knowledge of specific reporting obligations. If you need FBAR reporting, you want someone who knows exactly what needs to be reported, what the penalties for non-reporting are, and how to handle complex situations. If you own a company, you want someone who is familiar with international financial statements and complex tax reports.

Availability and ongoing communication. International taxation often requires questions throughout the year, not just during tax filing preparation. You want an accountant who is available for questions, who explains things in a way you understand, and who does not make you feel like you are bothering them.

Transparent fees. Before you start, request a detailed price quote. What exactly is included in the service? Is it annual reporting only, or also consultation throughout the year? Are there additional costs if something changes? It is better to know in advance.

Common Mistakes and How to Avoid Them

• Thinking that international taxation is "just a bit more than regular accounting." It's not. It's an entirely different field with its own laws, bilateral agreements, and unique reporting obligations. If you try to save money by using an accountant who doesn't specialize in this area, you risk running into tax authority issues that will cost you far more.
• Deferring complex reporting to next year. If you're new to Israel or have a new international structure, don't wait. Every year you don't report correctly, you accumulate liabilities and risk. Early reporting, even if it costs more initially, will save you headaches in the future.
• Assuming a bilateral tax treaty automatically protects you from double taxation. Bilateral tax treaties exist, but you need to know how to use them. If you don't report correctly, you can't use them to avoid double taxation. This requires knowledge and consultation.
• Ignoring reporting obligations when income is low. If you think "it's just a little money" or "no one will check," you're mistaken. The Israeli tax authority is increasingly focused on international reporting, and penalties for non-reporting can be significant.
• Choosing an accountant only because they're cheap. In this field, a low price often means the accountant isn't dedicated to the area or won't dedicate enough time to your case. This can lead to costly mistakes.

When Should You Contact an Accountant for International Taxation?

Right when you're starting. If you're planning to open a business abroad, you're about to move to Israel, or your company is considering international expansion — that's the time to speak with an accountant. Early reporting and consultation can save you many problems.

When something changes. If you closed a business abroad, transferred assets, or received a job offer overseas — any such change requires a review of tax implications.

When you're concerned about reporting. If you're unsure whether you've reported correctly in previous years, or you don't know what you need to report — that's the time to get advice. Early consultation can help you fix issues before they become major problems.

When complexity increases. If you started with a simple business abroad, but now you have two countries, or you're thinking about opening a company in addition to your business — that's the time to re-plan with an expert.