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Will an Israeli court require a foreign claimant to post security for costs?

Usually yes, and Israeli defendants ask for it as a matter of routine. Courts have long held that a claimant living outside Israel with no local assets can be ordered to deposit security (aravut) for the defendant's costs, because a costs award against them would be hard to enforce. Regulation 157 of the Civil Procedure Regulations 5779-2018 gives the court that discretion, and Section 353A of the Companies Law 5759-1999 applies a stricter default to limited companies. The order is not automatic, since courts weigh the claim's prospects and the claimant's means. Failing to post the sum on time normally ends the claim.

The rationale is symmetry. A defendant pulled into litigation is entitled to expect that a costs award in their favour will be worth something, and a claimant beyond the reach of Israeli enforcement undermines that. Courts therefore treat foreign residence combined with the absence of Israeli assets as the trigger, not foreign nationality on its own. A foreign national who owns property here stands in a very different position from one who owns nothing. The discretion is exercised against the apparent strength of the claim, the claimant's means, and whether an order would shut a meritorious claimant out of court. Where the claimant is a limited company, Section 353A of the Companies Law reverses the starting point.

Foreign creditors should budget for this from the outset rather than meet it as a surprise. The application usually arrives with the defence, the court fixes the sum against the expected costs of the case, and it is deposited with the court or provided as a bank guarantee. Reciprocity helps: a claimant from a country where an Israeli costs order is readily enforceable has a real argument for a reduced amount or none at all. Practical alternatives worth raising with counsel include suing through an Israeli entity that holds assets, or going straight to the Execution Office where the debt rests on a cheque or promissory note, which bypasses ordinary civil proceedings altogether. Our guide to filing a debt claim in an Israeli court sets out the wider process.

⚖ In Practice
  • Governing law: Regulation 157, Civil Procedure Regulations 5779-2018; Section 353A, Companies Law 5759-1999 for corporate claimants
  • Competent authority: the Magistrates or District Court hearing the claim, according to the amount at stake
  • Typical amount: set at the court's discretion against expected costs; commonly tens of thousands of shekels in a mid-size commercial claim
  • Form: a cash deposit with the court registry or a bank guarantee
  • Consequence of non-payment: the claim is struck out, usually with costs against the claimant
  • Reduces the risk: demonstrable Israeli assets, or reciprocity making an Israeli costs order enforceable where the claimant resides

From the full guide: Filing a Debt Claim in Israeli Court: Step-by-Step Guide

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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