Product Solutions: Israel

THE STM LIFE STAR BOND is a unit linked investment bond that offers significant tax planning and wealth structuring opportunities for individuals and companies resident in Israel.

The Star Bond provides the very attractive benefits of ongoing TAX DEFERRAL on investment growth while also offering the exceptional INVESTMENT FLEXIBILITY of a Gibraltar regulated life company.

If an investor chooses to invest in the bond, the investments will benefit from a tax deferral under Israel tax law on any gains, dividends, interest or other growth in the underlying portfolio (some investments may suffer deduction of a withholding tax at source).  This cumulative “Gross Roll-Up” effect can have a significantly positive impact on a growing investment portfolio.

The investor can also choose when to take money out of the bond and thereby control their tax point, as well as benefitting from preferred tax rates.  This means that lower tax may be possible and that the timing of its payment can be controlled, based on the circumstances of the investor at that time.  This can help customers with a range of needs including estate and retirement planning.

Policyholders can invest in a very wide range of allowable assets.  For example, equities and property can all be accommodated within the bond and the policyholder may have direct involvement in the selection of assets that the bond invests into.  STM Life always recommends the use of a professional investment adviser, but you may recommend one to us.

STM Life understands and blends European and Global knowledge with local market experience to provide highly personalised solutions to an expatriate and local client base.  Flexible and secure, thanks to Gibraltar’s Protected Cell Company legislation, our bespoke solutions allow policyholders to plan, organise and protect their wealth whilst retaining full control over their assets.  We are an EU product provider with expertise in providing tax efficient product structuring.  STM Life meets the capital and solvency rules laid down by the EU’s Third Life Insurance Directive and is licensed and subject to continuous regulation by the Gibraltar Financial Services Commission.  STM Life is not regulated or otherwise authorised by the Ministry of Finance in Israel.



If you live in Israel then you may wish to apply for a Star Bond as part of your financial structuring planning.  If you do, please feel free to download the Application Form and submit it to us.  It is important that you first read and understand the Key Features of the Star Bond, which you can download here in English .  Please note that we can only accept applications that have been completed in English.



References to legislation and taxation expressed on this website are based on STM Life's understanding of current law, which may change without notice.  The information contained herein is intended for general guidance only and is not a substitute for professional advice. No responsibility is accepted for any action taken or not taken on the basis of the information contained herein.  STM Life Assurance PCC Plc does not give financial or investment or tax advice. Any individual or company applying for an STM Star Bond does so of their own volition.