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Jerusalem Municipality freezes Patriarchate of Jerusalem bank accounts over tax dispute

Aug 14, 2025 | 18:37
in FrontPage, Patriarchate of Jerusalem
Patriarchate of Jerusalem: Urgent appeal for peace amid ongoing war

According to timesofisrael.com, the Jerusalem Municipality has frozen all bank accounts belonging to the Greek Orthodox Patriarchate of Jerusalem, as announced by Protecting Holy Land Christians, a group founded by Patriarch Theophilos III of Jerusalem.

“On Wednesday, August 6, the Jerusalem Municipality unilaterally decided to freeze the Greek Orthodox Patriarchate of Jerusalem’s bank account. It is our understanding that the reasoning behind this decision is related to the issue of Arnona,” or property tax, the group’s statement said.

The dispute between the municipality and several churches that hold property in Jerusalem has been ongoing for years. For decades, an agreement between the churches and the State of Israel had prevented the city from collecting property tax from Christian institutions.

However, in 2018, the municipality ruled that tax exemptions applied only to properties used “for prayer, for the teaching of religion, or for needs arising from that.” This excluded income-generating activities serving pilgrims — such as guesthouses and coffee shops — and opened the door for the city to seek bills worth tens of millions of shekels.

That year, then-mayor Nir Barkat froze the bank accounts of several churches, prompting a rare protest in which Christian leaders closed the Church of the Holy Sepulchre for three days. The accounts were unfrozen only after intervention by then–Prime Minister Benjamin Netanyahu.

Tensions, however, have resurfaced several times since, focusing on specific properties and activities.

“As religious bodies, the churches fulfil vital roles by maintaining educational, welfare, and charitable institutions that serve the local population, whether Christian or not,” the statement from Protecting Holy Land Christians noted. “Because of this, historically, the churches have never paid municipal or governmental taxes for church properties whether during the periods of Ottoman, British, Jordanian, or Israeli rule.”

According to the group, the freeze has left the Patriarchate unable to pay salaries to its clergy, teachers, and staff. Other churches in Jerusalem are also facing legal challenges over property taxes. A case brought against the Armenian Patriarchate by the municipality is scheduled for discussion in September.

Tags: Patriarch Theophilos of JerusalemPatriarchate of Jerusalem

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