The standoff between the Jerusalem Municipality and the Greek Orthodox Church is escalating and stands on the brink of explosion. On August 6, 2025, the city issued seizure orders on all the Church’s bank accounts in Israel, effectively paralyzing its activity. City officials claim the Church owes massive sums in unpaid property taxes, while the Church argues it holds a sweeping exemption and denounces the move as “persecution” and an “attack” by Israeli authorities
Religious and Political Crisis in Jerusalem
Church leaders frame the move as a religious, political, and economic crisis aimed at pushing Christians out of Jerusalem. Palestinians quickly seized on the issue, fueling the dispute and presenting it as part of Israel’s alleged plan to “Judaize” the city and marginalize both Christians and Muslims
The conflict is not new. In 2018, during Mayor Nir Barkat’s tenure, a similar crisis erupted when the Church’s accounts were seized. Back then, Prime Minister Benjamin Netanyahu intervened, and within three days the dispute ended with a compromise: the city received state funds as compensation, while the Church retained its exemption. The question now is whether the current prime minister will again intervene before this becomes a rift between Israel and the global Christian world
Property Tax Dispute and Commercial Assets
At the heart of the conflict lies the question of the property tax exemptions granted to religious institutions. There is no debate that buildings used for worship are exempt — synagogues, mosques, churches, and monasteries alike. The city, however, insists the exemption does not apply to buildings owned by the Church that serve commercial purposes. The Church counters that its exemption is sweeping and historic, dating back to Ottoman and British Mandate times and respected for decades in Israel
According to the municipality, this is standard enforcement meant to ensure equal application of the law. Officials stress the debt concerns commercial properties, not holy sites. Hotels, restaurants, and shops that generate revenue, they argue, should not be exempt from taxes
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Global Coverage and Implications for Jerusalem
The city further emphasizes that Jewish, Muslim, and Christian residents who are not religious institutions pay full property taxes on their commercial holdings. Tax revenue, the municipality notes, funds essential public services for all residents, including the Christian community, such as sanitation, lighting, and transportation
Officials claim previous enforcement efforts and seizures were ignored by the Church, making this measure a last resort after all dialogue attempts failed. In an official statement, the municipality expressed regret over the escalation but said it must act responsibly and transparently for the benefit of all Jerusalem residents. It also urged the Church to return to the negotiating table to avoid further enforcement actions
The Greek Orthodox Patriarchate, along with other churches in the Holy Land, condemned the move. They argue the seizures violate historic agreements — the Status Quo — which grant churches broad exemptions from taxation on religious and public-use properties. They accuse the city of taking a unilateral and aggressive step despite ongoing talks, breaking earlier assurances not to act in this way
The Church portrays the action as part of a “systematic campaign” to weaken Christian presence in the Holy Land and undermine its status
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International Media Storm Over Jerusalem
The dispute is drawing extensive international coverage. Palestinian officials, including the Presidential Committee for Church Affairs, denounced the seizures as an “unprecedented Israeli assault” designed to weaken Christianity in Jerusalem. Islamic media outlets, led by Turkey’s Anadolu Agency, also highlight the incident. Christian media worldwide echo the Church’s stance, calling on governments and diplomatic bodies to intervene and pressure Israel to reverse the decision
