Israel Freezes Greek Orthodox Church Assets: Threatening Jerusalem’s Religious Status Quo

In a move that has intensified religious and diplomatic tensions in the Middle East, Israeli authorities have frozen all bank accounts belonging to the Greek Orthodox Patriarchate in Jerusalem. This unprecedented action has paralyzed one of Christianity’s oldest institutions, leaving it unable to pay clergy, teachers, and staff. The freeze not only threatens the daily operations of the Church but also challenges the centuries-old status quo of the Church of the Holy Sepulchre, one of Christianity’s most sacred sites. As diplomatic fallout spreads, Athens officials have issued sharp rebukes to Israeli representatives, highlighting the growing international dimensions of this religious dispute.

Details of the Greek Orthodox Church Asset Freeze

The financial freeze, implemented on August 6, 2025, has effectively crippled the operations of the Greek Orthodox Patriarchate in Jerusalem. According to statements from Protecting Holy Land Christians, a group founded by Theophilos III, the Greek Orthodox Patriarch of Jerusalem, the Church can no longer access its funds to pay salaries or maintain essential services.

At the heart of this dispute lies “Arnona,” Jerusalem’s property tax. The Jerusalem Municipality claims the freeze stems from the Patriarchate’s failure to pay property taxes on church-owned properties used for non-religious purposes, such as guesthouses and coffee shops. Municipal officials stated that “administrative enforcement measures were taken against the Greek Patriarchate because it failed to settle its property tax debts for assets not used as houses of worship.”

Greek Orthodox Patriarch Theophilos III addresses the media regarding the freezing of church assets.

For generations, churches in Jerusalem had been exempt from such taxes under agreements respected by Ottoman, British, Jordanian, and Israeli authorities. However, in 2018, Jerusalem city officials narrowed this exemption to properties used solely for prayer, religious teaching, or related needs, seeking tens of millions of shekels in back taxes from religious institutions.

The Patriarchate argues that this move violates long-standing agreements and threatens not only Christian presence in Jerusalem but also the vital social services the Church provides through its schools, clinics, and welfare programs that serve the broader community.

Significance of the Church of the Holy Sepulchre

The Church of the Holy Sepulchre, one of Christianity’s holiest sites, jointly administered by several Christian denominations including the Greek Orthodox Church.

The Church of the Holy Sepulchre stands as one of Christianity’s most sacred sites, believed to encompass both the location of Jesus Christ’s crucifixion and his empty tomb. Its administration is shared by several Christian denominations, with the Greek Orthodox Church playing a central role in its maintenance and religious ceremonies.

This current financial freeze echoes a similar crisis from 2018, when then-mayor Nir Barkat froze church accounts over tax disputes. That action prompted church leaders to take the extraordinary step of closing the Church of the Holy Sepulchre for three days in protest—the first such closure in decades. The municipality eventually relented after intervention from Prime Minister Benjamin Netanyahu.

The interior of the Church of the Holy Sepulchre, where daily religious ceremonies could be disrupted by the financial freeze.

The current freeze threatens to disrupt the delicate “Status Quo” arrangement that has governed Jerusalem’s holy sites since the Ottoman era. This longstanding agreement carefully balances the rights and responsibilities of different religious communities in managing sacred spaces. Any disruption to this balance could have far-reaching consequences for religious harmony in the city.

Church officials warn that without access to funds, they cannot maintain proper operations at holy sites, potentially forcing another closure of the Church of the Holy Sepulchre if the situation remains unresolved. Such a closure would affect thousands of pilgrims and could further inflame religious tensions in the region.

Greek Political Reactions to Israel’s Actions

The Athens mayor during his confrontation with the Israeli ambassador regarding Israel’s actions against the Greek Orthodox Church.

The asset freeze has triggered strong reactions from Greek officials, who view the protection of Orthodox heritage sites as part of their national responsibility. The most pointed response came from the mayor of Athens, who directly confronted the Israeli ambassador with the stark rebuke: “We won’t take lessons from those who kill children.”

This statement reflects growing tensions between Greece and Israel, particularly in light of Israel’s military actions in Gaza. The mayor’s comments highlight how the church asset freeze is being viewed not as an isolated tax dispute but as part of a broader pattern of actions that Greek officials find troubling.

Greek protesters in Athens demonstrating against Israel’s actions toward the Greek Orthodox Church and broader policies in the Middle East.

The Greek government has also issued formal diplomatic protests regarding the situation. Greek officials have emphasized the historical and religious significance of the Greek Orthodox presence in Jerusalem, which dates back to the Byzantine era. They view any threat to these institutions as an affront to Greek cultural heritage.

Public sentiment in Greece has increasingly turned critical of Israel’s policies. Anti-war protesters on Greece’s Cycladic island of Syros were among the first to demonstrate against Israeli visitors, with crowds chanting slogans and carrying banners reading “Stop the Genocide” and “No a/c in hell”—a reference to conditions Palestinians face in Gaza.

Port Workers and Public Demonstrations

Greek port workers have joined protests against Israeli ships docking in Greek harbors, citing both the church asset freeze and broader Middle East policies.

The diplomatic tension has extended to practical actions, with Greek port workers protesting the arrival of Israeli ships. These demonstrations represent a significant shift in Greek-Israeli relations, which had been improving over the past decade through increased economic and military cooperation.

Religious leaders in Greece have called for international intervention to protect Christian institutions in Jerusalem. The Archbishop of Athens has urged European Union officials to pressure Israel to reverse the asset freeze, framing it as an issue of religious freedom that demands international attention.

Broader Implications for Middle East Diplomacy

International diplomats gather to address the growing crisis over Jerusalem’s religious institutions.

The freezing of Greek Orthodox Church assets has implications far beyond a local tax dispute. It has become a flashpoint in the complex web of Middle Eastern diplomacy, particularly as it coincides with broader regional tensions related to the Gaza conflict.

Jordan, which maintains a special role as custodian of Muslim and Christian holy sites in Jerusalem under its peace treaty with Israel, has strongly condemned the asset freeze. The Jordanian Foreign Ministry described it as “a clear violation of the historical and legal status quo at the Islamic and Christian holy sites in occupied Jerusalem.”

Christian pilgrims find some religious services disrupted due to the financial constraints imposed by the asset freeze.

The situation has also drawn attention from the Vatican and other international Christian bodies. Latin Patriarch Pierbattista Pizzaballa, who oversees Roman Catholic properties in the Holy Land, has expressed solidarity with the Greek Orthodox Church, highlighting how this dispute affects the broader Christian presence in Jerusalem.

For Israel, the dispute comes at a time of already strained international relations due to its military operations in Gaza. Critics suggest the timing of the asset freeze may be politically motivated, pointing to Greece’s increasingly vocal opposition to Israel’s actions in Gaza.

Rising Attacks on Christian Institutions

Documented attacks on Christian sites in Jerusalem have increased, according to monitoring organizations.

The asset freeze occurs against a backdrop of increasing hostility toward Christian institutions in Jerusalem. The Rossing Center for Education and Dialogue documented 111 attacks on Christians in Israel in 2024, up from 89 the previous year. Clergy in religious dress have been particular targets, suffering assaults ranging from spitting and verbal abuse to physical violence.

In the West Bank, settler violence has increasingly targeted Christian villages and properties. In July, extremists attacked the majority-Christian village of Taybeh, torching a fifth-century church. These incidents have drawn condemnation from both religious leaders and political figures traditionally supportive of Israel.

For the estimated 50,000 Christians in Jerusalem and the West Bank, many of whom are Palestinians, these developments represent an existential threat to their continued presence in the Holy Land. Church leaders warn that without international intervention, the two-millennium-old Christian presence in Jerusalem could dwindle further.

The Path Forward

Leaders from various Christian denominations meet to coordinate their response to the financial restrictions.

As the standoff continues, several potential paths to resolution have emerged. Church leaders have called for international mediation, similar to the intervention that resolved the 2018 crisis. The Greek government has indicated it may raise the issue in European Union forums, potentially linking future EU-Israel relations to the protection of Christian heritage sites.

Israeli officials maintain that the dispute is purely administrative and not politically motivated. They have suggested that a payment plan for the disputed taxes could lead to unfreezing the accounts. However, church officials argue that accepting such an arrangement would undermine the historical tax exemptions that have protected religious institutions for centuries.

For Jerusalem’s Christian communities, particularly the Greek Orthodox faithful, the resolution of this dispute represents more than financial concerns—it speaks to their very future in the Holy Land. As one local Christian resident put it: “This isn’t just about money. It’s about whether we can continue to exist in the place where our faith began.”