The capital of Israel is Jerusalem.
West Jerusalem was established as the national capital in 1950; and in 1980 the Jerusalem Law made the entire unified city of Jerusalem the Israeli capital.
It is understandable that Israel, being of holy significance to 3 major religions (Judaism, Christianity and Islam) and being one of the most fought-over and conquered pieces of land in the history of mankind, will spark a monsoon of debate, as to who owns what. But, the fact remains that the capital of Israel was proclaimed by the Israeli government and this capital is Jerusalem.
The issue that a lot of international groups have with the Israeli Declaration that Jerusalem is its capital is that the city defined by the Israelis as Jerusalem contains both de jureIsraeli territory (West Jerusalem) and the de jurenon-Israeli territory (East Jerusalem) which is owed, theoretically, to a Palestinian State. The UN Security Council Resolution 478 crystallized the international stance on this issue. If Israel, like East Germany, claimed that half of a city was its operating capital (i.e. West Jerusalem - but East Berlin in the German case), many international observers would have fewer objections to recognizing it as the capital of Israel. However, as the official Israeli capital contains territory that is not technically Israeli, many organizations and countries prefer to treat Tel Aviv, a city that is unequivocally Israeli and the site of David Ben Gurion's Declaration of Independence, as the working capital. Therefore, all embassies in Israel are in Tel Aviv.
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