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Israel Offers Full Income Tax Exemption for Returning Citizens and New Immigrants
Israel has enacted a temporary tax order providing a full income tax exemption for returning residents and new immigrants on earned income up to NIS 600,000 in the first year, and NIS 1 million in the next two. The benefit is available for those making aliyah or returning between November 2025 and December 31, 2026.
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What happened
- 01Israel offers full income tax exemption for returning citizens and new immigrants.
- 02The benefit applies to earned income up to NIS 600,000 in year one, NIS 1 million in years two and three.
- 03Eligibility requires aliyah or return between November 2025 and December 31, 2026.
- 04Official registration with the Ministry of Aliyah and Integration is mandatory.
- 05Restrictions apply, including a lower ceiling for income from relatives.
- 06The tax order expires at the end of 2026.
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