Full coverage· Economy· Updated
New Tax Breaks for Olim and Returning Residents Take Effect
A new Israeli law offers tax exemptions on income earned within Israel for new immigrants and returning residents who become residents by December 31, 2026.
2 newsrooms · 2 languages · since
Plus
What happened
- 01New Israeli tax law exempts income earned in Israel for new immigrants and returning residents until December 31, 2026.
- 02Annual tax-free income caps start at 600,000 shekels in 2026, rising to 1 million shekels in 2027-2028.
- 03The exemption applies to salaries and business income, but not dividends, interest, or rental income.
- 04Income from relatives or family-controlled companies is capped at 140,000 shekels annually.
- 05New arrivals from January 1, 2026, must now report foreign income and assets.
- 06The benefit is available to new immigrants and returning residents who became Israeli residents between November 5, 2025, and December 31, 2026.
The exemption applies to salaries and business income, with annual caps starting at 600,000 shekels in 2026 and rising to 1 million shekels in 2027-2028 before declining. While foreign income reporting is now mandatory for new arrivals from 2026, existing benefits remain, and individuals are advised to plan strategically.
The coverage
2 newsrooms on this story
Who covered it
- LeftNone
- Centre1
- RightNone
- HarediNone
- ArabNone
- Other1
