Israel launches five-year income tax exemption for new immigrants

8 articles · Updated · Ynetnews · Apr 27

Eligible new immigrants and returning residents arriving between November 2025 and end-2026 will receive exemptions on Israeli-earned income, with annual caps ranging from 600,000 to 1 million shekels in initial years.
The exemption covers salaries and self-employed income but excludes passive income, and includes anti-abuse measures to prevent short-term moves solely for the tax break.
Existing benefits, such as tax credit points and a 10-year exemption on foreign-source income, remain in place, while the reform aims to ease financial integration and encourage aliyah.

How might this tax break for newcomers impact social cohesion within Israel?

Will a five-year tax break successfully reverse Israel's long-term 'brain drain'?

With foreign income reporting now mandatory, what is the true net benefit for immigrants?

Is this NIS 560 million plan an economic strategy or a demographic maneuver?

How does this immigration incentive appear amid an international genocide case at the ICJ?