Rate
—
Duration
10 years
Prior non-residency
10 years
required before applying
Standard top income tax
50.0%
Israel, without the regime
Overview
- Regime
- Section 14 — new immigrant and senior returning resident
- Country
- Israel
- Type
- Exemption
- Status
- Active
- Effective from
- Jan 1, 2008
- Expires on
- —
Details
- Summary
- Ten-year exemption from Israeli tax on foreign-source income and on capital gains from assets outside Israel.
- Eligibility
- New immigrants and senior returning residents (generally ten continuous years abroad before becoming Israeli tax residents; shorter period for some 2007–2009 returnees).
- Benefits
- No Israeli tax on qualifying foreign passive and active income and on gains from foreign assets for ten years from residency start.
- Requirements
- Qualify as new immigrant or senior returning resident under the Income Tax Ordinance; complex sourcing rules apply to mixed activities.
- Limitations
- From 1 January 2026, those who become residents after 31 December 2025 must report foreign-source exempt income during the ten-year period.
- Income types covered
- Foreign dividends, interest, rent, royalties, pensions, salary and business income from abroad, and capital gains on foreign assets
- Duration details
- 10 years from becoming an Israeli tax resident
View source Income Tax Ordinance s.14; PwC Israel 2026