Tax benefits for returning residents and new immigrants

Exempt on income earned abroad 14(A) An individual who was a resident of Israel for the first time and a long-term returning resident shall be exempt from tax for ten years from the date of the said residents of Israel, on their income from all sources listed in sections 2, 2a and 3, produced or grown outside Israel or originating outside Israel

Capital gain exempt

97(B) (1) An individual who was a resident of Israel for the first time and a long-term returning resident, as stated in section 14 (a), is exempt from capital gains tax on the sale of property he had outside Israel, if sold within ten years of being an Israeli resident

FRom ITA Guide

• 10 years exemption from tax paying on foreign-source income (i.e., income derived outside of Israel).

• 10 years exemption from declaring on foreign-source income which are exempted.

• 10 years exclusion from definition as an Israeli company resident - for a company established abroad and owned by an “Oleh” or a “Senior Returning Resident”.

• Option to be considered a foreign resident for taxation purposes, for one year from arrival.

• 3.5 years of entitlement to tax credit, with options of extension.