Toshav Hozer

Returning residents

 A long-time returning resident is a resident of Israel who has severed the center of his life in Israel in favor of permanent residence abroad for at least 10 consecutive years. You can receive recognition of the status from the tax authority and enjoy tax benefits after staying abroad for at least 10 years. The determination is uncertain. There are additional variables.and criteria that are examined by the Tax Authority before the decision is made whether to approve the application and recognize the applicant as a "long-term returning resident"

The counting of the years begins on the date of complete termination of residency for income tax purposes and not on the date of departure ("boarding the plane"). We were a person who had to prove that he was classified as a foreign resident and that he cut off his residency after immigrating for the entire period. It is not enough to prove a person's place of residence abroad in order to be classified as a foreign resident, but it is required to prove complete separation of residency from Israel for at least ten years in order to receive the rights and tax benefits that are granted by virtue of the status of "old returning resident".


The earlier the test is done for you, the more room and flexibility there is for changes. Checking the status after returning to Israel can be "too late" and critical for obtaining approval and eligibility for exemptions by virtue of the Income Tax Ordinance, so our recommendation is to check ahead of time whether you meet the definition of "returning resident" or "returning resident" while you were abroad already when you formed the decision to return to Israel.


Through supporting documents and information that the individual attaches to the application. In order to obtain certainty regarding eligibility, it was determined that any resident who wishes to be recognized as a "returning resident" must submit an application for a taxation decision through a representative. An answer regarding the decision will be received only after the application has been submitted to the International Taxation Department of the Tax Authority along with documents confirming the facts stated in the application. An application can also be submitted anonymously, which allows a written application without revealing the name and details of the applicant. This route is suitable for anyone who has been abroad, but there is doubt about the status of the applicant and even in cases where the application is made after returning to Israel.


for more information.

Preparation for the end of the benefits period

the reform published on September 16, 2008 was enacted with the aim of encouraging the immigration and return to Israel of new immigrants and Israelis who are considering returning to Israel. The reform established an exemption from reporting tax in Israel for a period of ten years, which will apply to assets and avoidance originating outside of Israel. The benefits encompass all types of expansions produced or grown outside of Israel, including: salary, business, labor, trade, interest, dividend, rent, royalties, and also capital gains from the sale of
assets originating abroad.

The reform provides a special and worthwhile opportunity to immigrate to Israel, as well as a new route for hundreds of thousands of Israelis living abroad to return home. This program forms a central pillar in the efforts of the State of Israel to increase the number of people who choose the State of Israel as the center of their lives. As part of the reform, immigrants and returning residents will benefit from an acclimatization route and an exemption Taxes also on new assets and activities outside of Israel. Since that reform, many individuals immigrated or returned to Israel in the status of immigrants or long-term returning residents

A long-time returning resident is someone who returned to Israel after being a foreign resident for at least 10 years. The provisions of the law grant those individual beneficiaries benefits such as a 10-year exemption from tax and reporting on all assets and income outside of Israel (the "benefit period"). With the end of the period of benefits and exemptions, the current income from abroad, for example, will be subject to tax, and in relation to capital gain - the exemption will be given even after the end of the period of benefits based on a linear ratio. As part of our ongoing work, we come across many beneficiary individuals who will soon finish the benefit perioand therefore we recommend paying attention to the points/instructions provided in the article .


Surveys show that the process of moving to a new home is one of the most stressful events in one’s life, even more so relocating or returning to your old country.

These days when you are carefully planning this important step, you will be happy to know that not only you do not have to bear the entire decision on your own, but that the move can be even joyful.

Using our over twenty five years successful experience of publishing guides (Going Home) for shipping to Israel, the 220V appliances market marine insurance and other important Aliyah subjects, we have created this special web site (toshav hozer) to cater for your tailored needs.

We hope this new web site will be of great assistant to you. It will save you time, money and frustration.  It will also lead you step by step through hidden problems that might arise, by explaining your rights and duties in order to avoid some of these complications. You will be advised on different subjects as how to ship your cargo, recommended shipping companies (listed by country / city), which item is most suitable for Israel and which items will not comply with the voltage, cycle and other specifications of the country.

Remember, the more prepared you are in advance, the smoother the move will be.

Our office assists and accompanies new immigrants and returning residents in all aspects of taxation. Our office is experienced in submitting applications for returning resident status and provides professional tax consulting services to the tax authorities before leaving Israel and also after returning to Israel and is available to its clients all the way, from planning immigration to Israel to moving and dealing with tax authorities in subsequent years.

More information from an Israeli accountant's website

A "foreign resident" will be considered one who fulfills one of two alternatives: the first is that he is not a resident of Israel according to the definition in the decree, that is, the center of his life is not in Israel. The center of life test includes the examination of the permanent home, the permanent residence of the individual and his nuclear family members (spouse and minor children), where his permanent place of business or employment is located, where his economic and social ties are located. If the individual was able to substantiate his claims that the center of his life is not in Israel - he will be considered a foreign resident in the tax year; The second, even if the center of his life is in Israel - in a certain tax year, he can still be considered a foreign resident in that year, if he stayed outside of Israel for at least 183 days in that year as well as in the following year, and the center of his life was outside of Israel in the following two years. 

More information from an Israeli accountant's website


As part of the reform, the taxation system practiced in Israel was fundamentally changed from territorial taxation for the most part to a system of taxation on a worldwide (personal) basis, that is, taxation according to the "residency" test. A resident of Israel for income tax purposes will be taxed on all of his income whether this income is generated in Israel or abroad and therefore the issue of defining residency for the taxpayer's tax purposes is of crucial importance.

The Income Tax Ordinance includes an essential qualitative test, and a technical/quantitative possession test for the purpose of determining Israeli residency and establishing the obligation of individuals to report and pay tax to the Israel Tax Authority. According to the essential test, a "resident of Israel" is an individual whose economic and personal interests are centered in Israel. Below we will review the residency test for individuals.  for more inforamtion.

Detachment of tax residency


A resident of Israel for tax purposes continues to be liable for tax according to the tax laws in Israel, even if he stays abroad for a long period of time for work, studies or for any other reason, unless he clearly and unequivocally proves that he moved the center of his life to a foreign country, severed his business ties and social ties with Israel and has the status of a resident for tax purposes in the new country to which he moved/immigrated. The issue of severing residency for income tax purposes and the date of exit from the Israeli tax net is one of the complex issues that provoke disputes between taxpayers and the Israel Tax Authority that have come before the Israeli courts. An individual's residency depends Many factors and each case is examined on a case-by-case basis in light of the circumstances of the taxpayer's life. As long as the departure is to a "treaty country", the provisions of the convention regarding residency are also important. for more information. 

In 2017, the Tax Authority published Form 1348, which is also required to be filled out and attached as an appendix to the annual tax report. The form consists of 26 questions that will help the income tax inspector to decide on the center of the individual's life and therefore the manner in which the form is filled is of utmost importance. At the top of the form, the taxpayer is required to declare the number of days of his stay in Israel in the tax year, as well as in the year and two years preceding it. He must also state the name of the country of residence and attach a residence permit from that country for the tax year. In order to substantiate the residency position, it is required to attach substantiating references that support his claim.

Please note - the requirements of the section for the individual from 2017 onwards in the event that an individual claims that he is not a "resident of Israel", even though he passed the presumption test, will be the obligation to submit a personal tax return (1301) + the obligation to submit form 1348 + the obligation of a legal report detailing the facts on which it is based his claim.




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