Tax break package for new immigrants and returning residents

The main benefits for new immigrants and returning residents who became citizens since January 1st 2007 and onwards are as follows:

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.

Who is entitled to the tax benefits?

“Oleh” - New immigrant.

“Senior Returning Resident” - Individuals who returned to Israel after they lived continuously outside of Israel, and returned to Israel not sooner than 10 years after having ceased to be a resident of Israel. Those individuals will be considered as “Oleh”.

"One-time measure" - Individuals who returned to Israel during the years 2007-2009 are considered as “Senior Returning Resident” even if lived continuously outside of Israel for at least 5 years (instead of 10 years).

for more details.