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Known for its thriving tech industry, rich cultural history, and stunning landscapes, Israel has become a top destination for expats seeking new career opportunities, vibrant communities, and an exciting lifestyle.
In this guide, we’ll walk you through everything you need to know about relocating to Israel from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
if you spend more than 182 days in Israel during the tax year period.
if your personal, economic and social ties are located in Israel during the tax year.
if you are present in Israel on 30 days during the tax year and 425 days in total in the current and previous two tax years.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
if you spend more than 182 days in Israel during the tax year period.
if you are registered with the Italian resident population.
if you are present in Israel on 30 days during the tax year and 425 days in total in the current and previous two tax years.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if your personal, economic and social ties are located in Israel during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
Providing that you are considered a ‘new immigrant’, foreign incomes and gains will be exempt from taxation in Israel for 10 years. You will be considered an new immigrant if you were non-resident for 10 consecutive years prior to arrival in Israel.
* Israel can be a very tax efficient place to live for expats & nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
If you receive incomes overseas while you are living in the Israel, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Israel has 60 double taxation agreements signed.
