The Israeli government has announced a major new tax measure aimed at encouraging alyah and facilitating the integration of new immigrants.
Starting in 2026, new immigrants as well as returning residents will benefit from a 0% income tax rate on earnings up to one million shekels per year during their first two years of residence.
This initiative, jointly presented by Finance Minister Bezalel Smotrich and Minister of Aliyah and Integration Ofir Sofer, is part of a broader tax reform designed to strengthen Israel’s appeal to talented individuals, entrepreneurs, and Jewish investors worldwide.
A RESPONSE TO GLOBAL CHALLENGES AND A BOOST FOR ISRAELI SOCIETY
Amid rising anti-Semitism worldwide and changing tax policies in many Western countries, Israel seeks to position itself as a safe, competitive, and welcoming destination for Jews wishing to settle there.
The Israeli Authorities hope this reform will attract highly skilled professionals and capital, contributing to economic development, innovation, and national growth.
Beyond its economic dimension, this measure carries a strong Zionist and social value – strengthening the Israeli social fabric and revitalizing the alyah project, a historical pillar of nation-building.
0% TAX FOR NEW IMMIGRANTS : DETAILS OF THE TAX REFORM
New immigrants will benefit from a gradual increase in taxation over a five-year period, up to an annual income of one million shekels:
- 2026 – 2027 : 0 % tax
- 2028 : 10 %
- 2029 : 20 %
- 2030 : 30 %
These advantages are in addition to existing exemptions, such as the ten-year exemption on foreign income following settlement in Israel and specific tax credits granted to new residents.
CONCLUSION: A STRATEGIC AND TAX TURNING POINT FOR ISRAEL
This reform marks a major shift in Israeli tax policy. By offering exceptional conditions to new immigrants, Israel aims not only to attract global talent but also to strengthen its national identity and economic dynamism.
For those considering alyah, this measure represents a unique opportunity to settle in Israel while benefiting from a favorable tax environment and a framework conducive to personal and professional success.
Assuline & Co, a firm specializing in assisting newcomers in Israel, guides you through every step of your relocation.
Our experts in international taxation and Israeli law will help you optimize your tax situation, declare your income properly, and fully enjoy the advantages available to new immigrants.
Contact Assuline & Co today for a personalized consultation and discover how to turn your alyah project into a financial and human success story.