The Tax Authority reminds immigrants of tax benefits
Did you immigrate to Israel in recent years? The Tax Authority reminds you of the benefits that can reduce your tax liability in your first years in the country, alongside tax exemptions on certain income from abroad. And what has changed for those who immigrated in 2026?
The Tax Authority published a reminder today, Sunday, on social media for new immigrants regarding a series of tax benefits that may be relevant to them. Among other things, those who immigrated to Israel from 2022 onwards are entitled to additional income tax credit points during their first 54 months in the country. In addition, there is a significant tax benefit regarding income originating outside of Israel.
According to the Tax Authority, credit points are intended to reduce the amount of income tax payable, and eligibility for them is part of the state's policy to encourage immigration and strengthen economic integration. Alongside new immigrants, under certain conditions, returning residents and veteran returning residents may also be eligible for tax benefits.
The credit point benefit refers to income originating in Israel. The Tax Authority defines, among other things, wages for work performed in Israel, income from a business managed in Israel, rent from real estate in Israel, interest or dividends from an Israeli company, and capital gains from the sale of an asset located in Israel as income originating in Israel.
Another benefit concerns income originating outside of Israel. New immigrants are entitled to a tax exemption in Israel on income generated outside of Israel for 10 years from the date of immigration. However, the benefit does not apply to income from abroad for work performed in Israel.
An important change has been introduced for those who immigrated recently. The Tax Authority emphasizes that those who immigrated to Israel starting January 1, 2026, continue to enjoy the tax exemption on income originating outside of Israel, but unlike immigrants who arrived by the end of 2025, they are subject to a reporting obligation for this income. That is, the tax exemption remains in place, but the reporting obligation has changed.
In the rights guide of the Ministry of Aliyah and Integration, it is noted that eligibility for credit points lasts 4.5 years for those who immigrated from January 1, 2022, onwards, while those who immigrated before this date are entitled to the benefit for 3.5 years. It is further noted that there are certain conditions under which periods of regular military service, studies at a post-secondary institution, or prolonged stays outside of Israel may not be counted in the eligibility period.
Furthermore, in 2026, a temporary order came into effect granting an additional tax benefit to new immigrants and veteran returning residents who arrived in Israel between November 5, 2025, and December 31, 2026, on income from personal exertion generated in Israel. The benefit is granted during the tax years 2026 to 2030.
The Tax Authority directs immigrants to the official guide that details the benefits, conditions, and how to realize them.
