Returning Residents and New Immigrants

The decision to make Aliyah to Israel or return after an extended stay abroad is both a Zionist and a deeply personal milestone, yet it carries significant financial challenges. Many fear that the State's "embrace" will turn into a bear hug from the Israel Tax Authority, reaching into their pockets and demanding taxes on assets, pensions, and businesses painstakingly accumulated overseas. Lack of awareness or poor planning before arriving in Israel can lead to the loss of exemptions worth millions and the unnecessary exposure of global income to the Israeli tax net.

The State of Israel, aiming to encourage Aliyah and the return of human capital, has created one of the most attractive tax regimes in the world (Amendment 168 to the Income Tax Ordinance). New immigrants and "veteran returning residents" (those who resided abroad for over 10 years) are entitled tofull exemption from tax and reporting for 10 years on all income sourced outside Israel (passive income, capital gains, foreign business income, salary for work performed abroad, and more). "Regular returning residents" (6 years abroad) are also entitled to significant benefits, albeit more limited in scope. The key is knowing how to fully realize this entitlement.

Our firm accompanies you even before you book your flight. We conduct early tax planning ("Pre-Immigration Planning") to ensure that your overseas asset structure complies with Israeli law requirements. We know how to neutralize pitfalls such as "management and control from Israel" (which can void the exemption for foreign companies) and how to properly plan the date of severance and residency. Our goal: to allow you to land in Israel with peace of mind, knowing your global wealth is protected.