Welcome to Israel!
Did you make Aliyah in our beautiful country? Mazal Tov! The 1st question is what are the tax advantages for an ole hadash?
We wish you an easy and successful integration!
To make your integration (a little) easier, here's an article on the tax advantages you can claim, thanks to your status as a new immigrant.
For practical reasons, we will only discuss the tax advantages of mas ahnassa in this article. - income tax, and bitouah leoumi - Social Security.
There are indeed other advantages, such as a reduction in the payment of Arnona - property tax - but we won't go into detail here.
It pays to come to Israel
An Ole Hadash - a new immigrant who decides not to work during the 1era year of his Aliyah, will not pay dues to the Bitouah Leoumi - social security.
However, we would like to point out that if the new immigrant decides to set up a business, or go to work as an employee, he or she will have to pay his or her social security dues, like any Israeli resident.
Tax-free for 10 years!
As we've mentioned at various points on this site, an Israeli resident is subject to personal, not territorial, taxation. This means that no matter where he has registered his income, he must still declare it in Israel.
Reform 168 of the Israeli Tax Code, which came into force on January 1, 2009, is a major step forward.er January 2007, created a real earthquake on this subject.
In order to encourage the Aliyah of Jews from all over the world, the Israeli government has decided to exempt an Ole Hadash from tax on income earned abroad, for a period of 10 years following the date of his Aliyah.
So, if you still have an activity in France (employee, company), or if you still have a property that you rent out, you won't be taxed on this income in Israel!ALSO READ: Understanding Israel's tax system
It pays to be a new immigrant
From 2022
Regarding your income in Israel, the Israeli government has decided to give you tax credit points (nekoudot zikouye) during the 48 months following your aliyah.
These points are allocated as follows:
- During the 12 months following your aliyah: 1 point. (219 nis per month)
- For the following 18 months: 3 points. (657 nis per month)
- For the following 12 months: 2 points (438 nis per month)
- For the following 12 months: 1 point (219 nis per month)ALSO READ: Understanding tax credits in Israel
The law until the end of 2021
Regarding your income in Israel, the Israeli government gave you tax credit points (nekoudot zikouye) during the 42 months following your aliyah.
These points are allocated as follows:
- During the 18 months following your aliyah: 3 points.
- For the following 12 months: 2 points.
- For the following 12 months: 1 point.