Politics

Last Thursday, the Minister of Aliyah and Integration, MK Ofir Sofer, and the Minister of Finance, MK Betzalel Smotrich, announced the Israeli government‘s intention to grant an income tax exemption to New Olim and Returning Residents who make Aliyah during 2026.

Let’s clarify the key points.

What exactly was announced?

A tax reform will grant new immigrants (New Olim) and Returning Residents an income tax exemption for 5 years, according to the following table:

Is this benefit already in effect?

Not yet, in order for the reform to take effect a legislative change is required which will take several months. In any case, when the new law goes into effect, it will apply retroactively.

Who will be eligible for the benefit?

New Olim and Returning Residents who have resided abroad for more than 10 years and who make Aliyah following the reform announcement date (November 5, 2025) and until the end of 2026.

Does this reform eliminate existing benefits?

No. New Olim will still be eligible for income tax exemption on foreign-source income for 10 years and for income tax credit points.

Should I postpone my Aliyah so that I can be eligible?

On the contrary, the purpose of announcing this reform is to help you make the decision and choose now, more than ever, to make Aliyah. Everyone who makes Aliyah from now until the end of 2026 will benefit from this significant tax advantage.