The Law for Encouraging Immigration to Israel and Return to Israel, 2026 serves as a key instrument in the Israeli Government’s policy to encourage immigration to Israel and the return of former residents through the provision of significant tax benefits on earned income for a limited period.
Who is Eligible?
The law applies to new immigrants and long-term returning residents, as defined by law, who arrive in Israel between November 5, 2025, and December 31, 2026.
Eligibility is subject to the following conditions:
- Residence in Israel for at least 75 days during 2027.
- Maintaining Israeli tax residency during 2028 or 2029 and residing in Israel for at least 75 days in each of those years.
It is not possible to defer Israeli tax residency by choosing a “Year of Adjustment” (Shnat Histaglut).
What Is the Benefit?
A tax exemption on earned income (employment income, business income, or professional income) generated in Israel, up to the limits established by law.
| Year | Maximum Exempt Amount |
| 2026 | Up to NIS 600,000 |
| 2027 | Up to NIS 1,000,000 |
| 2028 | Up to NIS 1,000,000 |
| 2029 | Up to NIS 350,000 |
| 2030 | Up to NIS 150,000 |
Notwithstanding the above, income received from a relative, as defined by law, will be eligible for a reduced tax exemption ceiling of NIS 140,000 per year.
How to Receive the Benefit?
You can receive the benefit through the annual tax return or by filing an amended tax return, in accordance with the procedures of the Israel Tax Authority.
For Further Information, Contact:
Mr. Etay Levanon
Human Capital Manager
eMail: [email protected]
Mobile: +972- 52-9214873
Disclaimer:
Tax benefits are subject to individual eligibility and Israel Tax Authority regulations.
This information is provided for general guidance only and does not constitute tax or legal advice.
Consultation with a qualified tax advisor is recommended.