Relocation intelligence
🇮🇱 Moving to Israel: tax, residency and cost of living
Progressive 10-50% on worldwide income, plus national insurance and health levy. New olim (immigrants) get a ten-year exemption on foreign income and capital gains. Corporate tax 23%, VAT 18%.
Thinking of moving to Israel? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.
Key facts
- Top income tax
- 50%
- Corporate tax
- 23%
- Capital gains
- 25%
- Wealth tax
- No
- Inheritance tax
- No
- Cost of living index
- 63
- Safety
- 7/10
- Internet quality
- 8/10
- Visa-free destinations
- 153
- Foreigners can own property
- Yes
- Residency in
- 0 months
- Citizenship in
- 0 years
Taxes
Progressive 10-50% on worldwide income plus national insurance and health levy. New immigrants (olim) get a ten-year exemption on foreign income; after that the full rate applies.
Residency and visas
There is no general labour or points migration; residence and citizenship run almost exclusively via the Law of Return for Jews.
Property ownership
Foreigners may buy property, though much land is state land under long leasehold.
Cost of living and quality of life
Highly developed with good healthcare and a tech economy, but high costs (especially Tel Aviv) and an ongoing security situation with conscription.
Passport and mobility
The Israeli passport is strong (about 153 destinations), but strength fell in 2026 due to war-related travel restrictions.
Why people move to Israel
Ten-year exemption on foreign income for new olim
New immigrants pay no tax on foreign income and capital gains for ten years, in a highly developed tech economy.
High top rate, high costs and security situation
After the exemption the rate rises to 50% on worldwide income, costs are high and there is an ongoing conflict with conscription.
Honest trade-offs
- Israel heeft geen algemene arbeids of puntenmigratie route. Verblijf en burgerschap zijn via de Wet op de Terugkeer feitelijk voorbehouden aan Joden, waardoor permanente vestiging voor niet Joden zeer moeilijk is.
- Er is een aanhoudende veiligheidssituatie met gewapend conflict, raketdreiging en verplichte militaire dienstplicht die ook geldt voor kinderen van immigranten.
- Israel belast het wereldwijde inkomen tegen een toptarief van 50 procent zodra de tien jaars vrijstelling voor nieuwe immigranten afloopt, en vanaf 1 januari 2026 moeten olim hun buitenlandse inkomen aangeven ook al is het vrijgesteld.
- De kosten van levensonderhoud zijn hoog, met name huisvesting in Tel Aviv, en Israel behoort tot de duurdere OESO landen.
- De Israelische paspoortsterkte is in 2026 gedaald door oorlog gerelateerde reisbeperkingen, en sommige landen weigeren houders van een Israelisch paspoort de toegang.
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