A Foreign Resident for tax purposes is defined in Section 1 of the Israeli Tax Ordinance (New Version), 1961 (the ”Ordinance”) as follows:
"Foreign resident" – a person who is not an Israeli resident, and also an individual for whom all the following hold true: (a) he stays abroad for at least 183 days in each year, in the tax year and in the subsequent tax year; (b) the center of his life was not in Israel, as said in paragraph (a)(1) of the definition of "Israeli Resident" or "Resident", during two tax years after the tax years said in subparagraph (a);
As it can be inferred from the above the definition of a Foreign Resident includes two alternatives:
A Foreign Resident is a person who is not considered as an Israel resident under the Center of Life Test above (the "First Alternative").
A Foreign Resident is an individual who meets with the following conditions: In the first two years of leaving Israel, he stays abroad for at least 183 days, per a year; In the third and fourth years of leaving Israel, he can approve that his center of life was not in Israel (the "Second Alternative")
In other words, the decision if an individual is an Israeli resident or a foreign resident for tax purposes determines by the Center of Life Test and according to the specific circumstances of each case.