New Immigrants and Veteran Returning Residents

On September 16, 2008 the state of Israel has enacted Amendment 168 to the Ordinance ("Amendment 168").
Amendment 168 significantly expanded the tax benefits provided to First Time Residents and Veteran Returning Residents, who arrives to Israel after January 1, 2007.

A Veteran Returning Resident is defined in the Ordinance as an individual who returned to be an Israeli Tax Resident after being a foreign Tax Resident for a period of at least ten consecutive years.

It should be noted that the exemption from reporting income and the realization of assets and activities outside Israel was revoked in April 2024 under Amendment 272 to the Income Tax Ordinance. Accordingly, beginning January 1, 2026, this reporting exemption will no longer apply to individuals returning or arriving in Israel after that date. This change may significantly affect reporting obligations for individuals planning to return or establish residency in Israel after the above date, and should be considered when assessing future tax and compliance planning.