Tax benefits for new olim

The key points

• Arnona in Netanya: an 81% discount on up to 100 m², for one year within the first 24 months.¹
• Credit points: olim who arrived from 2022 get extra points for 54 months. One point is worth ₪242 a month in 2026.⁴
• Income from sources outside Israel is exempt from Israeli tax for 10 years.⁶
• For arrivals from 1 January 2026, the exemption from reporting foreign income and assets no longer applies.⁶
• The 2026–2030 relief on income earned in Israel can be used during the year, through tax coordination.¹⁰
• Olim pay reduced purchase tax on an apartment; details are on the buying page of this guide.¹¹

Arnona in Netanya

• Netanya gives an oleh an 81% discount on up to 100 m², for one year within 24 months, counted from registration in the Population Registry as an oleh under the Law of Return. Every square metre above 100 m² is charged in full.¹
• Documents: ID card (teudat zehut), oleh certificate (teudat oleh) and confirmation that you did not use the discount at an absorption centre or in a previous city.¹
• The national rule: a local authority may give up to 90% off on up to 100 m², for 12 months within the first 24.²³

Credit points (nekudot zikui)

• Olim who arrived from 1 January 2022 get extra points for 54 months: 1 point for the first 12 months, 3 points for the next 18, then 2 points for 12 months and 1 point for another 12. This is on top of a resident's 2.25 basic points.⁴
• One point is worth ₪242 a month in 2026 (₪2,904 a year). You can ask for periods of compulsory military service or post-secondary studies not to be counted. Refunds can be claimed for up to 6 years back.⁴⁵

Income from abroad

• Olim and veteran returning residents (more than 10 years abroad) pay no Israeli tax on income from sources outside Israel for 10 years: passive and active income, including a foreign pension.⁶
• Arrivals up to 31 December 2025 don't have to report foreign income and assets for 10 years. Arrivals from 1 January 2026 must report them, though that income stays exempt from Israeli tax for 10 years.⁶
• Interest on foreign-currency deposits in Israel is tax-exempt for 20 years from aliyah, under conditions: money you held abroad before aliyah, a deposit of at least 3 months, made within 90 days of the transfer. Ask your bank which declaration it needs.⁷
• US citizens: the IRS states that US citizens and resident aliens abroad are taxed on their worldwide income and must report it. Talk to a US–Israel tax adviser before you rely on Israeli exemptions.⁸

The 2026–2030 relief: 0% tax on income earned in Israel

• For new olim and veteran returning residents who became Israeli residents between 5 November 2025 and 31 December 2026: income from work in Israel is tax-exempt up to annual caps of ₪600,000 in 2026, ₪1,000,000 in 2027 and 2028, ₪350,000 in 2029 and ₪150,000 in 2030.⁹
• It does not cover rent, interest or dividends. The right is lost entirely if, in 2028 or 2029, you stop being a resident and spend fewer than 75 days in Israel.⁹
• You can use it during the year. If you are not required to file an annual return, through online tax coordination, on income up to ₪300,000 a year. If you are required to file, up to ₪500,000 a year, also by reducing advance payments. The rest is claimed on the annual return (form 1301). Income from working for a relative is claimed on the annual return only, up to ₪140,000 a year. The application form is 116ע (in Hebrew).¹⁰
• Free tax and business information line for olim (Ministry of Aliyah): *2994 in Israel, +972-3-9733333 from abroad.⁹

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