New temporary regulations are bringing significant benefits to those who have recently relocated to Israel. According to the latest update, First-Time Residents and Qualifying Returning Residents (who became Israeli residents between November 5, 2025, and the end of the 2026 tax year) are now eligible for tax exemptions on business and salary income produced within Israel.
Annual Exemption Ceilings:
The following table outlines the maximum annual income amounts (in NIS) eligible for the tax exemption:
| Tax Year | Annual Exemption Ceiling (NIS) |
| 2026 | ₪600,000 |
| 2027–2028 | ₪1,000,000 |
| 2029 | ₪350,000 |
| 2030 | ₪150,000 |
Important: New Reporting Requirements
Please be advised that starting in 2026, a new mandatory reporting requirement applies to all foreign-sourced income, even if it remains tax-exempt. As the law includes various conditions and limitations, we highly recommend evaluating each case individually.
Need to check your eligibility or require assistance with filing?
Our firm specializes in representing returning residents and new immigrants before the Israeli Tax Authority. Contact us today for professional consultation.