With less than three months remaining until the end of 2026, individuals considering making Aliyah or returning to Israel as veteran returning residents should be aware that the window to qualify for the 2026 tax benefit is closing.
As a reminder, this temporary legislation provides new immigrants and veteran returning residents an exemption from on employment and business income performed in Israel during the 2026–2030 tax years. The exemption is limited to income thresholds which change from year to year. For further details regarding the new benefit, please see our previous client update on this topic.
As no extension of the qualifying period has been enacted to date, the qualifying period remains November 5, 2025 through December 31, 2026.
In order to obtain the benefit, the individual must transfer his or her center of life to Israel before the end of 2026. Importantly, formal immigration status alone does not determine eligibility.
Whether and when an individual’s center of life has transferred to Israel is determined based on the individual’s overall circumstances and ties to Israel. Relevant factors include, among others, the number of days spent in Israel and the frequency of visits, the location of the individual’s permanent home and family, business and economic ties, and social connections.
Accordingly, obtaining a new immigrant certificate or, in the case of an eligible veteran returning resident, a returning resident certificate, by December 31, 2026, is not, by itself, sufficient to secure eligibility for the benefit.
Given the limited time remaining, individuals who are considering making Aliyah or returning to Israel and wish to benefit from the new tax exemption should seek advice in advance regarding the timing of their move and the steps that may be required to establish eligibility.
For further information, please contact Adv. Yair Benjamini or Adv. Rosa Peled at our firm.
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