Israel offers generous tax benefits to Olim. However, many individuals and families have assets, trusts, companies, investments, and compensation arrangements that require special attention by an Israeli tax advisor, as explained below.
If you are a settlor, beneficiary, trustee, protector, or otherwise connected to a trust, special Israeli tax rules may apply. This is particularly important where there are Israeli resident beneficiaries who have completed their ten-year exemption or where the trust will continue after the death of the settlor.
Trusts that own Israeli residential or commercial real estate often raise additional Israeli tax considerations and reporting requirements.
Transfers of assets between relatives can have unexpected tax consequences, particularly where either the donor or recipient is a new immigrant, Israeli resident, or non-resident.
Salary, consulting fees, partnership/LLC income classified as business income and other business profits merit attention under Israeli tax rules during the exemption period.
Reporting obligations for new immigrants have undergone significant changes. Certain trusts, companies, partnerships, and foreign investments must be reported to the Israeli Tax Authority annually, even where income remains exempt from Israeli tax.
Individuals who formally made Aliyah before actually moving to Israel should review how this timing may affect their tax status and eligibility for benefits.
If you lived in Israel before making Aliyah—whether as a student, tourist, temporary resident, or under another visa category—your eligibility for certain tax benefits may require review.
Individuals who continue to own or manage foreign companies after moving to Israel should examine whether this could create a taxable presence in Israel.
Employees relocating to Israel often hold stock options, RSUs, carried interests, or other equity awards granted abroad. Special allocation, reporting and taxation rules may apply where vesting occurs partly before and partly after arrival in Israel.
Owning a personal residence through a corporation or LLC may create Israeli tax inefficiencies and should generally be reviewed.
The acquisition of Israeli real estate may involve significant tax considerations, including purchase tax, future sale implications, ownership structure, and financing arrangements.
From 2026, Olim may qualify for substantial tax benefits on Israeli-sourced income including salaries and business income.
The real change occurs at the end of the ten-year benefit period. Advance planning may help reduce future tax costs and avoid unpleasant surprises.
You may wish to obtain Israeli tax advice if any of the following statements are true:
☐ I am connected to a trust (as a settlor, beneficiary, trustee, protector, or family member of someone who established a trust).
☐ I own or manage a business or investment structure outside Israel, such as a company, LLC, partnership, family office, or private investment fund.
☐ I receive compensation or income from abroad, including salary, consulting income, partnership income, stock options, RSUs, carried interest, or other equity-based compensation.
☐ I own real estate (inside or outside Israel), am planning to purchase Israeli real estate, or hold property through a company or LLC.
☐ I have made or received significant gifts or inheritances, or have family members living in different countries.
☐ I have already made Aliyah, previously lived in Israel, or my ten-year tax benefit period is approaching its end.
If you checked one or more boxes, a review of your circumstances may help identify planning opportunities and avoid unexpected tax consequences.
A Final Thought
Most Olim never encounter any significant tax issues. However, reviewing your situation early can often identify planning opportunities and help avoid costly mistakes later.
If any of the topics above sound familiar, consider obtaining professional advice shortly before or after your move to Israel.
About Benjamini & Co.
Benjamini & Co is a boutique law firm specializing exclusively in taxation, including income tax, international taxation, real estate taxation, and value added tax (VAT). The firm represents multinational and Israeli corporations, private and public companies, investment funds, trusts, high-net-worth individuals, and new immigrants to Israel.
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