Israel Introduces Tax Holidays for New Immigrants Starting in 2026: Key Details and What You Need to Know

The Government of Israel has officially announced the preparation of a major tax reform aimed at encouraging new immigrants and attracting returning Israeli citizens. The initiative, presented by Finance Minister Bezalel Smotrich together with Minister of Aliyah and Integration Ofir Sofer, has already been reported by leading Israeli and international media, including i24NEWS, The Times of Israel, Jerusalem Post, and Globes.

What the Reform Offers

Beginning in 2026, new immigrants and returning residents will benefit from a zero income tax rate for the first two years of residency in Israel. This unprecedented measure is designed to ease the integration process and provide a solid economic foundation for new arrivals.

After the initial two-year tax holiday, the income tax rate for eligible individuals will gradually increase as follows:

• 0% in 2026–2027
• 10% in 2028
• 20% in 2029
• 30% in 2030

The tax benefit applies to income up to 1 million shekels per year.

This four-year phased approach is an exceptional example of direct, targeted tax support intended to encourage returning Israelis from the diaspora and to facilitate a more financially stable start for new immigrants.

Important Considerations

This initiative represents a government plan that must be finalized through the national budget and formal regulatory processes. Final parameters may be adjusted during legislative approval.

The benefits will apply to both new immigrants and returning residents, provided they meet the eligibility criteria, which typically include a required minimum period spent living abroad.

Detailed instructions and procedural guidelines are expected to be published closer to 2026, once the program receives final approval.

Why This Matters for New Immigrants

For many families and professionals, tax relief is a critical factor when planning a move or returning to Israel. A two-year tax exemption:

• reduces the financial burden during the adaptation period;
• helps stabilize income more quickly;
• simplifies integration into the economy and job market;
• strengthens Israel’s competitiveness compared to other destinations.

How to Take Advantage of the New Opportunity

The exact administrative procedure will be outlined closer to the effective date of the reform. However, it is advisable to begin preparing the necessary documentation to confirm eligibility in advance.

If you need assistance scheduling appointments with the relevant authorities, GoVisit offers a service for booking and managing appointments with government institutions in Israel. This can be particularly useful for those who wish to clarify requirements in advance or obtain guidance regarding procedures related to documentation and status.

How GoVisit Supports New Immigrants and Returning Residents

GoVisit is a service designed to simplify interaction with government offices in Israel. We help individuals navigate procedures related to documentation, adaptation, and preparation for appointments with ministries and municipal departments.

What We Provide

• appointment booking and queue reservations at relevant government offices (Misrad HaPnim, Misrad HaKlitah, regional administrations, municipalities);
• consultations regarding procedures and required documentation;
• guidance on steps before and after arrival in Israel;
• assistance in preparing complete document files for submission;
• support throughout all stages of interaction with government authorities.

Why It Matters

• many government procedures require advance booking, and available slots are often limited;
• requirements and regulations frequently change, so up-to-date information is essential;
• documentation errors can delay processes by weeks or even months;
• having a knowledgeable expert by your side significantly reduces stress and uncertainty.

GoVisit helps make the process of handling documentation and adapting to life in Israel clearer, more structured, and more manageable.