Questions & Answers

No. A new immigrant is entitled to a full exemption from Israeli tax on all income derived or accrued outside Israel—whether passive or active—for a period of 10 years from the date of becoming an Israeli resident.
Legal basis: Income Tax Ordinance [New Version], Section 14(a).

No. As of 1 January 2026, the exemption from reporting foreign-source income has been abolished. Although foreign-source income remains exempt from Israeli tax for 10 years, new immigrants are now required to report their foreign assets from the first day of Israeli residency.
Legal basis: Economic Plan Law (Amendment No. 272), which repealed Section 134B of the Income Tax Ordinance.

To qualify as a Veteran Returning Resident and enjoy the same tax benefits as a new immigrant—including a 10-year exemption from Israeli tax on foreign-source income—you must have lived outside Israel for at least 10 consecutive years.
Legal basis: Income Tax Ordinance [New Version], Section 14(a).

The Year of Adjustment allows a new immigrant or Veteran Returning Resident to elect not to be treated as an Israeli tax resident during their first year in Israel.
This provides an opportunity to assess whether to permanently settle in Israel before becoming subject to Israeli tax residency.
To benefit from this election, notice must be given to the Israel Tax Authority within 90 days of arriving in Israel.
Legal basis: Income Tax Ordinance [New Version], Section 14(b).

No. Under the tax benefits available to new immigrants, a foreign company will not be regarded as an Israeli resident company solely because its management and control are exercised from Israel by a new

Eligibility for assistance from the Ministry of Aliyah and Integration is granted to any person who immigrates to Israel and is officially recognized as a new immigrant (Oleh), including a Returning Minor or an Immigrant Citizen, in accordance with the Law of Return.
Legal basis: Law of Return, 1950 (forming the basis for the Ministry of Aliyah and Integration Procedure No. 1.001 – General Eligibility for Basic Assistance).

Rental assistance generally begins during the second year after immigration, following the end of the Absorption Basket payments, and continues until the end of five years from the date on which the family receives new immigrant status.
Legal basis: Ministry of Aliyah and Integration Procedure No. 19.000 – Rental Assistance for New Immigrants.

I am planning to live in the Galilee. Will I be eligible for additional rental assistance?

A new immigrant who is registered with the Employment Service as a job seeker or is studying at an ulpan (Hebrew language program) may be eligible for a monthly Income Support Benefit for New Immigrants, subject to the household income test.
Legal basis: Ministry of Aliyah and Integration Procedure No. 6.113 – Income Support for Job-Seeking New Immigrants.

Yes. Lone soldiers who are new immigrants are entitled to enhanced rental assistance during their compulsory military service in the Israel Defense Forces (IDF) to help ensure suitable housing.
Legal basis: Knesset Publication – Rights of New Immigrants (2001), Section 6.3, and Ministry Procedure No. 11.186.

Yes. An insured woman who gives birth is entitled to a Maternity Grant from the National Insurance Institute (Bituach Leumi), which is paid directly into her bank account. As of 2026, the grant for a first child is ILS 2,103.
Legal basis: National Insurance Law [Consolidated Version], 1995, Section 44 (Maternity Grant).

Yes. Israeli law recognizes the unique circumstances of new immigrants and provides special provisions that facilitate the process of determining eligibility for a General Disability Pension.
Legal basis: National Insurance Law [Consolidated Version], Section 197 (“Special Provisions Regarding New Immigrants”).

Any insured employee who has completed the required qualifying period and is lawfully seeking employment is entitled to unemployment benefits.
Legal basis: National Insurance Law [Consolidated Version], Chapter 7, Section 160.

A new immigrant who reaches retirement age in Israel is entitled to an Old-Age Pension, provided that they have completed the qualifying period (the required period of National Insurance contributions) prescribed by law.
Legal basis: National Insurance Law [Consolidated Version], Section 244.

No. Legislation enacted in February 2026 exempts qualifying self-employed new immigrants from paying duplicate social security contributions in both the United States and Israel during the first five years following immigration.
Legal basis: 2026 amendments to the National Insurance Regulations implementing the U.S.–Israel Social Security Agreement.

Under Israel’s anti-money laundering regulations, the bank will require an audit trail supported by documentation establishing the source of the funds, such as a U.S. Form 1040 tax return or the official real estate sale documents.
Legal basis: Prohibition on Money Laundering Law, 2000, and Bank of Israel Proper Conduct of Banking Business Directive No. 411.

U.S. citizens are required to provide their Social Security Number (SSN) and sign IRS Form W-9 so that the Israeli bank can report account information to the U.S. Internal Revenue Service (IRS).
Legal basis: Law Implementing the FATCA Intergovernmental Agreement (IGA).

The reporting exemption for cash brought into Israel through Ben Gurion Airport is ILS 50,000 per family. Any amount exceeding this threshold must be declared. Failure to do so may result in the bank refusing to accept the funds for deposit.
Legal basis: Prohibition on Money Laundering Order (Reporting Obligations Upon Entry Into and Exit From Israel).

A U.S. citizen is required to file an FBAR (Foreign Bank Account Report) with the U.S. Financial Crimes Enforcement Network (FinCEN) if the aggregate value of all of their financial accounts held outside the United States—including bank accounts and pension accounts in Israel—exceeds USD 10,000 at any time during the tax year.
Legal basis: Bank Secrecy Act and the FinCEN Regulations.

Beginning in 2026, qualifying new immigrants are entitled to a 0% Israeli tax rate on employment income during the initial benefit period. Because no Israeli tax is paid on such income, it is generally not possible to claim a foreign tax credit using IRS Form 1116. Instead, the Foreign Earned Income Exclusion may be claimed using IRS Form 2555.
Legal basis: Economic Arrangements Law 2026 and Section 911 of the U.S. Internal Revenue Code.