Tax Benefits
Maximize Your Tax Advantages
Tax Benefits – Maximizing Your Entitlements
Relocating to Israel is not only a personal or ideological milestone—it is also an opportunity for smart financial planning. The State of Israel offers a range of significant tax benefits designed to facilitate the economic integration of new immigrants and returning residents.
At Cantor & Co., we ensure that you do more than simply qualify for these benefits—you actually take full advantage of every available tax incentive through a carefully planned long-term tax strategy.
At Cantor & Co., we ensure that you do more than simply qualify for these benefits—you actually take full advantage of every available tax incentive through a carefully planned long-term tax strategy.
What Tax Benefits Are Available?
The available tax benefits extend far beyond a general exemption and affect the ongoing management of your wealth and income.
- Income Tax Credit Points
New immigrants are entitled to additional income tax credit points during the first 42 months following their immigration to Israel, with extensions available in certain circumstances. These credits can translate into substantial savings on employment income earned in Israel. - Exemption on Passive Foreign Income
Interest, dividends, rental income, and royalties derived from assets located outside Israel may qualify for a 10-year exemption from Israeli taxation. - Exemption on Business Income
If you own and operate an active business outside Israel, income generated by that business may qualify for a 10-year exemption from Israeli tax, subject to the applicable legal requirements. - Tax Relief on Foreign Pension Income
Foreign pension income may benefit from significant tax relief and, in many cases, may qualify for a full exemption, helping preserve your financial security during retirement.
Strategic Tax Planning – Our Expertise
Most tax benefits are available for a limited period (typically 10 years). The way you structure and manage your assets today will have a significant impact on your financial position once those benefits expire.
We assist clients with:
- Income Analysis
Proper classification of income as active or passive, ensuring compliance with the applicable exemption rules. - Avoiding Double Taxation
Applying international tax treaties to help ensure that you are not taxed twice—both in your country of origin and in Israel. - Reporting & Asset Declarations
Preparing for future reporting obligations and declarations of assets in a manner that accurately reflects your foreign holdings while minimizing the risk of future disputes with the Israel Tax Authority.
The Bottom Line:
Israel’s tax benefits are a powerful financial planning tool—but only when managed strategically and professionally.Our role is to transform complex legal and tax rules into meaningful financial savings for you.
