New Tax Exemptions and Guidelines for Returning Residents and Immigrants
A new emergency regulation for 2026 offers substantial income tax exemptions on domestic earnings for new immigrants and returning residents, capped at 3.1 million NIS over five years.
A temporary emergency regulation starting in 2026 offers significant income tax exemptions for new immigrants and returning residents on active income generated within Israel. The entry window for this track is open for those who arrive or return between November 2025 and the end of the 2026 tax year, after which the track closes permanently.
Tax Ceilings and Allocation Over Five Years
Ceilings are set per tax year and fluctuate significantly: 600,000 NIS in 2026, 1 million NIS in each of 2027 and 2028, 350,000 NIS in 2029, and 150,000 NIS in 2030. Eligible income received from a relative is subject to a separate and much lower ceiling of 140,000 NIS per year, applicable from 2026 through 2029.
The cumulative sum of the ceilings across the five tax years reaches 3.1 million NIS. The vast majority of the benefit is concentrated in 2027 and 2028, with the incentive dropping sharply starting in 2029. Those entering the window at the very end enjoy the exact same benefits for those specific years as those who entered at the beginning.
Comparison with Existing Tracks
While veteran returning residents have long enjoyed exemptions on foreign-sourced income, this emergency regulation targets the exact opposite: domestic income generated inside Israel, such as a salary from an Israeli employer or income from a local business. The two tracks remain entirely distinct and are governed by different rules.
A returning resident certificate issued by the Ministry of Aliyah and Integration is a mandatory prerequisite. Registration is handled via an online form submitted during the six months prior to return, with an initial response delivered by email within approximately two weeks.
Healthcare Waiting Periods and Exemptions
The waiting period for public healthcare services is calculated based on a formula of one month of waiting for every year of absence, up to a maximum cap of six months. Individuals who continuously paid health insurance dues while abroad are entirely exempt from the waiting period. Those who halted payments can shorten the period by paying a redemption fee of 16,860 NIS, which can be settled in a single payment or up to six consecutive equal installments.
