As part of the State budget presented this week by Finance Minister Bezalel Smotrich, a new tax reform for new olim (immigrants to Israel) is set to be approved, offering significant tax relief.
The initiative is part of a broader national effort to encourage aliyah (immigration to Israel) and support the integration of newcomers into Israeli society and the economy.
The announcement comes amid rising antisemitism worldwide and recent changes to tax policies in Western countries, such as the United Kingdom. The program is designed to strengthen Israel’s economy by attracting skilled professionals, entrepreneurs, and Jewish investors from around the world, while helping them integrate successfully into Israeli society and the local market.
The initiative was introduced at an event held in partnership with Nefesh B’Nefesh, attended by Minister Smotrich, Minister Sofer, Tax Authority Director Shay Aharonovich, Finance Ministry Director-General Ilan Rom, Aliyah and Integration Ministry Director-General Avichai Kahana, Head of the Jewish Agency’s Aliyah and Absorption Unit Eran Berkowitz, Nefesh B’Nefesh CEO Rabbi Yehoshua Fass, and other senior officials and representatives of aliyah organizations. Speakers highlighted the Zionist value of the initiative and its expected contribution to Israel’s economy.
Tax Benefit Rates for 2026 and 2027 will be up to 0%. For 2028, they will be up to 10%, for 2029 up to 20%, and for 2030: up to 30%.
The reform will apply to annual income up to ₪1 million NIS.
In addition to this benefit, new olim will continue to receive existing entitlements, including a 10-year exemption on income earned abroad and tax credit points that are already granted to new immigrants and returning residents.
Minister of Finance Bezalel Smotrich praised the plan, saying, “Zionism has always been built on three pillars: settlement, security, and aliyah. Over the past two years, we have invested heavily in security, and thank God, Israel is in a different place today. In settlement, we are leading a revolution – in Judea and Samaria, the South, the North, the Negev, the Galilee, and the Golan.”
He added, “The year 2026 will bring a revolution in aliyah – not as a slogan, but as a practical plan of action.”
“I call upon Jews in the Diaspora and Israelis abroad: come home.
“My thanks to Minister Ofir Sofer for his partnership, to Tax Authority Director Shay Aharonovich for leading the professional work, and to Nefesh B’Nefesh for its years of dedication to encouraging Aliyah and strengthening Israel’s Jewish identity.”
Minister of Aliyah and Integration Ofir Sofer added: “Over the past three years, we have strengthened and rebuilt Israel’s aliyah and integration infrastructure. Today we are adding a major and meaningful component to our national effort to encourage aliya.”
“I am grateful to Minister Smotrich and all our partners for their productive collaboration. This is a data-driven and comprehensive initiative, designed to ensure optimal absorption for new olim, create real opportunities for their integration into Israeli society, and contribute to economic growth.
“Aliyah holds profound Zionist, social, and economic significance for the State of Israel. It strengthens our social fabric, brings high-quality human capital, and boosts growth, innovation, and national development.”
Source link
