Over the last years, the state of Israel has increasingly become a tax heaven in relation to attracting foreign capital and foreign residents and new immigrant’s investments, Due to a sophisticated tax system which enables tax benefits and relief as well as an impressive list of exemptions for foreign residents, new immigrant and returning Israelis.
On top of the above mentioned Israel enjoys a stable economy, a gradual reduction in taxation rates and extensive tax agreements (over 40 agreements) which places Israel as a leader in Investments in technology high tech companies and real estate assets as well as providing an ultimate framework for international taxation planning for companies and individuals.
Some of the tax benefits one may find interesting are as follows:
- Tax Exemption – On all types of income, earnings and assets (outside of Israel) for 10 years for new immigrants & returning Israelis.
- There is no estate tax Israel, and no gift tax apart from a gift to a “foreign citizen” of a taxable assets and capital gains in Israel.
- An exemption from capital gains tax for Foreign Residents on the sale of securities and traded on the TASE by foreign residents.
- An exemption from Capital Gains tax for Foreign Residents on the sale of shares in an Israeli company.
- An Exemption from Income tax on Interest on bank’s deposits by foreign resident’s and\or new immigrants.
- An exemption from tax for foreign residents on income from interest and linkage differentials on bonds traded on the TASE (subject to certain terms and conditions).
- An exemption from tax on residential rent up to approx. 900 euro per month per individual. Alternatively a reduced tax rate of only 10% on residential rents (without the deduction of expenses, credits or exemptions).
- Foreign citizen trust – under certain conditions, no tax liability shall apply to trusteeships and Israeli citizen beneficiaries.
- An exemption from capital gains tax in Israel for foreign investors in hedge funds.