A very common investment for people is property, i.e. receiving rental income. For these purposes, property income refers to income from any type of property (rents), including land (i.e. ground rent). This post will not deal with gains made on the sale of any property. For tax purposes, the nature and place of the property affects the way tax is levied in Israel. Israeli properties Residential properties As part of government housing policy, there are a number of tax-breaks and schemes available to those who have rental income from residential property in Israel – i.e. the property is being used to live in (rather than for business purposes). If your

In addition to Income Tax, Israel levies Bituach Leumi (National Insurance or Social Security) on earned income (and certain passive incomes). To all intents and purposes, this is another tax, although there are certain social benefits that accrue from making regular payments (e.g. maternity pay, disability pay, pension etc). Bituach Leumi is calculated on a monthly basis, not on a yearly basis. There are also virtually no exemptions for salaries. There are two rates for Bituach Leumi. The lower rate (3.5%) is for salaries of up to NIS 5,297 per month. Salaries above this amount, and up to NIS 42,435 are taxed at the