Congratulations! 10 Year Anniversary in Israel!
The State of Israel grants a tax benefit to new immigrants and returning residents. The purpose of the benefit is to encourage potential “Olim” and Returning Citizens of Israel to make Aliyah. The benefit is valid for 10 years it grants an exemption from reporting and paying tax on income and assets from abroad. It is valid for all types of income that originates outside of Israel except for: salary, dividends, interest or royalties, capital gains from the sale or rental of a business or real estate abroad.
Who is entitled to the benefits of a new immigrant?
An individual who was a resident of Israel for the first time.
But what happens at the end of the 10 tax years?
After a decade in which no tax has been paid, the tax benefits come to an end. The Israel tax authorities request their tax share. Many “Olim” find themselves under pressure from the new situation, and do not know how this will affect them financially.
We recommend that they contact an experienced CPA who fully understands the Israeli, US and UK tax system before the end of the period.
After helping many “Olim” deal with this situation, we can assure you that there are many things that can be done to minimize tax payments. It is important to plan this in advance Our experts have time to sit down with the client, to understand his financial situation and build him an optimal tax plan that utilizes the best available options including the different tax treaties between Israel and the other tax systems that the client is exposed to. Planning ahead of time saves unnecessary financial liability and dealing with the tax authorities.