🇮🇱 Taxes in Israel · For investors
Taxes in Israel
How residents and non-residents of Israel are taxed, and what personal income tax rates apply.
Israeli tax residents pay tax on their worldwide income. Non-residents pay tax only on income from Israeli sources and on capital gains from assets located in Israel.
Who pays tax and on what income
Israeli tax residents are taxed on the income they earn anywhere in the world. Non-resident individuals pay personal income tax on Israeli-source income and capital gains tax on assets located in Israel, subject to special exemptions for non-residents. Source rules determine when income is treated as coming from an Israeli source.
Personal income tax rates
Individuals are taxed at graduated rates that reach 47%. Annual taxable income above 698,280 Israeli shekels (ILS) is subject to an additional 3% surtax, which brings the top personal income tax rate to 50%.
Non-residents are taxed at the same rates as Israeli residents.
The exact tax burden depends on your situation. We will go through the details in a free consultation.
What matters to know about taxes in Israel
Graduated scale
Personal income tax rises to 47%, and income above 698,280 ILS a year carries an additional 3% surtax.
The same rates for everyone
Non-residents are taxed at the same rates as Israeli residents.
Exemptions for non-residents
Special capital gains tax exemptions are available to non-residents.
FAQ
What income do Israeli residents pay tax on?
What is the top personal income tax rate in Israel?
Do non-residents pay personal income tax in Israel?
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