Jerusalem (Visas & Travels) — In a bid to accelerate Jewish immigration and bolster Israel’s economy, the government has introduced one of the most generous tax packages in its history for new immigrants and returning residents arriving in 2026. The reforms, part of the 2026 state budget, offer significant financial relief on Israeli-sourced income while responding to a sharp rise in antisemitic incidents across Western countries, including France, Britain, Canada, and Australia.
Finance Minister Bezalel Smotrich announced the measures in November 2025, describing them as a “Zionist and economic revolution.” Speaking alongside Minister of Aliyah and Integration Ofir Sofer at a ceremony hosted by Nefesh B’Nefesh, Smotrich emphasized the dual goals: attracting skilled professionals, entrepreneurs, and investors while countering global instability.
“This is designed to attract skilled professionals, entrepreneurs and investors at a time of rising antisemitism abroad and shifting tax policies in Western countries such as Britain,” the Finance Ministry stated in its announcement.
Under the new program, eligible individuals — new immigrants (Olim Chadashim) under the Law of Return and veteran returning residents who have lived abroad for at least 10 consecutive years — who establish residency in Israel during 2026 will receive a full 0% income tax exemption on Israeli-sourced earned income (from personal exertion, such as salaries or business activities) for the first two years.
The exemption applies up to an annual cap of ₪1,000,000 (approximately $270,000–$305,000 USD, depending on exchange rates). The benefit tapers over subsequent years: up to ₪600,000 in 2028, ₪350,000 in 2029, and ₪150,000 in 2030.
These incentives supplement existing benefits, including a longstanding 10-year exemption on foreign-sourced income for new residents. The government has positioned 2026 as a unique one-year window for maximum advantages, urging prospective immigrants to act swiftly.
However, the package comes with a key trade-off: Starting January 1, 2026, the long-standing exemption from reporting worldwide income and assets to the Israel Tax Authority (ITA) has been repealed for anyone becoming a resident on or after that date. New arrivals must now file annual reports on all global income, foreign assets (including bank accounts, investments, real estate, pensions, trusts, and digital assets), even if the income remains tax-exempt.
Individuals who made Aliyah or returned before 2026 retain the prior rules, with no mandatory worldwide reporting during their exemption period.
The reforms are part of a broader national effort to boost Aliyah amid heightened security concerns. In January 2026, ministers approved the program “Nevertheless – Aliyah of Renewal,” which targets large-scale immigration from countries hit hardest by antisemitism. It includes fast-tracked bureaucracy (such as waiving apostille requirements for documents through the end of 2026), accelerated visa processing (within 30 days), extended validity for police clearances, and enhanced grants, housing aid, and monthly support for the first year.
The initiative aims for a national target of absorbing tens of thousands of immigrants in 2026, with a focus on Western nations where antisemitic incidents have surged since October 7, 2023.
For foreign workers and skilled experts, separate adjustments took effect January 1, 2026: The minimum prevailing wage for foreign national experts rose to ₪27,132 gross per month, ensuring competitive compensation in high-demand sectors like technology and industry.
Short-term tourist entry rules remain unchanged from the 2025 introduction of the ETA-IL (Electronic Travel Authorization). Visa-exempt nationals (including those from the US, EU, UK, and others) must apply online at least 72 hours before travel for a fee of about ₪25 (~$7 USD). The authorization is valid for two years (or until passport expiry) and permits stays of up to 90 days per visit for tourism or business. Entry is denied without prior approval.
Experts and immigration advisors urge careful planning. “This could be the most financially advantageous year ever for Aliyah,” noted one tax consultant, highlighting the combination of exemptions. However, the new reporting obligations add complexity, and professionals recommend consulting specialists early.
For the latest official guidance, visit the Population and Immigration Authority (piba.gov.il), Ministry of Aliyah and Integration, or the Israel Tax Authority websites. As global challenges persist, Israel’s 2026 reforms signal a strategic push to welcome a new generation of immigrants with unprecedented support.
This story reflects policies effective as of January 2026. Always verify with official sources before making relocation decisions. 🇮🇱
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