Israel unveils tax-free welcome for new immigrants in 2026
“Zionism has always relied on three pillars: security, settlement, and immigration,” Smotrich
The Israeli government has announced a sweeping tax reform designed to boost immigration and attract returning citizens. Beginning in 2026, new immigrants and returning Israelis will enjoy a zero income tax rate for two years, an unprecedented incentive introduced by Finance Minister Bezalel Smotrich and Minister of Aliyah and Integration Ofir Sofer.
Under the new framework, taxation for new arrivals will gradually increase: 0% in 2026–2027, 10% in 2028, 20% in 2029, and 30% in 2030. The benefit will apply to income up to one million shekels per year.
These incentives will complement existing benefits for immigrants, including a 10-year exemption on foreign income and eligibility for tax credit points.
Officials say the reform aims to attract skilled professionals, entrepreneurs, and Jewish investors at a time of rising antisemitism globally and shifting tax regimes in several Western countries, notably the United Kingdom.
At the Aliyah conference in Paris, Smotrich described the plan as a “revolution” in immigration policy.
“Zionism has always relied on three pillars: security, settlement, and immigration,” he said. “In 2026, we will launch a true revolution in the field of Aliyah not as a slogan, but as a concrete action plan.”
Minister Sofer added that the measure builds on three years of strengthening reception and integration infrastructure.
“This is a professional, large-scale reform based on solid data, aimed at ensuring optimal integration for new immigrants,” he said.
“Israel is the home of every Jewish man and woman,” Sofer concluded.
Israeli authorities frame the initiative as both a moral and economic strategy, positioning immigration as a driver of national growth, innovation, and development.