Middle East · ILS
Israel
Reviewed 2026-06-21
Top income tax
50%
Self-employed SS
Yes
VAT
18%
Capital gains
25%
Exit tax
Yes
Nomad visa
No
41
/ 100
Tax efficiency26
Ease to enter57
Ease to exit36
Cost of living65
Internet50
English60
Israel taxes residents on worldwide income at progressive rates that top out around 50 percent including the surtax, with a flat 23 percent corporate rate, 18 percent VAT, and 25 to 30 percent on capital gains and dividends. There is no wealth, estate, or inheritance tax, but an exit tax applies on a deemed sale of assets when you give up residency, and Israeli CFC rules can reach undistributed passive profits of low-taxed foreign companies. New immigrants and veteran returning residents get a ten-year exemption on most foreign-source income, which can make relocation attractive for a solopreneur with offshore earnings.
Personal income tax
Income tax structureProgressive
Top income tax rate50%
Entry income tax rate10%
Top rate threshold$196,000
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate12%
Employer SS rate7.6%
Indirect & other taxes
VAT standard rate18%
Capital gains rate25%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxYes
Exit tax triggerDeemed sale of all assets one day before an individual ceases to be an Israeli tax resident; gain may be paid on departure or deferred until actual disposal
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate23%
WHT on dividends25%
CFC rulesYes
Incentives & special regimes
Special expat regimeYes
Expat regime nameNew immigrant (oleh) and veteran returning resident 10-year foreign-income exemption
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index65.2
Internet speed217 Mbps
English proficiencyMedium
Civil liberties65
Sources
- PwC Worldwide Tax Summaries — Israel Individual Taxes on Personal Income
- PwC Worldwide Tax Summaries — Israel Corporate Other Taxes (VAT, National Insurance)
- PwC Worldwide Tax Summaries — Israel Individual Other Taxes (no estate/wealth tax)
- UNCTAD Investment Policy Monitor — Israel Innovation Visa program
- EF English Proficiency Index — Israel 2025 fact sheet
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.