What are the tax benefits for a new Oleh?

Olim benefit from a full 10-year exemption on foreign-source income (dividends, rent, interest, pensions). Added to this are the Nekoudot Zikoui (tax credits) and the 2026 Olim reform on Israeli active income.

How much are the Nekoudot Zikoui worth?

One point (nekuda) is worth 242 ₪/month. For Aliyah from 2022, the 54-month regime follows the 1/3/2/1 point schedule, a cumulative total of 24,684 ₪ in tax reduction (source Rashut HaMisim).

What is the French exit tax?

If your portfolio exceeds €800,000 or a stake above 50% in a company, the exit tax (art. 167 bis CGI) applies to unrealized capital gains upon leaving France. A payment deferral is possible under conditions.

Taxation – Aliyah Israel | Kings David Home

Israel offers one of the most favorable tax regimes in the world for new immigrants. Between the 10-year exemption on foreign income, the 2026 Olim Reform and tax credit points, advance planning is essential. All data presented here comes from verified official Israeli and French sources.

Tax benefits for Olim Hadashim

10 years

10-year exemption — Foreign income

Olim enjoy a full exemption on foreign-source income (dividends, rent, interest, pensions, capital gains) for 10 years from their Aliyah date.

Passive foreign income: 0% Israeli tax
No Israeli filing obligation on this income for 10 years
Also applies to foreign-source active income

⚠️ Source: Rashut HaMisim. Validate with a CPA for your individual situation.

New 2026

Olim Reform 2026 — Hora'at Sha'ah

Temporary provisions promulgated 31/03/2026 (gov.il: 06/05/2026). Exemption on Israeli active income (salary + self-employed) for Aliyah between 05/11/2025 and 31/12/2026.

2026: exemption up to ₪600,000
2027–2028: ₪1,000,000/year
2029: ₪350,000 — 2030: ₪150,000
Spouse: ₪140,000
Cumulative with nekoudot and 10-year exemption

⚠️ Source: gov.il (06/05/2026). Applies only to Aliyah within the window 05/11/2025–31/12/2026.

Official

Nekoudot Zikoui — Tax credit points

Automatic monthly reduction on your payroll tax. 1 nekuda = ₪242/month (₪2,904/year). Schedule for Aliyah ≥ 2022:

Months 1–12: 1 point → ₪242/mo
Months 13–30: 3 points → ₪726/mo
Months 31–42: 2 points → ₪484/mo
Months 43–54: 1 point → ₪242/mo
Cumulative total 54 months: ₪24,684

⚠️ Source: Rashut HaMisim / Kol-Zchut (24/05/2026). 1 point value = ₪242/mo — protected figure.

Real estate

Mas Rechisha — Property purchase tax

Preferential Oleh bracket (Takana 12): 0.5% up to ₪1,988,090 then 5%. Versus foreign bracket 8–10%. Valid 7 years.

On a ₪2M property: saving > ₪140,000 vs. foreign bracket
Brackets frozen 2025–2027
Valid 7 years from Aliyah date

⚠️ Source: misim.gov.il (official simulator). One point regarding the ceiling is under verification — to be confirmed.

France–Israel treaty & French obligations

Breaking French tax residency

Tax exit from France is validated on 4 criteria: domicile, main activity, center of economic interests, stay > 183 days.

Close non-strategic French bank accounts
File exit declaration with the tax authority
Keep all Israeli domicile documentation

French Exit Tax

If portfolio > €800,000 or participation > 50% in a company, exit tax (art. 167 bis CGI) applies to unrealized gains at departure.

PEA / shares: 31.4% (incl. 17.2% social levies)
Real estate: 17.2% social levies
Deferred payment possible under conditions

⚠️ The France–Israel bilateral treaty contains no mutual assistance-in-recovery clause — point to confirm with Cabinet Dray & Dray (OECD MAC).

Recommended partner

Cabinet Dray & Dray

For complex tax questions (exit tax, trust, multi-jurisdiction income), we refer to Cabinet Dray & Dray, specialists in France–Israel.

Contact: office@cpa-dray.com
Website: cpa-dray.com

Your France ↔ Israel tax table in the File

Section 6 produces a personalized comparative table with your Nekoudot Zikoui month by month over 54 months, and Mas Rechisha calculated on your exact real estate budget.

✓ France ↔ Israel comparative tax table tailored to your profile (section 6)
✓ Nekoudot Zikoui — your tax credits over 54 months, figure by figure (section 6)
✓ Mas Rechisha calculated on your real budget — Oleh vs. foreign saving (section 4)

Get my tax analysis →

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