Not a Latitax destination
Israel
New immigrants and senior returning residents still get a 10-year exemption on foreign income and gains in 2026, but those arriving from 1 January 2026 must now report that foreign income; olim arriving between 5 November 2025 and 31 December 2026 also get relief on Israeli-source income.
Income tax, top rate
Secondary50%
47% top bracket plus a 3% surtax on total income above ILS 721,560. A further 2% surtax applies to capital income above the same threshold from 2025.
Source: PwC Worldwide Tax Summaries - Personal income tax rates · checked 2026-09-29Capital gains
Secondary25%
30% for a 10%+ shareholder. Surtaxes of 3% plus 2% on capital income can take the rate to 30% (35% for substantial shareholders) above ILS 721,560.
Source: PwC Worldwide Tax Summaries - Israel individual income determination · checked 2026-09-29Corporate
Secondary23%
Reduced rates available under the Law for the Encouragement of Capital Investments for preferred technology enterprises.
Source: PwC Worldwide Tax Summaries - Corporate income tax rates · checked 2026-09-29Inheritance
SecondaryNone
Source: PwC Worldwide Tax Summaries - Personal income tax rates · checked 2026-09-29Wealth tax
SecondaryNone
Source: PwC Worldwide Tax Summaries - Personal income tax rates · checked 2026-09-29VAT
Secondary18%
Raised from 17% to 18% on 1 January 2025.
Source: PwC Worldwide Tax Summaries - VAT rates · checked 2026-09-29Looking for somewhere that works?
See the jurisdictions where a lawful move genuinely cuts tax.
See the right countries- s1PwC Worldwide Tax Summaries - Personal income tax ratessecondary · checked 2026-09-29
- s2PwC Worldwide Tax Summaries - Israel individual income determinationsecondary · checked 2026-09-29
- s3PwC Worldwide Tax Summaries - Corporate income tax ratessecondary · checked 2026-09-29
- s4PwC Worldwide Tax Summaries - VAT ratessecondary · checked 2026-09-29
- s5Grant Thornton Israel - New tax incentives for new immigrants and veteran returning residents (2026)secondary · checked 2026-09-29
- s6GOV.UK - Tax treatiesprimary · checked 2026-09-29