The Israel-Hamas war has led to significant discussion surrounding the increased antisemitism Jewish people and communities in the Diaspora are facing and how immigration to Israel will be impacted by the fallout of the war.

New olim (immigrants to Israel) and returning residents are eligible for a variety of benefits and tax breaks meant to encourage their residency and support their transition. Lawyers Eli Doron and Doron Pesso – tax experts from law firm Doron, Tikotzky, Kantor, Gutman, Amit Gross & Co. – have created a special guide of these benefits.

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Who are olim and returning residents?

New olim are those who have just become residents and citizens of Israel for the first time, while returning residents are those who have ceased their residency in Israel for at least five years and are returning, the guide explained.
Returning residents coming back to the country after more than 10 years have a different status, and they are often eligible for the same tax benefits as new olim.
The center of returning residents’ lives must be outside of Israel during the time they are not residents.
Olim on the 64th Nefesh B’Nefesh charter flight pose with the organization’s co-founders Rabbi Yehoshua Fass and Tony Gelbart; Aliyah and Integration Minister Ofir Sofer; and ministry Director-General Avichai Kahana. (credit: SHAHAR AZRAN, YONIT SCHILLER)
Olim on the 64th Nefesh B’Nefesh charter flight pose with the organization’s co-founders Rabbi Yehoshua Fass and Tony Gelbart; Aliyah and Integration Minister Ofir Sofer; and ministry Director-General Avichai Kahana. (credit: SHAHAR AZRAN, YONIT SCHILLER)

What benefits are new olim eligible for?

New olim are eligible for an “absorption basket” (sal klita) granted by the Aliyah and Integration Ministry. This basket includes a grant to help with integration, subsidies for ulpan Hebrew lessons, and help with rent, the attorneys explained.
New olim are also eligible for partial or full coverage of higher level education tuition, special scholarships, help to purchase an apartment (including special mortgage terms), and more, they said.
New olim also qualify for special tax advantages, including a tax break on income from abroad for 10 years, a tax break on VAT on personal imports, and more.

What benefits do returning residents qualify for?

Returning residents qualify for many of the same benefits new olim qualify for, the guide said.

Benefits for returning residents include benefits with employment, counseling, education, and tax breaks, it explained.

What benefits exist for buying a home in Israel?

New olim and returning citizens are not required to pay tax on purchasing a home for up to NIS 1.9m. as of 2024, the attorneys explained, adding that tax beyond this amount is reduced by 0.5% up to NIS 6 million.
Eligibility for this benefit begins one year before aliyah and lasts for seven years afterward.
Regular returning citizens are not eligible for this benefit.
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