Story perspectives

Knesset Approves Tax Exemptions for Olim Until 2026

4/26/2026

Summary

Knesset Exempts Olim

The Knesset approved the Efficiency Law, adding Chapter D to exempt olim and returnees from tax.
Exemptions cover aliyah or returnees from Nov 5 2025 to end-2026, with limits of NIS 600k (2026), NIS 1 m (2027-28), NIS 350k (2029) and NIS 150k (2030).
Foreign firms earning only from these individuals also receive the exemption.
From Jan 1 2026 the exemption ends, requiring foreign-income disclosure and creating that work for a foreign company from Israel may form a taxable permanent establishment.

Summary

Israel Welcomes Immigrants

On April 23 2026, 240 Indian Bnei Menashe arrived at Ben-Gurion Airport on Operation “Wings of Dawn.”
The Aliyah and Integration Ministry and Jewish Agency run the operation, coordinating with the Foreign Ministry, and will place arrivals in Nof HaGalil centers to join relatives.
Officials target 600 immigrants this year, 1,200 by end-2026 and 6,000 by 2030, a plan approved in November by Minister Benjamin Netanyahu, Aliyah and Integration Minister Ofir Sofer and Finance Minister Bezalel Smotrich.

History

Historical Context

After the Soviet Union’s collapse, Israel absorbed roughly one million former Soviet Jews between 1990 and 1995, a wave that spurred extensive absorption policies under the 1950 Law of Return. Today, with net negative migration since 2024, the government is revisiting tax incentives for new olim, hoping to replicate the demographic boost of that ‘Great Aliyah.’

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Knesset Exempts Olim

The Knesset approved the Efficiency Law, adding Chapter D to exempt olim and returnees from tax.
Exemptions cover aliyah or returnees from Nov 5 2025 to end-2026, with limits of NIS 600k (2026), NIS 1 m (2027-28), NIS 350k (2029) and NIS 150k (2030).
Foreign firms earning only from these individuals also receive the exemption.
From Jan 1 2026 the exemption ends, requiring foreign-income disclosure and creating that work for a foreign company from Israel may form a taxable permanent establishment.

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