Israel

Tax residency in Israel is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

New immigrant (Oleh Hadash) exemption: 10 years on foreign-source income + 0% on foreign capital gains. Returning resident: 10-year foreign income exemption if absent >6 years. Start-Up Nation ecosystem. Very high cost of living (Tel Aviv). Ongoing geopolitical risks (Gaza conflict 2023+).

The standard corporate income tax rate is 23%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Account opening in Israel can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet infrastructure is excellent, with widespread fibre broadband and reliable mobile connectivity across urban and suburban areas.

Israel is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Israel ranks highest for Founder / Entrepreneur and High Net Worth Individual. It offers a reasonable proposition for founder / entrepreneur (score: 49/100). It offers a reasonable proposition for high net worth individual (score: 43/100). It scores lower for founder / entrepreneur and high net worth individual and freelancer and digital nomad, who may find other jurisdictions more suitable for their specific requirements.