Tax on new Israeli residents

Key points

• Ten-year tax exemption for new Israeli residents.
• Clarification re ‘mixed’ income for Israeli residents working in the UK and Israel.
• Update to the double tax agreement between UK and Israel.

The business and trading relationship between Israel and the UK is ever growing. There are more than 300 Israeli companies which together employ thousands of individuals operating in the UK representing sectors including high tech pharmaceutical and finance. For more than ten years increasing numbers of people have moved to Israel – in 2018 more than 29 000 new immigrants arrived there.

There are extensive tax exemptions for new residents in relation to overseas income for a period of ten years. Israel and the UK also agreed a protocol to the their double taxation treaty on 17 January 2019 to provide more favourable tax treatments for Israeli investors into the UK and UK investors into Israel. This article looks at the...