Making Financial Aliyah

Expert Summary of Changes to the Israel Tax Code for Immigrants and Returning Citizens

Zack Miller — Tue, 27 Jan 2009 12:03:53 +0000

Deloitte has published a document outlining and summarizing changes and updates to the Israel tax rules for 2009 including corporate taxation, taxes paid on passive income and capital gains for new immigrants and returning citizens, and VAT.

As always, check with a professional to get specific, personalized information or contact me.

You can see the document here.

Nefesh B’Nefesh publishes a sample retirement budget

Zack Miller — Tue, 27 Jan 2009 11:39:29 +0000

Retirees should (hopefully) have an easier time living off a fixed income in Israel than they would in the U.S. Nefesh B’Nefesh has made it easier to estimate your spending needs in the Holy Land with an recent posting to their website.

Check out our recent article about revised Israeli tax rates for 2009.
Read about rents continuing to head upwards in Israel.
Or, if you’re a family considering emigrating to Israel, check out the family budget.

Photo credit: Lido Galilee

Israel Tax Rates in 2009

Zack Miller — Sun, 18 Jan 2009 10:57:07 +0000

There are lots of things prospective immigrants focus on when moving to Israel. Education, jobs, health care, quality of life.

While new immigrants will save BOATLOADS of money on their children’s education, much of the savings are eaten up by the relatively high Israeli income tax rates. Check out a recent post on the Nefesh B’Nefesh website regarding Israeli marginal income tax rates for 2009.

When you read the whole article (I recommend you do — there is also info regarding the national insurance taxes (Bituach Leumi) and car benefits (car benefits are considered taxable income in Israel), you’ll find that the 2009 income tax rates in Israel are:

Income tax rates
The current monthly income tax rates for employment and freelance income are as follows:

10%: on income up to NIS 4,590
15%: on income of NIS 4,591 – 8,160
23%: on income of NIS 8,161 – 12,250
30%: on income of NIS 12,251- 17,600
34%: on income of NIS 17,601 – 37,890
46%: on income above NIS 37,890