Israel’s Finance Minister Bezalel Smotrich announces historic tax reform for new olim, offering 0% tax to spark worldwide Jewish immigration.
Jerusalem — In a bold and visionary move, Finance Minister Bezalel Smotrich has announced a sweeping tax reform for new olim (immigrants to Israel), marking a new era in Israel’s national effort to strengthen aliyah, economic growth, and Jewish unity worldwide.
Presented as part of the 2026 State Budget, the reform introduces unprecedented tax relief to make Israel the world’s most attractive destination for Jewish professionals, entrepreneurs, and investors seeking both security and spiritual belonging.
Under the new plan, new immigrants will pay up to 0% tax on income until 2027, with a gradual rate increase to 10% in 2028, 20% in 2029, and 30% in 2030 — applicable to annual earnings up to ₪1 million NIS. In addition, olim will continue to enjoy 10-year exemptions on foreign income and existing tax credits already granted to new residents.
The reform was unveiled at a ceremony co-hosted with Nefesh B’Nefesh, attended by senior government officials and Jewish agency leaders including Minister Ofir Sofer, Tax Authority Director Shay Aharonovich, and Aliyah & Integration Ministry DG Avichai Kahana. Speakers hailed the initiative as both a Zionist milestone and an economic catalyst, celebrating the fusion of faith and fiscal foresight.
Minister Smotrich declared:
“Zionism has always stood on three pillars — settlement, security, and aliyah. In security and settlement, Israel is already leading a revolution. Now, in 2026, we begin the revolution of aliyah — not as a slogan, but as a living plan.”
He extended a heartfelt call to Jews across the world:
“Come home. The gates of Zion are open wider than ever before. Israel needs your talent, your innovation, and your heart.”
Minister Ofir Sofer, Israel’s Aliyah and Integration chief, praised the program as a “comprehensive, data-driven initiative designed to ensure that every new immigrant not only arrives safely but thrives meaningfully.”
He added:
“Aliyah is not just a personal journey; it’s a national mission. Each new immigrant strengthens Israel’s economy, enriches its culture, and deepens the unity of our people.”
This initiative arrives as global antisemitism rises and Western tax regimes grow increasingly restrictive, making Israel a haven not just for the spirit, but for enterprise and economic opportunity.
The reform embodies Israel’s message to the Diaspora: the Jewish homeland is not just a refuge — it is the future.
