Israel to offer tax breaks to new immigrants in bid to boost economy

The Immigration and Absorption Ministry applauds a decision by Finance Minister Bezalel Smotrich to grant sweeping tax exemptions to new immigrants, calling it both a “net profit” for the state and a powerful engine of economic growth.

Under the new initiative, immigrants will receive significant tax relief during their first years in Israel, a move designed to attract investment, skilled labor, and entrepreneurs from around the world. The ministry said the measure to those used by other OECD nations that use favorable tax regimes to lure global talent.

Immigration inquiries have surged by hundreds of percent in the past two years, particularly from North America, Europe and the United Kingdom, amid rising antisemitism and global instability, the ministry says. Officials say the incentives could generate as much as NIS 900 million ($276 million) annually through new businesses, increased employment and indirect tax revenue.

The announcement comes days after the Immigration and Absorption Ministry launched a new plan to work with Israeli companies to provide employment for immigrants as soon as they arrive in the country.

For every shekel invested in immigrants, Israel earns at least four in return, Immigration and Absorption Ministry Director General Avichai Kahana notes.