What are the income tax rates in Israel?

In Israel, the personal income tax ranges from 10% – 50%. Corporations pay a 23% corporate tax rate. Capital gains are taxed at 25%. VAT is 17%.

Is Israel crypto-friendly?

Israel has standard tax treatment for cryptocurrencies (crypto score 2/5). Gains are generally taxed as capital gains or ordinary income.

How can you get residency in Israel?

Israel offers the following residency options: digital nomad visa (approx. 12 months to process). A minimum presence of 183 days per year is required.

What is the cost of living in Israel?

The cost of living in Israel is high (index 82) (reference: 100 = New York City). Safety index is 5.2/10. Average internet speed is 120 Mbps. Compared to Western Europe or the US, Israel offers excellent value for expats.

Is Israel a good destination for digital nomads?

Israel has a dedicated digital nomad visa, making it straightforward for remote workers to live legally in the country. Average internet speed is 120 Mbps — suitable for remote work.

What is healthcare like in Israel?

Healthcare quality in Israel is excellent (score 8/10). Expats typically have access to high-quality care. Israel is recognized for its world-class healthcare system.

Is Israel a good place for remote work?

Israel is a viable destination for remote workers. Advantages include: digital nomad visa, 120 Mbps internet.

Israel — Tax Guide, Residency & Cost of Living for Expats

Asia · Middle EastUpdated 2026

Tax Score

38/100Worldwide

Tax Data

Income Tax10% – 50%

Corporate Tax23%

Capital Gains25%

VAT/GST17%

Wealth TaxNo

Inheritance TaxNo

Residency & Visas

Golden VisaNo

Digital Nomad VisaYes

Cost of Living & Quality of Life

Cost of Living Index82

Safety5.2/10

Internet120 Mbps

Healthcare8/10

Gasoline$2.75/L

Tax Overview

Israel applies a worldwide tax system with high progressive rates. Residents are taxed on their global income, which can represent a significant burden for high earners.

Personal Income Tax

Personal income tax in Israel ranges from 10% – 50% progressively. The top marginal rate is high by regional standards.

Corporate & Capital Gains

The corporate tax rate is 23%. Capital gains are taxed at 25%.

Indirect Taxes & Wealth

VAT/GST is 17%, moderate by international standards. There is no wealth tax. There is no inheritance tax.

Crypto & Digital Assets

Israel has an unfavorable crypto tax regime (score 2/5). Rates are high and/or regulations are restrictive.

Compare with other countries

Residency Guide

Relocating to Israel is accessible with multiple options. The country offers several residency pathways for foreigners.

Visa Options

Digital Nomad Visa: Israel offers a dedicated visa for remote workers, with processing taking approximately 12 months.

Practical Considerations

As a non-LATAM destination, applicants should consider potential language barriers and cultural differences. Working with a local immigration attorney and verifying apostille/legalization requirements for documents is recommended.

Also consider: United Arab Emirates, Qatar, Kuwait

Lifestyle

Israel has a high cost of living, comparable to major world capitals.

Cost of Living

With an index of 82, Israel has a cost of living comparable to or exceeding New York City (100). It is one of the most expensive destinations in the world.

Safety & Infrastructure

With a safety score of 5.2/10, caution is recommended, especially outside tourist and expat areas. Fast internet at 120 Mbps average — excellent for remote work and streaming.

Healthcare

With a healthcare score of 8/10, Israel has a world-class healthcare system. Expats typically have access to high-quality care in both public and private sectors.

Quality of Life

Israel has a Human Development Index of 0.915 (classification: very high). This indicates excellent standards of education, health, and living standards.

Data: 2026 · Source: tax_foundation,pwc,manual

Pros & Cons

Pros

No wealth tax
No inheritance tax
Digital nomad visa available
Very high human development (HDI 0.915)
High-quality healthcare system (8/10)

Cons

Worldwide tax system — global income taxed
High top income tax rate (50%)
High capital gains tax (25%)
Moderately high cost of living (index 82)
Moderate safety — caution advised (5.2/10)
Unfavorable crypto regime (2/5)
Physical presence requirement (183+ days/year)

Frequently Asked Questions

Israel operates under a worldwide tax system: taxes residents on worldwide income, regardless of where it is earned. The top personal income tax rate is 50%.