Published: 29.06.2026
Employment income earned by a foreign resident for services performed in Israel is subject to Israeli taxation unless an applicable tax treaty provides an exemption. Capital gains are generally taxed at 25%, with a 30% rate for shareholders holding at least 10%; Israeli residents are generally taxed on gains from assets worldwide.
According to the source, relocating to Israel for locally performed work can result in Israeli taxation of that employment income unless a tax treaty exemption applies. Investors and shareholders should note the 25% and 30% capital-gains rates, while Israeli tax residents may be taxed on gains from assets regardless of where those assets are located. The rule is most relevant to workers, investors, and new tax residents, who should factor it into relocation budgeting and income planning.