Israel exit tax for individuals is calculated at the capital-gains tax rate

According to the source, an individual ending their tax connection with Israel may face an exit tax calculated at the capital-gains tax rate. The stated rate is 25%, rising to 30% for substantial shareholders, making the issue particularly important for people holding investments or significant equity stakes. For someone planning to leave Israel, this may affect the financial cost of relocation and the timing of a change in tax status. Investors and substantial shareholders should take the rule into account in long-term tax planning.