uabb domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/sites/lawfirmbackup_200125/wordpress/wp-includes/functions.php on line 6131New immigrants and returning residents who have lived abroad for at least ten consecutive years (Toshav Hozer Vatik) are entitled to a significant benefit called an adjustment and acclimation year. This benefit is given for the first year of settlement in Israel, and includes various tax benefits and reliefs. What are these benefits and reliefs, and how do you get them? A lawyer from our firm specializing in immigration to Israel answers these questions here.<\/p>\n
Our law firm in Jerusalem and Tel Aviv specializes in immigration to Israel<\/a>. Our firm has extensive professional experience in providing legal assistance with the various authorities to new immigrants and returning residents. Among other things, we provide assistance with issues such as handling applications for tax benefits, starting a business, financial assistance to immigrants, and more.<\/p>\n Immigration to Israel<\/a>, like immigration to any other country, may involve various difficulties. Therefore, the State of Israel, which upholds the value of Jewish immigration and encourages immigration under the Law of Return, works in various ways to make things easier for new immigrants and returning citizens. One aspect of this is legal aid offered to new immigrants and returning residents upon their arrival in Israel. In order to encourage immigration of new residents and integrate returning residents who have settled abroad for a long period of time, the Knesset amended the Income Tax Ordinance<\/a>. In the amendment, various benefits for new immigrants and returning residents were added.<\/p>\n A major benefit in the above-mentioned amendment to the Income Tax Ordinance is called an “adjustment and acclimation year.” This benefit is reserved for new immigrants (who become Israeli residents for the first time) and returning residents who have lived abroad for at least ten consecutive years<\/a>. The Ministry of Aliyah and Integration views the adjustment and acclimation year as a real gift. Below we explain why, and what this gift consists of.<\/p>\n The meaning of an adjustment and acclimation year is that, during the first year of their stay in Israel, new immigrants and returning residents will not be considered residents of Israel for income tax purposes, despite the fact that they now mainly reside in Israel. This is meant to enable the immigrants to get a feel of life in Israel and decide whether they want to settle here, and gives them a full year to make a final decision on the matter.<\/p>\n Among the benefits offered during the adjustment and acclimation year are the non-applicability of the treaties for preventing double taxation that apply to Israeli residents. This means that profits accrued, for example, as a result of investments abroad during the adjustment and acclimation year, will not be taxed in Israel. In addition, Israel provides various benefits to non-residents, such as exemption from tax on selling shares in Israeli companies, exemptions under the Encouragement of Capital Investments Law<\/a>, exemptions from tax on interest income from foreign currency bank deposits (as stipulated in the regulations), and more. These benefits are reserved for individuals during their adjustment and acclimation year.<\/p>\n
<\/span><\/p>\nWhat Is the Meaning of an Adjustment and Acclimation Year for New Immigrants and Returning Residents?<\/h4>\n
Benefits Offered to New Immigrants and Returning Residents During Their Year of Adjustment and Acclimation<\/h4>\n
How Do You Obtain Eligibility for an Adjustment and Acclimation Year?<\/h4>\n