New Olim in Israel Will Be Required to Report Foreign Assets

JERUSALEM – An amendment (Amendment 272) to the Income Tax Ordinance will take effect on January 1, 2026, changing the reporting rules for new immigrants (Olim) and returning Israeli residents. They will now be obligated to provide full disclosure of all their foreign income and assets.

Previously, new Olim and returning residents enjoyed an exemption from reporting their foreign assets for up to ten years. The new reporting requirements will apply to those who become Israeli residents after January 1, 2026. Those who made Aliyah or returned to Israel before this date will remain subject to the former reporting rules.

According to experts, the amendment is aimed at increasing financial transparency and ensuring compliance with international standards for the exchange of information on foreign assets, as well as reducing the risks of tax evasion. Despite the new reporting rules, the tax exemption on foreign-source income for new Olim remains in effect.

Experts advise potential new immigrants to prepare information about their foreign assets and income in advance to avoid potential issues with the tax authorities.