Tax Benefits for New Immigrants from France

4 Key Questions to Ask Before Making Aliyah to Israel

Aliyah from France to Israel is often not a financial fresh start. Many new immigrants arrive with an apartment left behind, an active bank account, an investment portfolio, an existing business, or work that continues after the move. In this situation, it is important to understand the law in order to know which benefits apply to which types of income, and under what conditions.

Alongside the well-known benefits granted to new immigrants with respect to income from outside Israel, new legislation was introduced in Israel in 2026 that may, in certain cases, also provide a tax exemption for active income generated in Israel. For immigrants from France, who often have several sources of income at the same time and economic ties to both countries, this is an issue worth examining early on, rather than after the fact.

Question 1: Is every new immigrant from France automatically entitled to tax benefits?

No. Making Aliyah to Israel is not, in itself, sufficient, and an Oleh certificate does not settle the issue. The key question is when the individual became an Israeli resident for tax purposes. This is examined under the standard residency tests, primarily the center of life test.

This issue is particularly significant in gradual relocation processes. In some families, one spouse arrives first. In other cases, the children begin studying in Israel, but the apartment in France has not yet been sold, or employment there continues for an additional period. There are also cases in which the move to Israel takes place in practice, but part of the economic activity remains outside Israel. In each of these situations, the residency question may be less straightforward than it initially appears.

In addition, the new law also includes formal conditions. For a new immigrant, for example, an Oleh visa, an Oleh certificate, or eligibility for an absorption package is generally required. However, even when the documents exist, it is still necessary to examine what actually happened around the move. Anyone wishing to rely on the tax benefits must ensure that the factual circumstances and the legal position align.

Question 2: Do the benefits also apply to salary, or only to assets in France?

For years, one of the main benefits for new immigrants has been the Israeli tax exemption on income generated outside Israel, usually for a period of ten years. For immigrants from France who hold assets, investments, or income sources outside Israel, this remains a highly significant benefit.

At the same time, an additional route was introduced in 2026. Under the new law, new immigrants and veteran returning residents who became Israeli residents during the period from November 5, 2025 to December 31, 2026 may, under certain conditions, benefit from an Israeli tax exemption on qualifying income generated in Israel. This mainly refers to income from personal exertion under Sections 2(1) and 2(2) of the Income Tax Ordinance [New Version], meaning salary, business income, or professional income. This is a very important addition for those planning to start working in Israel, or to continue generating active income after making Aliyah.

On the other hand, not every type of income falls within this route. Passive income, such as interest, dividends, rent, and capital gains, is generally not included in the new exemption for active income in Israel. Therefore, when one family has both a salary in Israel and an apartment in France or an investment portfolio, different rules may apply to each component.

Question 3: What happens if I still have an apartment, investments, or a bank account in France?

This is one of the most common questions among immigrants from France, and for good reason. In many cases, the move to Israel is not accompanied by a complete closure of everything left behind in France. Some people keep a rented apartment. Others leave behind an investment portfolio, a bank account, rights in a company, or ongoing income from a foreign source.

The fact that assets or accounts remain in France does not, in itself, deny the benefits in Israel. However, it does require a precise review of the income structure and the manner in which the assets are held. Rental income is not examined in the same way as salary. Capital gains are not examined in the same way as professional income. Activity conducted through a foreign company is not examined in the same way as activity carried out directly by an individual.

This can be illustrated with a simple example. Assume that a family makes Aliyah from France to Israel during 2026. One spouse begins working in Israel with an annual salary of ₪560,000, while the family continues to own an apartment in Paris that generates monthly rental income. The employment income in Israel may, subject to the circumstances and the conditions of the law, fall within the new benefit route. The rental income from the apartment in Paris requires a separate review. These are two different types of income, even if they belong to the same family unit.

For many families, the picture is even more complex. Alongside an apartment in France, there may also be an investment portfolio. Alongside a salary in Israel, there may also be consulting activity with clients outside Israel. Alongside a bank account, there may also be a holding in a company. In these cases, it is highly advisable to consult with an expert who is knowledgeable not only in Israeli taxation, but also in French taxation.

Question 4: Does the timing of Aliyah to Israel affect eligibility for the benefit?

Yes. Those who became Israeli residents during the period from November 5, 2025 to December 31, 2026 may, if they meet the other conditions, fall within the new exemption route for certain active income in Israel. Those outside this time window may remain outside the benefit, even if their circumstances are very similar.

The amount of income also matters. As of the date of writing, the ceiling for 2026 is ₪600,000. In 2027 and 2028, the ceiling increases to ₪1,000,000 per year. In 2029, it decreases to ₪350,000, and in 2030 to ₪150,000. Where the income is received from a related party, lower ceilings have been set: ₪140,000 in the years 2026 through 2029, and ₪150,000 in 2030.