Israeli Tax Authority — Tax residency rules and fiscal residency determination for new immigrants

Source: https://www.nbn.org.il/life-in-israel/finances/taxes/taxation-in-israel-general-information · 2026

For Israeli tax purposes, an Israeli resident is defined as an individual whose center of life is in Israel, considering the person’s family, economic, and social links.

The Days Test

An individual is presumed to be an Israeli tax resident if:

• They are present in Israel at least 183 days in a tax year (ending December 31), OR
• They are present in Israel at least 30 days in the current tax year, AND 425 days cumulative in the current and two preceding tax years.

The Center of Life Test

Residency is also determined based on:

• Location of permanent home
• Place of residence of the individual and family
• Place where the individual regularly works or is employed
• Location of active and material economic interests
• Place where the individual is active in organizations, associations, or institutions

Fiscal Residency Start Date

Fiscal residency begins on the earliest of:

• The date stamped on the certificate issued by the Ministry of Aliyah & Absorption
• The date the individual started living in a permanent home in Israel
• The date any member of the family started living in a permanent home in Israel

Form 1348 – Residency Declaration (הצהרת תושבות)

Form 1348 applies to people who meet the days test criteria for Israeli tax residency, but who claim to be a non-Israeli tax resident based on the center of life test.

• The form must be filled out and attached to the Israeli tax return for the year in question.
• Acceptance of the claim is at the discretion of the Israeli Tax Authority.
• The form includes: number of days spent in Israel, whether the taxpayer is a resident of another foreign country, and detailed questions on family, business relationships, and other residency criteria.

Scope of Taxation

• Israeli residents are taxed on their worldwide income.
• Non-residents are taxed only on their Israeli-sourced income.
• Income includes employment, business income, and passive income (bank deposits, savings).