Israel
Western Asia · IL · 58 treaties
What are the main tax rates in Israel?
Israel has a top personal income tax rate of 50%, a corporate tax rate of 23%, and a capital gains tax rate of 25%. The standard VAT is 18%.
Tax profile
| Corporate income tax | 23% |
| Withholding — dividends | 25% |
| Withholding — interest | 25% |
| Withholding — royalties | 25% |
| VAT / GST (standard) | 18% |
| Personal income (top rate) | 50% |
| Capital gains | 25% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | Yes |
| CFC rules | Yes |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | B/5 Digital Nomad Visa |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Common questions
- How long does it take to become a tax resident in Israel?
- It takes 183 days to establish tax residency in Israel.
- Is cryptocurrency taxed as income in Israel?
- Yes, cryptocurrency is classified as taxable income in Israel, with a headline rate of 25%.
- Does Israel have a worldwide tax system?
- Yes, Israel operates under a worldwide tax system.
Tax residency
Hard to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- centre of life in Israel based on overall family, economic, and social ties
- presumption of residence if present in Israel 183 days or more in a tax year
- presumption of residence if present in Israel 30+ days in the tax year and 425+ days in that tax year plus the two preceding tax years (aggregate)
- treaty tie‑breaker tests such as permanent home, centre of vital interests, habitual abode, and nationality where applicable
- end of residency when the individual is regarded as a foreign tax resident, generally by spending at least 183 days outside Israel in both the tax year and the following year and having centre of life outside Israel in the third and fourth years (four‑year foreign‑residency test)
Israel uses a centre‑of‑life test supplemented by multi‑year day‑count presumptions and a four‑year foreign‑residency test, so simply leaving and dropping below 183 days is usually not enough to end residency quickly. Fully breaking tax residence typically requires sustained time abroad and demonstrating that the centre of life has shifted outside Israel, often over several years.
Source: Israel Tax Authority (Gov.il)
Tax treaty network (65)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Austria | 10% | 5% | 0% |
| Armenia | 15% | 10% | 10% |
| Australia | 15% | 10% | 5% |
| Belarus | 10% | 10% | 10% |
| Belgium | 15% | 15% | 10% |
| Brazil | 15% | 15% | 15% |
| Bulgaria | 12.5% | 10% | 12.5% |
| Canada | 15% | 10% | 10% |
| China | 10% | 10% | 10% |
| Croatia | 15% | 10% | 5% |
| Cyprus | — | — | — |
| Czechia | 15% | 10% | 5% |
| Denmark | 10% | 5% | 0% |
| Estonia | 5% | 5% | 0% |
| Finland | 15% | 10% | 10% |
| France | 15% | 10% | 10% |
| Georgia | 5% | 5% | 0% |
| Germany | 10% | 5% | 0% |
| Greece | 25% | 10% | 10% |
| Hungary | 15% | 0% | 0% |
| India | 10% | 10% | 10% |
| Ireland | 10% | 10% | 10% |
| Italy | 15% | 10% | 10% |
| Ivory Coast | — | — | — |
| Japan | 15% | 10% | 10% |
| Jordan | — | — | — |
| Kazakhstan | — | — | — |
| South Korea | 15% | 10% | 5% |
| Latvia | 15% | 10% | 5% |
| Lithuania | 15% | 10% | 10% |
| Luxembourg | 15% | 10% | 5% |
| Malta | 15% | 5% | 0% |
| Mexico | 10% | 10% | 10% |
| Moldova | 10% | 5% | 5% |
| Netherlands | 15% | 15% | 10% |
| North Macedonia | 15% | 10% | 5% |
| Montenegro | — | — | — |
| Norway | 25% | 25% | 10% |
| Poland | 10% | 5% | 10% |
| Portugal | 15% | 10% | 10% |
| Romania | 15% | 10% | 10% |
| Russia | 10% | 10% | 10% |
| Republic of Serbia | 15% | 10% | 10% |
| Singapore | 10% | 7% | 5% |
| Slovakia | 10% | 10% | 5% |
| Slovenia | 15% | 5% | 5% |
| South Africa | 25% | 25% | 0% |
| Spain | 10% | 10% | 7% |
| Sweden | 0% | 25% | 0% |
| Switzerland | 15% | 10% | 5% |
| Thailand | 15% | 15% | 15% |
| Turkey | 10% | 10% | 10% |
| Ukraine | 15% | 10% | 10% |
| United Kingdom | 15% | 10% | 0% |
| United States of America | 25% | 17.5% | 15% |
| Uzbekistan | 10% | 10% | 10% |
| Vietnam | 10% | 10% | 15% |
| Albania | 15% | 10% | 5% |
| Azerbaijan | 15% | 10% | 10% |
| Ethiopia | 15% | 10% | 5% |
| Jamaica | 22.5% | 15% | 10% |
| Panama | 20% | 15% | 15% |
| Philippines | 15% | 10% | 15% |
| Taiwan | 10% | 10% | 10% |
| United Arab Emirates | 15% | 10% | 12% |