France-Israel Tax Convention (1995)
The bilateral convention of July 31, 1995 defines tax allocation rules between both countries. Tax residency is determined by "center of vital interests." After Aliyah, you become an Israeli tax resident.
10-Year Exemption for Olim
Israel grants new immigrants a 10-year tax exemption on foreign-source income (rental income, dividends, interest, capital gains from abroad).
⚠️ Maintained but declaration required: The 10-year exemption is maintained in 2026 but declaration is now mandatory post-01/01/2026.
French Exit Tax (LFSS 2026)
Threshold: €800,000 in securities or 50%+ ownership in a company. Rate: 31.4% on unrealized capital gains. Automatic deferral for Israel (treaty country).
Mas Rechisha — Purchase Tax
| Buyer | Rate | Example on 2.5M NIS |
|---|---|---|
| Oleh Hadash | 0% to 5% progressive | ~21,000 NIS |
| Non-resident | 8% flat | 200,000 NIS |
💡 Oleh savings: On a 2.5M NIS property, an Oleh saves 179,000 NIS (~$50,000) compared to a foreign buyer.