Israel: Far-Reaching Benefits for Returning Citizens

If you or someone you know is an Israeli citizen currently living outside the country and seeking to return – now may be the time to do so.

Yediot Aharonot newspaper reported on Thursday that the government is expected to pass a new plan on Sunday, under which returning Israelis would fall under the status of new immigrants and will be entitled to the benefits associated with this status.

The proposal was put together by Israeli Prime Minister Benjamin Netanyahu and the Ministry of Immigrant Absorption. The hope is that the plan would bring back 75,000 Israelis who currently reside outside of the country.

The benefits would apply to Israelis who have lived abroad for more than 6 years, and would include 3 tax credits for a period of a year and a half an exemption from tax payment on income from abroad for a period of 20 years an exemption from taxes on home purchases a discount on vehicle purchases.

Returning Israelis would also be entitled to extended benefits when it comes to find employment: Professional training, assistance with placement, career changes, and eligibility for loans for small businesses would all be included in the initiative.

The new initiative would also allow returning Israelis to receive health insurance (ie. join a health maintenance organization) immediately upon their return to Israel. Under the current law, returning Israelis can only join an HMO after a waiting period of 6 months and a fine of 9,000 NIS. The new initiative would cancel both the wait and the fine.

Prime Minister Netanyahu was quoted in Yediot Aharonotas saying: “The state’s support of returning citizens will help strengthen the economy.”

Minister of Immigrant Absorption Sofa Landver was quoted as saying: “I hope that the program will encourage Israelis living abroad to come home and strengthen Israel.”

The program is estimated to cost approximately 100 Million NIS.