Acclimatization Year

Shnat Histaglut שנת הסתגלות

Shnat Histaglut - שנת הסתגלות - Year of Acclimatization is a special Israeli tax provision for Olim Chadashim - עולים חדשים - new immigrants, Toshavim Chozrim - תושבים חוזרים - Returning residents (6-10 years abroad) and Toshavim Chozrim Vatikim - תושבים חוזרים ותיקים - Veteran Returning Residents (10+ years abroad).

The benefit offers a one-year full or partial exemption from Israeli taxes on foreign-earned income, giving you financial relief to settle into life in Israel without immediate tax burdens.

Key Benefits

• Tax Relief: No Israeli taxes on foreign salaries or similar income during your first year.
• Time to Adjust: It allows you to focus on housing, schools, and building your new life without financial stress.
• Additional Support: Eligibility for Misrad Haklita – משרד הקליטה – Ministry of Aliyah and Integration assistance starts upon receiving your status.

Eligibility

• Olim Chadashim or Toshavim Chozrim (as defined by the Israeli Tax Authority).
• You need to file the request within 90 days of your Aliyah/arrival to secure the exemption.

How It Works

Israel taxes earned income only if you’re a tax resident (in Israel 180+ days/year) or citizen. By filing the Shnat Histaglut form within 90 days of making Aliyah, you signal to the Tax Authority that you’re taking a year to decide on residency. This keeps you exempt from Israeli taxes on foreign income for your first year—especially useful if arriving mid-year (July or later). After this period, if you stay, you’ll become a tax resident and are liable for taxes on global income from year two onward.

Note: During the Shnat Histaglut of a Toshav Chozer Vatik they are required to pay income tax in Israel and report all of their revenues originating from Israel to the local tax authorities.

Steps to Apply

• Timing: Submit the online form within 90 days of arrival.
• Documents: Attach a copy of your Teudat Zehut – תעודת זהות – Israeli ID (issued to Olim upon arrival in the country). Add scans of other relevant documents if applicable.
• Submission: Complete and send the form online. You will receive confirmation automatically.
• Please note that you can only submit this request once.

Important Notes

• Not Automatic: You must apply to claim the exemption.
• No Impact on Other Benefits: This only affects income tax, not other Aliyah perks like healthcare or customs exemptions.
• DIY-Friendly: No professional help needed—just fill it out yourself.
• After Year One: Plan ahead, as you’ll owe taxes on worldwide income if you stay beyond 180 days in year two.

Questions?

• Contact the Misrad Haklita’s Entrepreneurship Division at meital@moia.gov.il with any questions.
• Within Israel you can call *8115 and from out of the country 972-3-5117115. The service is available in English, Hebrew, Spanish, Russian and French
• You can also visit the Financial, Business and Tax Advice department of the Misrad HaKlita for more on tax concessions or email them at infobiz@014.net.il

This guide was created and translated by Shivat Zion based on information from Misrad Haklita’s website, Shivat Zion’s Knowledge Base and an article by Yaacov Jacob, the Director of the Individual & Partnership Department at Phillip Stein & Associates in Jerusalem.