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Tax Benefits for New Immigrants (5/10 years) in Kfar Saba
10-year income tax exemption on foreign income, enhanced tax credits for 5 years, customs exemption on personal effects. Applies to all olim — including Ethiopian-Israelis.
About Kfar Saba
Kfar Saba hosts an Israeli-Ethiopian community with a concentration of academics and professionals integrated into the regional job market. The city offers quiet neighbourhoods, high quality of life and easy access to transportation and employment centres in the Sharon region.
What's included?
Tax exemptions (10 years from aliyah)
- Exemption on foreign income: salary, interest, dividends, capital gains from foreign source
- Foreign pension exemption: up to a ceiling
- Reduced reporting: in the early years, exempt from reporting foreign assets
Enhanced tax credits (5 years)
- Year 1: 3 extra credit points (~₪9,000)
- Year 2: 2 points
- Years 3-5: 1 point per year
Customs exemptions (3 years)
- Personal effects, vehicle (with conditions), professional equipment
- Calculated at peak value
How to claim
- Register aliyah: immigrant ID + aliyah confirmation from Ministry of Aliyah
- Open Tax Authority file: as oleh — automatic
- Apply for credit points: via employer (form 101) or accountant
- Personal effects: declare to Customs Authority within 3 years
📞 Israel Tax Authority: *4954
Related rights
Klita Basket — Absorption Aid for New Immigrants
Monthly cash payment to new immigrants during the first year post-aliyah. Amount varies by family status and age.
Klita Basket for Ethiopian Olim — Complete Guide
Ethiopian olim and Falash Mura immigrants receive an extended klita basket: monthly stipend, adjustment grants, ulpan voucher, 6-month health coverage, and vocational training.
Community Mortgage — 600,000 ILS for Ethiopian-Israelis
Govt loan for Ethiopian-Israeli families: ₪600,000 over 25 years, 0% interest for the first 10, 2% for the next 15. Allocated by annual lottery (~200 families).
Advanced Ulpan (Bet / Gimmel) — Hebrew Beyond Basics
Continued Hebrew studies beyond basic ulpan. Ulpan Bet (everyday), Gimmel (academic). Free / subsidized via Ministry of Aliyah. Every immigrant is eligible during the first 10 years.
