The Israeli Ministry of Finance has proposed a bill that repeals the exemption previously granted to new immigrants and returning residents (hereinafter: “first-time Israeli residents”) from reporting their income outside of Israel for 10 years from the day of obtaining their status. This amendment was made in light of the threat from Western countries to put Israel on the blacklist of tax policy, which includes countries that legislate harm to other countries. The application of the law as currently proposed will affect those who change their status from June 1, 2025. Additionally, it states that the tax authorities will also be able to require the submission of reports by foreign companies controlled by a first-time Israeli resident. Apparently, the amendment clarifies that this is only about a reporting obligation and the exemption from tax will continue to be preserved for the 10 years, but experience teaches that once reporting is required, it could eventually lead to a tax liability or at least a demand. In light of the above, it is recommended for anyone considering making Aliyah, or who has left the country and 10 years have passed and they wish to return, to do so by May 31, 2025. Our office handles obtaining approvals for first-time residents of Israel and also tax planning before returning. For further details please contact our tax partner Adv. & CPA Yitzhak Fogel at yitzhak@hh-law.co.il