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Latest Updates / Tax
July 27, 2025
Israel or Foreign Resident? New Memorandum of Law Changes the Rules
On July 1, 2025, a memorandum of law was published for public comments proposing an amendment to the Israeli Income Tax Ordinance’s definition of “Israeli resident” for tax purposes. The amendment proposes to replace the rebuttable presumption with irrebuttable conclusive presumptions about whether an individual is an Israeli resident or a foreign resident
July 17, 2025
Adv. Harel Perlmutter on Walla News: The Upcoming Voluntary Disclosure Procedure for Digital Assets
Adv. Harel Perlmutter, Partner and Head of the Tax Department at Barnea, was interviewed by Walla regarding the Israeli Tax Authority’s upcoming voluntary disclosure procedure for holders of cryptocurrencies and digital assets.
The new framework is expected to offer immunity from criminal proceedings for taxpayers who come forward—without an anonymous track and without relief from interest or inflation adjustments. The procedure will apply to assets such as Bitcoin, Ethereum, and NFTs, provided the disclosure is made before any investigation is initiated or relevant information reaches the authorities.
July 16, 2025
Share Transfers Between Siblings Are Tax-Exempt - Even Indirect Gifts from Parents
A recent district court ruling broadened the interpretation of the statutory provisions governing exemptions from land appreciation tax and ruled that transfers of shares of a real estate association as a gift between siblings are exempt from capital gains tax even if the shares were not direct gifts from the parents but originated from land received as a gift from them. The court also prescribed several important procedural rules to improve the protection of taxpayers’ rights vis-à-vis the Israel Tax Authority (ITA).
June 30, 2025
Residency in Israel: When and Why Should You Contact the Israel Tax Authority to Obtain a Ruling?
New immigrants and returning residents are entitled, by law, to a tax exemption on income originating outside of Israel for a period of ten years after they become Israeli residents. In particular instances, we recommend applying for a tax ruling from the Israel Tax Authority (ITA), especially when the date of receipt of new immigrant status differs from the date of the actual relocation of center of life to Israel.
June 30, 2025
A Practical Webinar: Revising the Compensation Policy
We are holding a Practical and focused webinar with GCs for GCs, Led by Adv. Hagit Ross and Adv. Omri Oren, partners in the firm's Capital Markets Department. The session will provide clear guidelines for building an effective compensation policy – including best practices for structure, mandatory components, and key considerations from regulatory, legal, and market perspectives that should inform the decision-making process. We will also take a close look at the special grant: when it is appropriate to include one, the rationale and circumstances for doing so, and how to best integrate it into the overall compensation framework – with a particular focus on the Israel Securities Authority’s current position and applicable legal requirements.
June 23, 2025
The Building Was Destroyed – Now What? Urban Renewal and the Rights of Elderly Residents
Following the recent missile attacks from Iran, several old buildings collapsed across the country. Government ministers have announced plans to advance urban renewal initiatives for these affected structures. As the state works to develop a comprehensive strategy, we examined the unique rights of elderly residents in urban renewal projects, since, in many cases, senior citizens are the ones living in these aging buildings. A detailed guide on the subject by Adv. Maya Carmi, an expert in real estate taxation, was published on Ynet.
June 18, 2025
Regulatory Relief Measures in Light of the State of Emergency in Israel
Upon the launch of Operation Rising Lion last Friday, the Minister of Defense declared a special national state of emergency in conformity with the Civil Defense Law, 1951. On Sunday, the government extended the state of emergency until June 30, 2025.
May 15, 2025
The New Institutional Long-Term Rental Track: Strong Potential – Limited Implementation
Launched in 2022, Israel’s new regulatory framework for institutional long-term residential rentals offers significant tax incentives for developers. However, despite its intended benefits, there has been a sharp decline in the number of applications submitted under this track. Adv. Maya Carmi-Lubartovski of our firm provides an in-depth analysis of the program’s structure, the regulatory and practical barriers it faces, and why the model has yet to meet expectations.
May 6, 2025
Significant Tax Benefits for Owners of Long-Term Rental Buildings
Owners of buildings designated for long-term rentals are entitled to significant tax benefits that are being granted in order to encourage the construction of buildings that include residential apartments earmarked for long-term rentals.
April 21, 2025
Can You Cancel a Real Estate Sale Transaction and Obtain a Tax Refund or Is This a New Transaction Subject to Additional Tax?
Israeli tax ruling on the question: The Committee deliberated the North Mall appeal and ruled recently that a “partial cancellation” of a real estate sale transaction is, in fact, a new transaction subject to additional tax
March 24, 2025
“Angels Law” Promotes Investments in Israeli High-Tech Startups
In February 2025, the Israeli Tax Authority published an Income Tax Circular outlining the conditions and principles of the new Angels Law, focusing on the tax benefits granted to investors in early-stage companies that qualify as R&D companies.
March 20, 2025
Tax Conference of the Israel Bar Association: Advs. Harel Perlmutter and Maya Carmi
Advs. Harel Perlmutter and Maya Carmi Lubartovski from our firm participated in the Tax Conference of the Israel Bar Association (Southern District). The conference covered various aspects of taxation, including real estate tax, income tax, and VAT. Harel and Maya participated in a panel on Trust Taxation, discussing the practical application of trust taxation (income tax and real estate tax) and how it is actually carried out in practice
March 20, 2025
High-Income Earners in Israel Prepare to Pay an Additional Surtax
As of 2025, an additional 2% surtax will be imposed specifically on taxable capital income (income from dividends, interest, capital gains from real estate sales and other capital sources) exceeding the maximum of ILS 721,560. This means that taxable capital income exceeding the maximum will now be subject to an inclusive surtax of 5%.
March 18, 2025
Adv. Harel Perlmutter on N12 News: The Largest Exit in Israeli High-Tech History
Adv. Harel Perlmutter, partner and head of our firm's Tax Department, was interviewed yesterday on N12 News Israel's main news edition regarding the largest exit in Israeli high-tech history.
He discussed the tax implications of the deal, stating: "Between 12 and 16 billion NIS will flow into the state's coffers, covering nearly 10 percent of the national deficit with this deal alone
March 9, 2025
Israeli Tax Reform for "Closely Held Companies"
At the end of 2024, the Knesset enacted significant legislative updates within the framework of the Arrangements Law that completely revamp how "closely held companies" are taxed in Israel.
March 2, 2025
Knesset Approves Law Easing Tax Relief Conditions in Corporate Restructuring
A new draft bill for second and third readings aims to ease tax relief conditions in corporate restructuring. Initially part of the 2025 Arrangements Law to support high-tech, it was later split from the original bill.
A new draft bill for second and third readings aims to ease tax relief conditions in corporate restructuring. Initially part of the 2025 Arrangements Law to support high-tech, it was later split from the original bill.
February 26, 2025
Israel Tax Authority Updates Guidelines on Investments Through SAFEs
The Israel Tax Authority (ITA) recently published updated guidelines, regarding tax aspects applying to investments in companies through SAFEs. Such guidelines were published following the previous guidelines published by the ITA during May 2023, and which expired at the end of 2024.
February 6, 2025
Recognition of Undocumented Construction Costs for Capital Gains Tax in Israel
The Israel Tax Authority (ITA) recently published an addendum to the 1987 circular with the goal of minimizing disputes with sellers of residential apartments.
January 30, 2025
January 2025: Legislative Amendments to Real Estate Taxation in Israel
The new year is already heralding significant tax innovations in Israel in general, and in real estate taxation in particular. Following are highlights of the legislative amendments that were approved by January 2025.
December 16, 2024
Lecturing at the Hasoub Angels' Training Program
Advs. Yuval Lazi and Hanna Daher were invited to lecture at the training session for Hasoub Angels, an initiative that supports the Arab entrepreneurial ecosystem through collaborative and structured angel investing. Yuval discussed financing startups, while Hanna covered essential legal and tax considerations for angel investors.