• Israel: Taxation of Foreign, New and Returning Residents following the Tax Reforms
  • September 30, 2003 | Author: Alon Kaplan
  • Law Firm: Kaplan, Alon, Law Firm - Tel Aviv Office
  • The State of Israel is relatively young and small. On the eve of the country's 55th Independence Day May 2003, Israel's population was recorded at 6.7 million, over eight times the country's population on the eve of the Declaration of Independence in 1948 when the population stood at 806,000. In 1948, Israel's Jewish population was approximately 650,000 and today Israel's Central Bureau of Statistics reports a Jewish population of around 5.5 million. Since its foundation in 1948, the State of Israel has been blessed with massive numbers of immigrants. In the 55 years of its existence, over 3 million people immigrated to Israel from all over the world. In 2002 alone, Israel absorbed over 31,000 immigrants, the majority coming from Russia and Argentina. The Israeli business scene is part of the western commercial world and relies on foreign direct investment. While Israel is not a "tax shelter", the Israeli government makes every effort to encourage foreign investment and trade, inter alia, by providing generous tax exemptions for foreign investors and immigrants.