Official sources distinguish three definitions of residency for individuals living in Israel: that of the Franco-Israeli convention, that of Israeli national insurance, based on the "center of life," and that of the Israeli Tax Authority, which offers a "year of adjustment" to new immigrants and returning residents. The criteria for Israeli tax residency, the income tax scale, and the inheritance and wealth tax rates are not detailed here; these fall under the Israeli Income Tax Ordinance, which should be verified with the Israeli Tax Authority.
Three concepts of residence, three administrations
| Notion | Source | What she said |
|---|---|---|
| Resident as defined by the convention (Article 4) | Consolidated text of the agreement, impots.gouv.fr | A resident is a person subject to tax by virtue of their domicile, residence, or place of management; in the case of dual residence: permanent home, center of vital interests, habitual residence, nationality, then agreement of the authorities |
| Resident as defined by national insurance | Israeli National Insurance Institute | A person whose "center of life and the majority of their ties" are in Israel; objective test and subjective test |
| Resident for Israeli tax purposes | Israeli Tax Authority | The page on the acclimatization year refers to "the income tax directive" without defining residence |
Our page on the convention details Article 4 and the withholding rates. National insurance coverage is not the same as tax residency: the Institute's page focuses on social security and health.
National insurance: the center of life
The Israeli National Insurance Institute states that the National Insurance Law does not define residency and that it relies on case law. The objective test examines the place of residence, family, work, and assets; the subjective test asks where, from the individual's perspective, the center of their life is located. Legal residency and qualifying status are also required: Israeli citizenship, a permanent residence permit, or certain visa categories (A/1, A/2, A/4, A/5).
A resident who moves abroad remains registered for the first five years, retaining their rights to benefits and public health insurance. Our page on returning to France details this affiliation. Regarding contributions, the Cleiss (2025 edition) indicates that every Israeli resident over the age of 18 contributes and that health insurance is provided by one of four funds: Clalit, Leumit, Maccabi, or Meuhedet. The rates as of January 1, 2025, are listed on our page about leaving for Israel.
The first year: the acclimatization year
The Tax Authority's website (updated 12/22/2025) describes an option for new immigrants and returning residents, as defined by the Authority: to consider their first year as an "acclimatization year" for income tax purposes. The application is made online, with a copy of the identity card, "within 90 days of the date of obtaining status," and only once. At the end of the first year, the person remaining in Israel receives resident status "in accordance with the income tax directive." The website does not define "resident.".
A memo from the Economic Department of the French Embassy in Tel Aviv, dated May 6, 2022, describes a broader tax regime. It states that individuals making aliyah (immigrating to Israel) are exempt from taxation "for the first year after their return or arrival in the country." The memo further indicates that Amendment No. 168 to the ordinance exempts a new immigrant or a returning resident after at least ten years abroad from taxation on foreign income earned in the ten years preceding their arrival. This memo refers to 2021 data; the current regulations can be found on the Tax Authority's website.
Annual declaration: forms from the Tax Authority
The "2023 Individual Annual Report" page (updated 09/12/2024) lists, among other things, Form 1348 ("Declaration of Residency" for those who declare they are not residents of Israel), Form 1324 ("Foreign Income"), Form 1327 ("Trust Report"), Form 1507 ("Returning Resident Credit Points"), and Form 1130 ("Adjustment Year"). The deadlines on this page, May 31, 2024 for paper filing and June 30, 2024 online, refer to the 2023 report; current deadlines can be found on the Authority's website.
France-Israel Social Security Agreement
According to the Cleiss (French Centre for Social Security Information), the agreement "does not provide for coordination in the areas of health insurance or disability insurance," and unemployment insurance is not included in its scope. For old age, workers choose between two prorated pensions and two national pensions, with benefits payable abroad. In principle, an employee is subject to the legislation of the country where they work, with exceptions notably for posted workers.
French income of a resident of Israel
The French tax authority's information sheet "You reside in Israel" lists the French-source income that must be declared in France: salaries from private employment in France (with an exception for assignments totaling 183 days or less), state and public sector salaries and pensions (with an exception based on nationality), income from liberal professions practiced from an office in France or for at least 183 days in France, industrial or commercial activities carried out by a company established in France, rents and capital gains from properties located in France, and dividends and royalties paid by a French company. The sheet specifies that this list is not exhaustive and recommends contacting the Israeli tax authorities for local tax obligations.
A French non-resident for tax purposes is taxed only on their French-source income, subject to tax treaties, with a minimum rate of 20% up to €29,579 and then 30% for income received in 2025 (economie.gouv.fr, 24/04/2026). Dividends are subject to a withholding tax of 12.80% as of January 1, 2026, subject to the tax treaty.
What this page does not cover
It does not specify the criteria for Israeli tax residency, the tax brackets, the rates on dividends and capital gains, wealth or inheritance tax, local savings, or visa or residency permit requirements. The tax brackets and withholdings published without a date by an Israeli investment portal are not included. These details can be found in the Income Tax Ordinance and on the website of the Israeli Tax Authority.
What changes depending on your situation
- Your arrival date and status: new immigrant, returning resident, or other.
- Your situation with regard to the three concepts of residence.
- The nature of your French-source income: salaries, pensions, rents, dividends.
- Your departure from France: tax residence, exit tax, declarations.
- Your health and retirement coverage on both sides.
The rule depends on your situation. No results are guaranteed.
Frequently asked questions
What is the acclimatization year in Israel?
New immigrants and returning residents have the option to consider their first year as an acclimatization year for income tax purposes. According to the tax authority's website, the request must be made within 90 days of obtaining status and only once.
How does the Israeli national insurance define a resident?
Based on the center of life and the majority of ties in Israel, with an objective and a subjective test, and a qualifying residency status. This is not tax residency.
Are the French incomes of an Israeli resident taxed in France?
The French tax authorities' information sheet lists the French-source income that must be declared in France, and a non-resident is only taxed on their French-source income, subject to tax treaties. See our page on the Franco-Israeli tax treaty.
Take stock before you settle in
Balmont Conseil, a firm based in Lyon for nearly 14 years, advises executives and families whose assets or business activities have ties to France and other countries. To discuss your situation, please schedule an appointment.
Alexis SagnierFinancial and real estate investment advisor, insurance broker, AMF certified
Founder of Balmont Conseil, Lyon (ORIAS 13003497)
Read also
- Leaving France for Israel: exit tax and convention
- Returning to France from Israel: procedures and taxes
- France-Israel Tax Treaty: Key Rates and Rules
- Leaving France: exit tax, tax residence, procedures
- French tax residence: the 3 criteria (art. 4 B)
- Dividends paid to a non-resident: withholding tax of 12.8% %
Official sources
- impots.gouv.fr, France-Israel convention, consolidated version: https://www.impots.gouv.fr/sites/default/files/media/10_conventions/israel/israel_convention_cml.pdf
- impots.gouv.fr, information sheet "You reside in Israel": https://www.impots.gouv.fr/sites/default/files/media/1_metier/5_international/EV_part/4_non_resident_interets_france/410_declaration_en_france/fiches_cfi/fiche_cfi_israel.pdf
- Israeli tax authority, request for a year of acclimatization: https://www.gov.il/en/service/application_for_year_of_acclimatization
- Israeli Tax Authority, 2023 Annual Report for Individuals: https://www.gov.il/en/service/reporting-and-payment-2023-annual-tax-report-for-individuals
- The Israeli National Insurance Institute, which is an Israeli resident: https://www.btl.gov.il/English%20Homepage/Insurance/An%20Insured%20Person%20Residing%20Abroad/Pages/Whois.aspx
- Cleiss, France-Israel social security agreement: https://www.cleiss.fr/docs/textes/conv_israel.html
- Cleiss, the social security system in Israel (2025): https://www.cleiss.fr/docs/regimes/regime_israel.html
- DG Treasury, Tel Aviv Economic Service, "The tax landscape of Israel in 2021" (May 6, 2022): https://www.tresor.economie.gouv.fr/Articles/f36e40fc-3bdd-4a64-bbd6-a2731a4f8410/files/ee54184a-9865-4d8e-a69b-8cfabbcd6f52
- economie.gouv.fr, rules for residents abroad: https://www.economie.gouv.fr/particuliers/impots-et-fiscalite/gerer-mon-impot-sur-le-revenu/impot-quelles-regles-pour-les-residents-letranger
- impots.gouv.fr, dividends from French sources received by a non-resident: https://www.impots.gouv.fr/international-particulier/mes-dividendes