Living in Israel: three residency concepts, the first year for new immigrants, and French income to declare

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

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.