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Tool
Olim Capital-Gains Tax Calculator
Work out the Israeli capital-gains tax on a sale as an oleh. The pivot is where the asset is: a foreign asset sold inside your 10-year window is exempt, an Israeli asset is taxed in full.
For a new immigrant, the biggest question on any sale is not what you sold but where the asset is. Under section 97(b) of the Income Tax Ordinance, an oleh chadash (and a veteran returning resident) pays zero Israeli capital-gains tax on an asset located outside Israel that is sold within ten years of aliyah, and that relief reaches foreign assets you bought after arriving, not only ones you held before. Israeli-located securities get no such relief and are taxed in full.
This calculator makes the location the headline control. Set whether the asset is foreign or Israeli and how long ago you made aliyah, and it tells you where you stand: fully exempt inside the window, partly taxed by linear apportionment after it, or taxed in full for an Israeli asset. For a foreign exempt sale it also shows what a resident without oleh status would have paid on the same gain, which is the real value of the exemption.
Two cautions carry through. The exemption is Israeli-only, so a US citizen still owes US tax on the same gain and, for an Israeli fund, the PFIC regime as well. Estimate that separately with the PFIC tax-drag estimator. And the rates, the surtax threshold, and the 10-year clock are all point-in-time facts (current as of July 2026) that can change, so treat any figure as a planning sketch.
Your Sale, as an Oleh
rates as of July 2026
The pivotal question is not what you sold, but where the asset is. A new immigrant pays no Israeli capital-gains tax on a foreign asset sold inside a 10-year window from aliyah, even one bought after arriving. Israeli securities get no such relief. Set the location and how long ago you made aliyah to see where you stand.
Where is the asset?
Years since your aliyah (at the time of sale)
6 years
Aliyah ≈ 2020 · window ends 2030
Inside the window
Purchase price
₪200,000
Sale price
₪500,000
Purchase year
Sale year
Your other annual income
₪300,000
Asset type
Holding size
₪0
Your Israeli tax · illustrative
₪66,949
A non-oleh resident would pay
₪66,949
Value of the oleh exemption
Israeli capital-gains tax on this sale
₪0
You sold a foreign asset 6 years after aliyah, inside your 10-year window (based on the aliyah timing you entered). A resident without oleh status would owe about ₪66,949 on the same gain at current (July 2026) rates.
How the number breaks down
Nominal gain (sale minus purchase)
₪300,000
Inflation-adjusted (real) gain, CBS CPI to 2026
₪267,795
Tax base (real gain)
₪267,795
Exempt slice (100%)
₪267,795
Taxable slice (0%)
₪0
Rate applied
25%
Base capital-gains tax
₪0
Surtax (5% above ₪721,560, on the taxable slice only)
₪0
A non-oleh Israeli resident would pay
₪66,949
Your Israeli tax (oleh)
₪0
The assumptions behind this number
The 25% / 30% / 15% rates (July 2026)The ₪721,560 surtax threshold (frozen through 2027)The 5% capital surtax (legislated 2025)The future inflation (CPI) pathThe 10-year exemption rule as it stands today
To show a single number, this calculation assumes the values below stay fixed for the whole period (5 years held). In reality they will change, so treat the result as a ballpark, not a precise forecast. The tax base is your real (CPI-adjusted) gain, so figures depend on an unknown future inflation path; over a long hold, do not read the shekel total as fixed. Whether you are inside the window is our reading of the aliyah timing you entered, not a ruling on your residency.
US citizens and green-card holders: this exemption is Israeli-only
The section 97(b) exemption zeroes your Israeli tax, but a US person is taxed on worldwide income and still owes US tax on the same gain, with no relief from the US-Israel treaty. Worse, if the foreign asset is an Israeli ETF or mutual fund it is almost certainly a PFIC, so the punitive section 1291 regime applies on top. Estimate that separately with the PFIC tax-drag estimator, and note that FBAR reporting is due once your foreign accounts top $10,000 at any point in the year.
The location of the asset is what decides it, not the asset type
Under section 97(b), a new immigrant or veteran returning resident is exempt from Israeli capital-gains tax on assets located outside Israel for ten years from the date of becoming a resident, and for an oleh that reaches foreign assets bought after aliyah, not only ones held before. A share on a foreign exchange, a foreign fund, or foreign property can qualify; an Israeli-listed security does not. So the first question is always where the asset sits.
After the 10-year window: linear apportionment
Sell a foreign asset after the window closes and section 97(b)(3) splits the gain by time. The exempt share is the period from purchase to the end of your window, divided by the whole holding period; the rest is taxed at the normal rate. Buy at year two of residence and sell at year fifteen, for example, and roughly the first eight of your thirteen holding years are exempt. This tool shows that split above.
Exempt gains stay out of the surtax base
The surtax (mas yesef) of 5% applies to income above ₪721,560 (a figure frozen through 2027). Because an exempt foreign gain is not Israeli-taxable at all, it never enters that base, so even a very large exempt sale cannot push your salary or other income over the threshold. Only the taxable slice counts.
Israeli assets get no oleh relief
The exemption is for foreign-located assets. Gains on Israeli-listed shares, Israeli funds, or other Israeli-located securities are taxed in full at the normal rates, whether or not you are an oleh. Oleh status changes the tax on where you invest abroad, not on what you buy on the local market.
The tax exemption survives 2026, the reporting exemption does not
A separate ten-year exemption from filing used to travel with the tax exemption. Amendment 272 (enacted 7 April 2024) abolished that reporting relief for anyone who becomes an Israeli resident on or after 1 January 2026. Your foreign gains can still be tax-exempt, but you must file an annual return and a capital declaration all the same. Arrivals before 2026 keep the older filing relief.
Why this is only an estimate
The 10-year clock, your residency status, and the exact location of each asset are legal questions this tool cannot settle. The rates (25%, 30%, 15%), the ₪721,560 threshold, and the 5% capital surtax are current as of July 2026 and can change. Treat the figures as a planning sketch and confirm your position with the Israel Tax Authority or a cross-border adviser before you act.
- Israel Tax Authority, capital gains and the oleh chadash / returning-resident exemptions (s.97(b)) gov.il ↗ ↩Last verified: 2026-07-10
- IRS, About Form 8621 (Information Return by a Shareholder of a PFIC) irs.gov ↗ ↩Last verified: 2026-07-10
- IRS, Report of Foreign Bank and Financial Accounts (FBAR) irs.gov ↗ ↩Last verified: 2026-07-10
- US-Israel income tax treaty documents irs.gov ↗ ↩Last verified: 2026-07-10
שתפו:
Frequently asked questions
Inside the ten-year window, yes, for Israeli tax. Section 97(b) exempts capital gains on assets located outside Israel for a new immigrant or veteran returning resident, counted from the date you became an Israeli resident, and it covers foreign assets bought after aliyah too. It is an exemption from Israeli tax only. It does nothing for tax owed in another country, such as the United States.
The gain is split by time under section 97(b)(3). The exempt share is the period from when you bought the asset to the end of your ten-year window, divided by the whole holding period; the remaining share is taxed at the normal capital-gains rate. So the exemption does not vanish the day the window closes, it tapers: the longer you hold past the window, the larger the taxable slice.
No. The relief is for foreign-located assets. Gains on Israeli-listed shares, Israeli mutual funds and ETFs, and other Israeli-located securities are taxed in full at the standard rates (25% on the real gain, 30% for a significant shareholder, 15% on the nominal gain of unindexed shekel bonds), whether or not you are an oleh.
No. The surtax (mas yesef) of 5% applies to income above ₪721,560, a figure frozen through 2027. Because an exempt foreign gain is not Israeli-taxable at all, it never enters that base, so even a very large exempt sale cannot drag your salary or other income over the threshold. Only a taxable slice, such as the apportioned part after the window, counts.
The tax exemption is unchanged, but the filing exemption is gone. A separate ten-year reporting relief used to travel with it; Amendment 272, enacted 7 April 2024, abolished that reporting relief for anyone who becomes an Israeli resident on or after 1 January 2026. Your foreign gains can still be tax-exempt, but you must file an annual return and a capital declaration all the same.
Treat it as a planning estimate. The 10-year clock, your residency status, and the exact location of each asset are legal questions the tool cannot settle, and the real gain depends on an unknown future inflation path, so a shekel total on a long hold is not fixed. The rates and the surtax threshold are current as of July 2026 and can change. Confirm your position with the Israel Tax Authority or a cross-border adviser before you act.
Related reading
The ten-year tax benefits for olim
The section 14 and 97(b) exemptions on foreign income and gains, and what they do and do not cover.
The PFIC problem for US olim
Why an ordinary Israeli fund is a US tax trap even when the same gain is exempt in Israel.
A US-domiciled brokerage account as an oleh
Holding compliant US-domiciled funds from Israel, and the account setup that allows it.
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- Capital gains and the oleh chadash / returning-resident exemptions (s.97(b)) — Israel Tax Authority gov.il ↗ ↩
- About Form 8621, Information Return by a Shareholder of a PFIC — Internal Revenue Service irs.gov ↗ ↩
- Report of Foreign Bank and Financial Accounts (FBAR) — Internal Revenue Service irs.gov ↗ ↩
- US-Israel income tax treaty documents — Internal Revenue Service irs.gov ↗ ↩
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