As of Jan. 1st 2026, each and every first time resident – new Oleh or Senior Returning Resident, would be obligated to declare on his/her foreign incomes and foreign assets.

The Israeli Knesset approved recently correction num. 272 to the Israeli Tax Ordinance that includes the drastic change as mentioned.

Up until now, these 2 unique groups of tax payers, were exempt both from paying taxes on foreign incomes and from reporting on them.

The exemption of taxation would still apply (for 10 years from becoming IL residents as before) but the exemption of reporting will be canceled

for those who will come to Israel as January 1st. 2026.

The new mandatory reporting applies for both passive (interest, dividend, rent, royalties, capital gain etc.) and active (wages, business incomes, pension etc.) .

Here are additional changes there were approved in correction 272:

New Reporting Requirement for Trustees:

• A trustee, as defined in the ITO, will be required to file a notification with the Tax Authority on the creation of a trust and on any change in the ownership of the trust’s assets.
• An Israeli trustee who is required to file an annual report will attach to that report a report on the beneficial owners of the trust’s assets.

Reporting Requirement on Controlling Shareholders of Companies:

• Companies will be required to report details of their controlling shareholders in their annual report.
• The ITA will be authorized to demand a report in detail from a legal entity whose business and management are controlled by a new Oleh or a Senior Returning Resident.
• This reporting requirement will apply from the 2025 tax year.

Transfer of Information to Foreign Tax Authorities:

• The Israel Tax Authority will be authorized to receive information from financial institutions on account holders, including details of the controlling shareholders, for the purpose of exchanging information with foreign tax authorities.
• This information will be transferred only in accordance with an international agreement and a written request from the tax authority in the foreign country.
• An amendment to the Anti-Money Laundering Law will allow financial institutions to transfer similar information to the Israel Tax Authority for the purpose of transferring it to a foreign tax authority.

Effective Date of the Amendments:

• The amendments regarding the reporting requirement for new Olim and Veteren Returning Residents will apply from January 1, 2026.
• The amendments regarding the reporting requirement on controlling shareholders of companies will apply from the 2025 tax year.
• Trusts that are not required to report under Section 131 of the ITO, that existed before April 7, 2024, will be required to file a notification of the details of their controlling shareholders and their tax residency within 120 days of January 1, 2026.

It is extrmely important to plan the move accordingly by receiving a proffesionl advise regarding the tax aspect.