Israel wants to bring 15,000 expats back every year
Posted on 21. May, 2010 by Buy-It In Israel Staff in Israel Real Estate
Israeli Prime Minister Binyamin Netanyahu this week announced a number of new benefits for returning Israeli residents which will put them on a similar footing with benefits received by new immigrants.
The Israeli Immigration Ministry said that the approved benefits seek to bring back 15,000 Israeli citizens per year. Currently an estimated 750,000 Israelis live abroad. As a result of the global economic crisis there is a recent trend of expatriates showing an interest in coming back to live in Israel.
In the past, returning residents and new immigrants left the country mainly because they felt they missed job and other opportunities. However, over the past five years, the Israeli economy has flourished growing at an average of over 5 percent opening an array of opportunities, which can compete with opportunities that are available elsewhere. Last year, 10,900 Israelis returned to Israel. The majority of returning Israelis are of working age, and their income is roughly 30 percent higher than the national average.
Netanyahu can speak from own experience as he resided much of his childhood in the United States and moved back twice for academic studies and to serve as Israel’s ambassador to the United Nations.
The plan to accelerate the return of Israeli residents includes tax breaks, education benefits, medical assistance and national insurance benefits.
Residents returning after five or six years will be eligible for the same income tax credit points as new immigrants. In terms of customs benefits, returnees who come back six years after leaving the country will get benefits equal to those given new immigrants, including tax breaks on the purchase of a vehicle.
Health insurance refunds will also be made to returning residents of which half of the sum will be refunded immediately and after one year in the country, the remainder of the fee will be refunded.
To help returning residents with employment and to encourage enterprise initiatives, money from the Israel Small Business Fund will be allocated for the returnees’ benefit. The money will be used provide returning residents with professional training and retraining and employment guidance from the Israeli Ministry of Industry, Trade and Labor.
Tax benefits received by new immigrants for buying a home in Israel have not yet been included in the new benefit package to which returning residents are entitled to.
© Copyright 2010.
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