Updated
Updated · i24NEWS · Aug 6
Top 10% of Israeli Earners Lift Emigration Rate Above 0.5%, Costing 1.2 Billion Shekels
Updated
Updated · i24NEWS · Aug 6

Top 10% of Israeli Earners Lift Emigration Rate Above 0.5%, Costing 1.2 Billion Shekels

1 articles · Updated · i24NEWS · Aug 6

Summary

  • 1.2 billion shekels in annual tax revenue is now at risk as departures by Israel’s highest earners accelerated in 2023 and 2024, according to a new Israel Tax Authority study.
  • The top 10% earners’ emigration rate rose from 0.3% before the pandemic to more than 0.5% in 2024—about an 80% jump—and that group accounts for 67% of emigrant income and 86% of the tax loss.
  • High-tech workers drove much of the shift, with departures up about 150%, while healthcare exits more than doubled; the 40-50 age group also climbed from 13% to 20% of adult emigrants over the past decade.
  • Average emigrant income rose about 60% since 2020 to roughly 200,000 shekels in 2024, around 50% above the national average, showing the exodus is increasingly concentrated among peak earners.
  • Researchers said the trend may reflect pandemic labor-market changes or Israel’s political and security turmoil since 2023, and warned the annual tax hit could reach 3.5 billion shekels within five years.

Insights

As Israel's top earners flee, will the massive tax deficit force the government to trap its remaining wealth?
Can unprecedented tax breaks for new immigrants truly replace the brilliant medical and tech minds abandoning the nation?