Israel: “Waived taxes for 10 years!… (These may not be fully waived; maybe they’re just reduced. …).” Reduced is a better way to say it. Various taxes, including income and property tax, are reduced.
The 10-year period you are thinking of is on income generated investments. from outside Israel. If you are American, however, that does not much help as the US government will then grab the tax (as there is then no “double taxation” issue for those 10 years).
No double taxation issue then would be quite the detriment to the appeal of Israel from a taxation perspective. Do you happen to have a source or more info about that?
Thanks for noting this information with more granularity than I provided / had.
If I’m understanding this correctly, Cole V. Commissioner argued this and the courts found that the expatriate had to pay taxes:
As a result of moving to Israel, petitioner qualifies for a 10-year Israeli “tax holiday”, which exempts him from Israeli tax on non-Israeli-source capital gain income… we hold that petitioner must recognize total long-term capital gain of $114,947 attributable to his sale of Neogen stock in 2010
I am not sure this I am interpreting this correctly, and would love to hear input from others.
Edit: I spoke to an Israeli tax lawyer who confirmed my understanding, though he said to double check with a US lawyer to be sure.
Israel: “Waived taxes for 10 years!… (These may not be fully waived; maybe they’re just reduced. …).” Reduced is a better way to say it. Various taxes, including income and property tax, are reduced.
The 10-year period you are thinking of is on income generated investments. from outside Israel. If you are American, however, that does not much help as the US government will then grab the tax (as there is then no “double taxation” issue for those 10 years).
No double taxation issue then would be quite the detriment to the appeal of Israel from a taxation perspective. Do you happen to have a source or more info about that?
Thanks for noting this information with more granularity than I provided / had.
If I’m understanding this correctly, Cole V. Commissioner argued this and the courts found that the expatriate had to pay taxes:
I am not sure this I am interpreting this correctly, and would love to hear input from others.
Edit: I spoke to an Israeli tax lawyer who confirmed my understanding, though he said to double check with a US lawyer to be sure.