Relocation from Israel to spain

Relocation entails many aspects, including family aspects, legal aspects and economic aspects. Alongside these aspects there are taxation aspects in relocation to Spain that must be taken into account before leaving Israel. The need to examine the residency of individuals in the process of relocation or immigration to a foreign country is very significant for Israeli residents staying abroad due to the accompanying taxation consequences. Applying for tax advice from a tax expert in order to regulate the obligation to report and pay tax in Israel is mandatory. One of the key aspects What must be examined when considering a relocation or returning from it is the tax aspect, and in particular - the manner of reporting to the Tax Authority on fruitful income generated during the stay abroad or income that grew from capital assets acquired during the stay abroad while avoiding double tax and double social security payment accidents.

The work plan with the tax authority depends to a large extent on the subjective intentions of the relocater. If a decision has been made to relocate the life center for several long years or to emigrate abroad, it is necessary to start preparing for the severance of residency from Israel for both tax and social security purposes, otherwise there is a possibility of income tax exposure and doubling the payment of social security fees. Staying abroad for more than 183 days constitutes possession In Israeli law, tax residency can be cut off, but it is not enough to complete the cut-off process. When a taxpayer decides to sever residency from Israel, he is apparently exempt from income tax on his income from abroad starting from the date of severance of residency, but the Tax Authority does not easily recognize an immediate severance, and therefore an income tax ordinance was amended that retroactively establishes from the 2016 tax year, an expanded reporting obligation for individuals who go on vacation occur.

more details