Israel's Wealthiest Citizens Are Leaving - Raising Concerns Over Long-Term Tax Revenue

 Israel is facing a growing fiscal challenge as an increasing number of high-income earners emigrate, reducing the country's future tax base, according to a new study published by the Israel Tax Authority.

The research, conducted by Dr. Ariel Greisas and Nili Ben Tovim, examined Israelis who emigrated between 2015 and 2024 using income tax data from the year prior to their departure. The analysis excludes National Insurance and health insurance contributions, meaning the actual fiscal impact is likely to be even greater.

The findings show that emigration has become increasingly concentrated among affluent Israelis. While emigrants once earned incomes close to the national average, their average income is now roughly 50% higher than that of the typical Israeli taxpayer.

Tax contributions from emigrants have tripled

The annual income tax paid by Israelis before emigrating remained relatively stable at between NIS 400 million and NIS 600 million from 2015 through 2021. Since then, however, the figures have risen sharply.

According to the study, the taxes paid by emigrants in the year before leaving reached approximately NIS 1.2 billion in both 2023 and 2024—about three times the level recorded in previous years.

Although some emigrants may continue to be treated as Israeli tax residents for a period after relocating abroad, the report warns that the long-term erosion of the tax base could become increasingly significant.

Working-age professionals  are most of the losses

The largest increase in lost tax revenue comes from Israelis aged 30 to 50—the country's core working-age population and its highest taxpayers.

The study also highlights a sharp rise in departures from high-paying industries. The number of emigrants working in the technology and healthcare sectors doubled or nearly tripled during the period under review, while emigration from lower-paying sectors, including education, remained broadly unchanged.

Researchers note that these trends suggest Israel is losing a growing share of highly productive workers whose contribution to economic growth extends well beyond the taxes they pay.

Capital transfers abroad also on the rise

The Tax Authority identified another emerging trend: an increase in declarations of large capital transfers overseas.

The number of taxpayers reporting transfers exceeding NIS 500,000 doubled during 2023 and 2024. While the authority did not disclose the total amount transferred, it said the increase warrants continued monitoring as an indicator of shifting financial activity.

Data show emigration reached record levels

Separate figures released by Israel's Central Bureau of Statistics (CBS) indicate that emigration has accelerated markedly in recent years.

The number of Israeli citizens leaving the country averaged about 40,000 annually between 2010 and 2022 before rising to approximately 60,000 in 2023 and nearly 83,000 in 2024. During the 12 months ending in October 2024, the figure reached 85,300.

Updated data through September 2025 suggest that emigration has remained historically high, with roughly 56,000 Israelis leaving during the first nine months of the year and nearly 80,000 emigrating over the preceding 12 months.

More emigrants are highly educated

The CBS also found that the educational profile of emigrants has shifted upward.

About 60% of Israelis who emigrated in 2023 held at least a bachelor's degree, compared with around 55% in 2022. The data reinforce concerns that a growing proportion of emigrants come from highly skilled, higher-income segments of the workforce.

Taken together, the Tax Authority and CBS findings point to a structural change in Israel's emigration patterns, with a rising share of highly educated professionals and affluent taxpayers choosing to relocate abroad—a trend that could have lasting implications for government revenues, labor supply and long-term economic growth.