Israel Capital Gains Tax
Detailed capital gains tax rates and rules for Israel in 2026.
Capital gains in Israel are generally taxed at 25% for individuals. If the seller is a 'significant shareholder' (holding 10% or more at any time during the 12 months preceding the sale), the rate increases to 30%. Real capital gains (inflation-adjusted) on assets acquired before 2003 may benefit from a linear calculation providing partial exemption. Corporate capital gains are included in taxable income at the 23% corporate rate. The sale of a primary residence is exempt from capital gains tax.
Short-Term Rate
25%
Long-Term Rate
25%
Standard Rate
25%
Exemptions
- Sale of a primary residence is exempt from capital gains tax (one exemption per 18-month period)
- New immigrants' 10-year exemption on foreign-sourced capital gains
- Gains from the sale of Israeli government bonds by non-residents are generally exempt
- Certain gains realized by venture capital funds on qualifying investments
How Israel Capital Gains compares
Israel’s capital gains tax rate of 25% is the 27th highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Asia’s regional average of 13.9%.
