Israel Cryptocurrency Tax
Detailed cryptocurrency tax rates and rules for Israel in 2026.
Israel treats cryptocurrency as a taxable asset (property) rather than currency. Capital gains from the sale or exchange of cryptocurrency are subject to 25% capital gains tax for individuals (30% for significant holders). The Israel Tax Authority issued a circular in 2018 confirming this treatment. Mining income and staking rewards are treated as ordinary business income subject to progressive income tax rates and potentially VAT.
Crypto Tax Status
Taxed
Treatment
Property / Capital Asset
Additional Notes
Cryptocurrency traders engaging in frequent trading may be classified as conducting a business, subjecting their profits to ordinary income tax rates up to 50% instead of the 25% capital gains rate. Israel has been relatively proactive in providing tax guidance for crypto, and the ITA has conducted data-sharing initiatives with crypto exchanges. Token issuances (ICOs/IEOs) by Israeli companies may have specific tax implications for both issuers and investors.
How Israel Crypto Tax compares
Israel taxes cryptocurrency gains. 68 of 203 countries TaxAtlas tracks take the same approach, which is useful context when weighing where to live, invest, or incorporate.
