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🇮🇱 Israel /Economy & Trade

The next wave of aliyah is coming, but Israel is still not ready - opinion

From Jerusalem Post · (1d ago) English Critical tone

Summarized and contextualized by DistantNews.

TLDR

  • Global antisemitism and hatred are driving a new wave of immigration to Israel, with significant increases observed from France, the UK, and North America.
  • Despite the rising influx, Israel remains unprepared to accommodate these newcomers due to insufficient readiness and a tax system that penalizes potential immigrants.
  • The article argues that Israel's current tax policies, particularly the 8% purchase tax on foreign residents, create a substantial financial barrier, discouraging both immigrants and investors and exacerbating the rental market crisis.

As global antisemitism reaches alarming peaks not seen since the Holocaust, Israel is bracing for a significant new wave of immigration, or aliyah. However, the state remains critically unprepared to welcome these newcomers, a paradox highlighted by Ilan Leibovitz in his opinion piece. The current infrastructure and policies are failing to meet the growing demand, despite a clear historical pattern linking periods of global strife with increased Jewish migration to Israel.

Immigration figures already show a marked increase, with immigration from France tripling in a single year, nearly doubling from the UK, and over 13,000 new aliyah files opened in North America. These numbers represent real families seeking refuge and a new home, yet Israel's readiness is lagging. A major impediment identified is the Israeli tax system, which, through distortions and high rates, effectively erodes the intended benefits for immigrants.

Leibovitz points to a stark example: a foreign resident not yet officially immigrated faces an 8% purchase tax on property from the first shekel, a rate identical to that for an Israeli buying a second home. This contrasts sharply with a recognized new immigrant who pays a significantly lower rate. On a NIS 2.5 million apartment, this difference amounts to a staggering NIS 164,000 penalty for those still navigating the bureaucratic process. This policy not only harms individual immigrants but also deters real estate investors, reducing the supply of rental apartments and driving up prices for everyone.

The article criticizes this national paradox where Israel invests heavily in recruiting immigrants abroad, only to penalize them with substantial taxes for minor bureaucratic delays. It suggests a disconnect between the state's left and right hands, with recruitment efforts undermined by financial disincentives. This situation ultimately burdens both new immigrants seeking housing and young Israeli couples struggling with an overheated rental market, questioning the efficacy of a tax policy that fails to protect those it is meant to serve.

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Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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