As a Jew, there’s no denying the strong connection you feel to Israel. It’s like a part of your soul is calling out to you. And while you may have been born and raised elsewhere, there’s nothing that can compare to finally being able to call Israel home.
Returning residents have many benefits when it comes to making Aliyah. Not only do you get all the support and resources necessary for a smooth transition, but you also get the chance to re-connect with your roots in a very real and tangible way.
If you’ve been considering making Aliyah, there’s no better time than now. Come see all that Israel has to offer and fall in love with your heritage all over again.
What is a Toshav Chozer and What It Entails?
A “Returning Resident” (Toshav Chozer) is a term used in Israel to refer to an individual who was born in the country or lived there for an extended period, has since relocated to another country, and now wishes to return. The status is distinct from that of a new Oleh Chadash — returning residents have their own set of benefits and regulations, though there is significant overlap. There are several benefits that come with being classified as a Returning Resident in Israel:
- Tax Benefits (Toshav Chozer taxation): Returning Residents are entitled to significant tax benefits, including an exemption from Israeli income tax on foreign income for many years following their return. This mirrors the olim taxation benefit available to new Olim — a 10-year exemption on foreign-sourced income and capital gains, with no requirement to report foreign assets during the exemption period. For the full details, see our Israeli tax system guide.
- Healthcare: Returning Residents are immediately eligible for national health insurance upon return, even before satisfying full residency requirements. This means immediate access to Israel’s four Kupot Cholim — Clalit, Maccabi, Meuhedet, and Leumit. The cost of healthcare in Israel is dramatically lower than in the US or UK, and coverage is comprehensive. See our guide to choosing a Kupat Cholim.
- Housing: Returning Residents can receive housing benefits, including access to public housing and a reduced purchase tax (mas rechisha) rate on their first property purchase in Israel. For a full breakdown of the property buying process, see our guide to buying property in Israel.
- Education: Returning Residents can enroll their children in public schools and receive subsidies for private education.
- Job Opportunities: Returning Residents can benefit from the many job opportunities in Israel, particularly in high-tech industries. The average salary in Israel for senior tech roles is globally competitive, and employment in Israel for English speakers is most robust in high-tech, finance, education, and healthcare. See our guide to finding a job in Israel.
- Cultural and Social Connections: Returning Residents can reconnect with their roots, family, and friends in Israel, and immerse themselves in the unique culture and history of the country.
The Regulations of Toshav Chozer in Israel
The regulations for Toshav Chozer status in Israel are complex. To be accepted as a returnee, it is necessary to prove that you were part of the Israeli community at least one year before any application for residency will be accepted, and you must provide evidence that ties you to that specific community.
Those who meet these requirements may be granted the status of Toshav Chozer and subsequent access to most benefits available to Israeli citizens. Various documents must be obtained for returnees to obtain employment, open an Israeli bank account, obtain a driver’s license, choose a health fund, and find housing in the country.
Government Benefits for Returning Residents in Israel
When returning to Israel as a resident, the Israeli government offers many benefits and financial support through programs such as tax exemptions, subsidized healthcare, pensions, employment rights, and other social services.
You can check these benefits on the Misrad HaKlita’s website.
When dealing with national insurance payments, individuals might also be eligible for special allowances due to their personal circumstances. Furthermore, the Israeli government provides assistance in finding suitable housing along with free professional advice to ensure that everyone is safely settled into their new homes.
Tax Benefits for Toshav Chozer
As a Returning Resident in Israel, you may be eligible for significant tax benefits. The key benefit is a 10-year exemption from Israeli income tax on foreign income following your return. This tax exemption applies to foreign income, capital gains, and passive income such as interest, dividends, and rental income.
To qualify, you must be a Returning Resident who has not been a resident of Israel for at least six years, must have been a resident of Israel for at least four years before your departure, and must not have been considered a resident of Israel for tax purposes during the six years before your return.
If you meet these criteria, you will be eligible for:
- Exemption from Israeli income tax on foreign income for ten years following your return — income from employment, business, or investment abroad will not be subject to Israeli income tax for the first decade.
- Reduced tax rates on certain types of Israeli income for the first two years after your return. After two years, standard Israeli tax rates apply.
- Exemption from reporting foreign assets — bank accounts, securities, and other foreign assets do not need to be reported to Israeli tax authorities for the first ten years after your return.
These tax benefits are subject to change. It is important to consult with a tax professional who specialises in returning resident and Oleh taxation before making financial decisions. See our full guide to the Israeli tax system for Olim and returning residents for more detail.
Steps to Applying as a Returning Resident in Israel
If you’re an Israeli citizen and expat who wishes to come back home, the process of reapplying to be a returning resident is not particularly complex.
Check the Misrad HaKlita’s checklist for more information.
The most important step is to file an application with the Ministry of Interior prior to entering the country so that new residency status can be granted on arrival. You’ll need to provide proof of your identity and Israeli citizenship, a valid passport and plane tickets, documentation related to your service in the IDF (if applicable), and any immigration papers from foreign countries if you have been away for more than two years.
Submit all necessary paperwork about three weeks before leaving for Israel, then follow up when arriving at Ben Gurion Airport. Following these steps properly should help ensure that your return is smooth and stress-free.
Concluding Remarks
Living in Israel can be one of the most rewarding experiences a person can have — especially when you know what you’re doing. As a Toshav Chozer, it’s important to understand the rules and regulations, as well as be aware of which government benefits are available. The combination of the 10-year tax exemption, immediate healthcare access through a Kupat Cholim, housing benefits, and job opportunities in Israel’s thriving economy makes returning to Israel a genuinely compelling practical decision — on top of whatever spiritual and emotional pull you already feel.
Olim Paveway is here to assist you with our expert Melavim service, even if you are a returning citizen! Click here to know more.
All in all, becoming a Toshav Chozer offers great opportunities when moving back to Israel. There’s much more than meets the eye when it comes to making Aliyah again — your future self will thank you later!