Income tax exemption for international residents in Israel: Invitation to invest in the cryptom market

Income tax exemption for international residents in Israel: Invitation to invest in the cryptom market

Israeli international residents could soon benefit from an income tax exemption when buying cryptocurrencies. A new program for the management of tax breaks for the Israeli crypto market has passed a first review in the Knesset, the Israeli parliament.

A proposal was published on Wednesday, which should protect international residents from tax increases when buying electronic currencies and a reduction in income tax for cryptocurrencies from 25% to around 15%

The costs for this program were financed by Dan Illouz, a MP of the Knesset, and are fully supported by the Israeli government. According to Prime Minister Benjamin Netanyahu, it is part of a more comprehensive financial strategy to lure investors and companies into the country.

The proposal emphasizes that although Israeli companies have potential in the cryptocurrency industry, the regulation in Israel does not keep up with the digital currency market. It is therefore necessary to make legal changes to reduce the freedom of regulation.

The costs would offer international residents the same tax benefits as the established organizations on the Israeli cryptom market. Dan Illouz explained that workers on the cryptom market had previously had to pay double income tax compared to those on the conventional market. International investors also did not have the same advantages as those who make investments in the traditional market.

The aim of the control change is to stabilize the situation and to eliminate the tax distortions. The costs are better if they are used as a "electronic currency unit" and offer security and trust.

This measure signals that Israel actually accepts cryptocurrencies. The Israeli central bank, the Bank of Israel, published guidelines for the regulation of stablecoins in February. The Tel Aviv Stock Exchange also plans to check a blockchain-based system for the publication of electronic bonds.

The largest bank of Israel, the Bank Leumi, announced that it will be the first Israeli bank to enable the exchange of cryptocurrency. She also merged with Paxos to enable her customers to buy, store and trade with cryptocurrencies.

It is important to note that this article only serves for educational purposes and does not represent legal, tax, financial or other advice.