Quick Comparison: Veteran vs Regular
| Criteria | Veteran (Vatik) | Regular |
|---|---|---|
| Time Abroad Required | 10+ years | 6-10 years |
| Tax Exemption Period | 10 years | 5 years |
| Foreign Income Exemption | Full (like Olim) | Partial |
| Capital Gains Exemption | Full 10 years | 5 years |
| Status Equivalent | Same as New Olim | Limited benefits |
Veteran Returning Resident (Toshav Chozer Vatik)
Requirements
- Israeli citizen or resident who lived abroad for 10+ consecutive years
- Center of life was outside Israel during this period
- Short visits to Israel don't break the count (under 183 days/year average)
Key Benefits
10-Year Tax Exemption
On all foreign-sourced income
Capital Gains Exemption
On foreign assets for 10 years
Pension Exemption
Foreign pension tax-free during exemption
No Reporting (Pre-2026)
Note: Amendment 272 changes this in 2026
Regular Returning Resident (Toshav Chozer Ragil)
Requirements
- Israeli citizen or resident who lived abroad for 6-10 years
- Center of life was outside Israel during this period
- Less than 6 years = no special status
Benefits (More Limited)
5-Year Tax Exemption
On select foreign income types
Partial Capital Gains
On assets acquired before return
Pension Benefits
5-year exemption on foreign pension
More Restrictions
Less comprehensive than Veteran status
Real Estate & Mortgages for Returning Residents
One of the most important aspects for returning residents is getting a mortgage in Israel. Both Veteran and Regular status offer some advantages:
Purchase Tax Benefits
- Potential reduced purchase tax rates
- First apartment benefits may apply
- Exemptions on certain transactions
Mortgage Considerations
- Foreign income can be used for qualification
- No Israeli credit history often not a barrier
- Documentation requirements may be higher
Frequently Asked Questions
Returning to Israel? Let Us Help
RealFix Finance is a One Stop Shop with 5 CPAs and 7 attorneys specializing in returning resident taxation. We have been helping Israelis navigate homecoming since 1999.
- 100% client-side representation
- Payment based on success only
- Expert mortgage assistance for returning residents
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Legal Disclaimer
The information and simulations presented on this website are for illustrative purposes only and do not constitute a binding offer for credit or financial advice. Credit Approval: Subject to final underwriting, clean credit data (positive credit score), clean banking history, and meeting the threshold requirements of the financing institutions. Interest Rates: The interest rates displayed are estimates only, based on average market data, and may change at any time according to the client's individual risk profile and economic conditions (Bank of Israel interest rate changes / CPI). No Commitment: RealFix does not guarantee loan approval or the terms displayed in the calculator. E&OE.