# Israeli Relocation Abroad

> End-to-end guide for Israelis relocating abroad for work (רילוקיישן), covering before, during, and after the move plus return planning. Use when user asks about Israeli relocation, moving abroad from Israel, yom nituk toshavut, Israeli tax residency while abroad, Bituach Leumi from abroad, kupat cholim during relocation, toshav chozer (returning resident) benefits, vehicle import on return, or apostille for Israeli documents. Covers Israeli tax residency tests (Form 1348), Bituach Leumi continuity, kupat cholim, pension funds and keren hishtalmut, Israeli apartment rental vs sale, apostille via the Foreign Ministry, and the 10-year tax exemption for toshav chozer vatik. Prevents costly mistakes like losing kupat cholim on return, paying double Bituach Leumi, or missing returning-resident benefits. Do NOT use for aliyah to Israel (use israeli-aliyah-navigator), tourist visas, binding tax advice, or destination-country immigration like H-1B or UK Skilled Worker visas.

- Skill: `skills-il/israeli-relocation-abroad` (Agent Skill, multi-file: 14 files)
- Install (CLI): `npx skillmds@latest add skills-il/israeli-relocation-abroad`
- Raw SKILL.md: https://api.skillmd.com/api/skills/skills-il/israeli-relocation-abroad/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- License: MIT
- Author: skills-il (https://skillmd.com/u/skills-il)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/skills-il/israeli-relocation-abroad

---


# Israeli Relocation Abroad Navigator

## Legal notice

This is a free information tool operated by an AI model. It explains the tax rules and helps you organise your own figures. All of its outputs are produced automatically by an AI model, with no involvement, review, or approval by a tax adviser or accountant. The output is not a tax opinion, not a return prepared by a licensed representative, and not professional advice, but a general calculation and explanation only: it does not examine the full extent of your income or your complete documents. An AI model may err, omit data, or present a wrong conclusion.

Any form or text this tool produces is an automatic draft for your personal preparation only, and is not a filed return. Responsibility for reporting and for paying the tax is yours, the binding computation is the Tax Authority's, and representation before the Tax Authority is reserved to those permitted by law. This tool is not a substitute for advice that takes account of the particular circumstances and needs of each person. Consult a tax adviser or accountant before filing or paying. All use of its output is the user's sole responsibility.


## Problem

Israelis relocating abroad for work (רילוקיישן) face a tangled web of Israeli regulations that follow them across borders: Bituach Leumi contributions, kupat cholim continuity, tax residency status, pension funds, and apartment rental tax. Most relocation packages ignore the Israeli side entirely, and decisions made (or missed) in the first 90 days often cost thousands of shekels and trigger a waiting period on health coverage when the family eventually returns. This skill gives a personalized, phased checklist so nothing falls through the cracks.

## Instructions

### Step 1: Assess the Relocation Situation

Before giving guidance, gather the facts that drive every downstream recommendation.

| Factor | Why it matters |
|--------|----------------|
| Stage (pre-move, just moved, living abroad X years, planning return) | Determines which phase of the checklist applies |
| Destination country | Treaty vs non-treaty affects Bituach Leumi exemption and double taxation |
| Family status and ages | Affects apartment rental strategy and school record apostille needs |
| Intended duration (2 years, 5 years, permanent) | Drives whether to stay a tax resident or cut residency (nituk toshavut) |
| Employer type (Israeli employer sending you, foreign employer hiring you, self-employed) | Determines tax residency, payroll, and pension treatment |
| Owned apartment in Israel | Triggers rental vs sell decision and Israeli landlord tax choice |

Once you have those, generate a personalized phased plan:

```bash
python scripts/relocation-checklist.py --stage pre_move --destination usa --duration 4y --owns_apartment yes
```

### Step 2: Tax Residency Determination

This is the most consequential decision. Israeli tax residency is tested by **days** and by **center of life**, independently of citizenship.

**Days test (presumption of Israeli residency):**
- 183+ days in Israel in the tax year, OR
- 30+ days in Israel in the tax year AND 425+ days total over that year plus the two preceding years

**Center of life test:** Even if you fail the days test one way or the other, the Tax Authority looks at where your family, home, work, social ties, and economic interests are. This can override the days count in either direction.

**Form 1348 (Residency Declaration):** If you meet the days test but claim your center of life is abroad, you must file Form 1348 with your annual return. The Tax Authority decides whether to accept the claim. Getting a "ruling" (pre-approved status) from the Tax Authority avoids surprises later.

**Key choices:**

| Strategy | When it fits | Implication |
|----------|--------------|-------------|
| Stay an Israeli tax resident | Short relocation (<3 years), plan to return, Israeli employer | Report worldwide income in Israel, claim foreign tax credit |
| Cut residency (nituk toshavut) | Long or open-ended move, foreign employer, family moves with you | No Israeli tax on foreign income, but lose toshav chozer benefits unless you stay out 6+ years (toshav chozer) or 10+ years (toshav chozer vatik) |

Run `scripts/residency-check.py` to walk through the decision with the user's specifics. The script is a guidance tool, not a legal opinion -- always recommend a tax advisor (yo'etz mas) for the final call.

**Exit tax (mas yetzia, Section 100A of the Income Tax Ordinance):** Cutting Israeli tax residency is not free. Section 100A treats all of a person's worldwide assets as if they were sold one day before the day residency was severed. The unrealized capital gain (based on the asset's fair market value on that day) is subject to capital gains tax. This applies to securities, shares in private companies, real estate abroad, and similar assets, not to assets that remain Israeli-situated.

**Rate granularity (different rates for different asset types):**

| Asset class | Section 100A rate | Notes |
|---|---|---|
| Listed securities, regular capital gains | 25% | Standard individual capital-gains rate |
| Shares of a substantial shareholder (10%+ ownership) | 30% | Higher rate for "ba'al menaya mahuti" |
| Company-held assets (deemed sale by a controlled company) | 23% (corporate rate) | Through the company, not personally |
| Some asset classes treated as ordinary income | Marginal rate (up to 50%) | Edge cases (working interest in foreign partnership, certain options) |

Founder holding 10%+ of a startup: 30% rate, not 25%. Mis-pricing by 5 points on a large equity position is a common expensive surprise.

The default option is to defer payment until actual sale, with Israel taxing the Israeli pro-rata portion of the gain. Alternatively pay at severance on deemed-sale value. Either way, model with a tax advisor before severing residency.

**Form 1348 procedure:** filed **with the annual return** (Form 1301) for the tax year of severance, NOT separately and NOT at departure. Filing deadline is the annual return deadline. The Pkid Shuma reviews and may accept, reject, or request more documentation.

Attach: foreign lease/deed, foreign work contract, family relocation evidence (kids' foreign school enrollment, spouse's foreign employer letter), foreign tax filings already submitted, BL residency questionnaire if requested.

If rejected: days-test presumption stands, residency continues for that year. Time the filing carefully with a CPA, or request a pre-approved Tax Authority "ruling" that binds the Authority up-front.

### Step 2a: Military Reserve Duty (Miluim) Before Leaving

A relocator of reserve age (anyone with a reserve obligation) must settle their status with the IDF before flying out. Leaving the country with an open reserve obligation and without arranging it first risks being recorded as a deserter (arik), with criminal exposure on return. This is especially salient since October 2023, when large-scale Tzav 8 emergency call-ups became routine.

- Contact your reserve unit in advance to find out whether reserve service is expected during your planned time abroad
- For a personal-reasons relocation, file Form 58 (request to defer, shorten, or be released from active reserve service). The form can be submitted up to 8 days before the start of a reserve stint, but for a relocation it should be filed as early as possible
- For a work-related move, the request goes through the reserve coordination committee (Valtam) rather than Form 58
- Keep proof of flight tickets and the relocation. A soldier who can show tickets were bought before a call-up order was issued, and whose deferral was rejected, can appeal to a commander at the rank of lieutenant colonel or above
- Do this before leaving, not retroactively from abroad

### Step 3: Pre-Move Financial Checklist

Two to three months before the flight is the right window for most of this.

**Bituach Leumi (National Insurance) and health insurance:**

An Israeli who stays a tax resident must keep paying Bituach Leumi and health insurance (dmei briut) while abroad, even with zero income. This is how you keep continuous kupat cholim coverage and avoid a waiting period on return.

- Contribution rates on income reported abroad are set and updated by BL. Confirm at *6050
- **Bituach Leumi minimums, effective 01.01.2026:**
  - Non-treaty country, no income: ₪266/month combined (NI + health)
  - Treaty country (USA, UK, most of EU, Canada), paying social security locally: ₪123/month (health only)
- Open a standing order (horaat keva) before leaving so payments don't lapse
- In countries with a bilateral social security agreement (USA, UK, most of EU, Canada), if you pay social security there on employment income, you are exempt from Israeli NI on that income and pay only the ₪123/month Israeli health insurance

If you formally cut residency (nituk toshavut), you stop paying Bituach Leumi but you also lose kupat cholim and restart a waiting period when you return (see Step 6).

**What stops and what continues while abroad:** Child allowance (kitzvat yeladim) stops once the family is no longer considered resident in Israel, since eligibility for most Bituach Leumi allowances depends on residency. If you stay a tax resident and keep paying contributions, you remain insured for the long-term branches (old-age pension, survivors, disability accrual) and keep kupat cholim active. Work-injury and unemployment branches generally do not cover work performed abroad. Confirm the specific branches with Bituach Leumi before leaving.

**Kupat cholim continuity:** The practical rule: keep paying Bituach Leumi = your kupat cholim membership stays active and you can resume care on any visit or return. Do not "cancel" your kupat cholim. Notify them of the foreign address so correspondence still reaches you.

**Pension funds and keren hishtalmut:**

| Instrument | Options while abroad | What most people do |
|-----------|---------------------|---------------------|
| Comprehensive pension fund (pensia mekifa) | Freeze (no contributions), self-pay at minimum, withdraw (heavy tax penalty) | Freeze the fund. Contributions stop, accumulated balance keeps investing |
| Keren hishtalmut | Continue via new Israeli employer contribution (rare abroad), freeze, or withdraw after 6 years | Freeze. Early withdrawal costs 35% tax |
| Kupat gemel / finance | Freeze | Same |

For all three, confirm in writing with the fund that the policy is frozen, not cancelled. Ask whether management fees continue on the frozen balance (some funds charge, some don't).

**Banking:**
- Notify your Israeli bank you are moving abroad. They will tag the account for FATCA/CRS reporting to your destination country's tax authority
- Request a power of attorney (yipui koach) template in case you need a family member to handle a transfer while you are away
- Keep at least one Israeli debit or credit card active -- many government portals only accept Israeli cards for payment

### Step 4: Pre-Move Administrative Checklist

**Apostille on documents at the Foreign Ministry:**

For any Israeli public document you may need abroad (marriage certificate, birth certificates, academic diplomas, criminal record extract), get an apostille stamp. The confusing part: different documents go to different places.

| Document type | Apostille authority | Location |
|---------------|--------------------|----------|
| Interior Ministry documents (birth, marriage, divorce, death certificates) | Ministry of Foreign Affairs, Authentication Branch | Yitzhak Rabin Blvd 9, Kiryat HaLeom, Jerusalem |
| Court orders and rulings | Court secretariat | Any court in Israel |
| Notarized translations | Court secretariat | Any court in Israel |
| University diplomas | First notarize and translate, then court secretariat for the notarization | Any court |

Court-issued apostille stamps carry a per-stamp fee. Confirm it with the court secretariat, and allow one stamp per language per document (translations often need their own).

**Driver's license:** Apply for an International Driving Permit (IDP, rishayon binleumi) at a MEMSI office before leaving. It is valid for 1 year and is required on top of your Israeli license in most countries.

**Israeli apartment (if owned or rented):**

| Situation | Main considerations |
|-----------|---------------------|
| Own an apartment, decide to rent it out | Three Israeli landlord tax tracks, not two: (1) the **exemption track** for residential rent up to a monthly exemption ceiling, with a partial-exemption formula above it, so rent under the ceiling can be taxed at zero; (2) the 10% flat-rate track (mislul 10%) with no deductions; (3) the ordinary progressive track with deductions. **Check the exemption track FIRST**, since an expat whose rent falls under the ceiling who defaults to the 10% track pays 10% of gross for nothing, every year. Confirm the current monthly exemption ceiling at mas.gov.il, it is index-updated annually. Then sign a property management agreement (revenue-only or full management) |
| Own and decide to sell | Get a mas shevach (betterment tax) estimate before listing; expat sellers may still qualify for single-home exemption |
| Rent from a landlord and leave mid-lease | Check the lease for early-exit clause. Standard Israeli leases allow a mofe (substitute tenant) but require landlord approval |

**Employer exit (if Israeli employer):**
- Final payslip: confirm whether unused vacation (yimei chofesh) is paid out or carried (most companies pay out)
- **Tofes 161:** the severance/retirement form. Your employer files this when employment ends even if it is not retirement. You sign it to choose what happens with the pitzuim (severance) portion of your pension -- withdraw now with tax, or keep it inside the fund for tax deferral (ritza)
- Vested options / RSUs: confirm the exercise window post-termination (usually 90 days) and the tax treatment under Section 102 vs Section 3(i)
- Bonus clawback: read the contract. Some companies claw back a signing or retention bonus if you leave within X months

### Step 5: First-Year Abroad

**Tax year one (most complex year):** in the first calendar year abroad you are usually a part-year tax resident of both countries. File in both, apply the treaty tie-breaker rules, and claim the foreign tax credit. Use a dual-qualified accountant before signing anything.

**Bituach Leumi payment rhythm:** log in quarterly at btl.gov.il to confirm payments cleared. A missed year needs catch-up payments and leaves a coverage hole.

**Israeli voting:** there is no absentee voting for ordinary citizens abroad. You must be in Israel on election day (narrow exceptions for diplomatic staff).

**Stay reachable to Israeli government systems:**
- Keep an active Israeli phone number on a cheap prepaid plan. Many .gov.il portals send OTP codes to Israeli mobile numbers only
- Keep your personal area (ezor ishi) password on btl.gov.il and mas.gov.il up to date
- Register a forwarding address with Doar Israel if you expect paper mail

### Step 6: Return Planning (Toshav Chozer)

If you stayed out long enough and did not maintain Israeli tax residency, Israeli law gives you meaningful benefits on return.

**Two tiers of returning resident:**

| Status | Definition | Main benefit |
|--------|------------|-------------|
| Toshav Chozer (regular) | Foreign resident 6+ consecutive years | 5-year exemption from tax on foreign-source passive income (interest, dividends, royalties, pensions) and 10 years on specific foreign financial assets |
| Toshav Chozer Vatik (veteran) | Foreign resident 10+ consecutive years | 10-year exemption from Israeli tax on all foreign-source income and gains from foreign assets -- under Section 14 of the Income Tax Ordinance. Same treatment as a new immigrant |

**Time-limited 2026 exemption on Israeli-source earned income (new):** the Encouragement of Aliyah and Return to Israel Law (temporary provision), 5786-2026, passed March 2026, gives an oleh or a **toshav chozer vatik** who became an Israeli resident between 05.11.2025 and the end of tax year 2026 an exemption on earned income (yegia ishit) earned **inside Israel**, on top of the Section 14 foreign-income exemption. Ceilings: 600,000 NIS for 2026, one million NIS for each of 2027 and 2028, 350,000 NIS for 2029, 150,000 NIS for 2030. It is lost only if the person BOTH ceases to be an Israeli resident during 2028 or 2029 AND spent under 75 days in Israel in one of those years (the statute joins the two limbs with "and", not "or"). Two limits to quote with the ceilings: income from a relative (karov) is capped at 140,000 NIS per year for 2026 to 2029, and the 2026 ceiling is pro-rated by the part of the year the person was resident. **The eligibility window closes at the end of tax year 2026.** A returnee who would qualify as vatik should ask a CPA whether bringing the residency-start date forward is worth it. Regular toshav chozer status does not qualify, only olim and vatikim.

**Reporting change from 2026:** The reporting exemption was repealed by Amendment 272 to the Income Tax Ordinance, which applies to anyone becoming an Israeli resident from 2026 onward. The 10-year exemption from reporting foreign income and assets is gone. The tax exemption itself is unchanged -- you still pay no Israeli tax on foreign income during the 10 years -- but you must now file an annual return disclosing the worldwide income as exempt income. People who became residents before January 1, 2026 keep both exemptions.

**Bituach Leumi residency on return (do this, nothing else activates without it):** BL does not reclassify you as a resident just because Misrad HaPnim updated your address. You must file the BL residency questionnaire ("שאלון לקביעת תושבות", which official BL pages label by name rather than by number) at a branch or through the personal online area, with passport entry/exit stamps and evidence of center of life. This filing is what starts the kupat cholim waiting-period clock and what restores kitzvat yeladim, which BL does not resume automatically. The sister skill `israeli-returning-resident-navigator` carries the full first-90-days sequence.

**Customs and belongings:**
- Household goods and personal effects: duty-free as a returning resident, subject to "personal use, not commercial" quantity limits
- **Vehicle:** A toshav chozer may personally import a vehicle manufactured up to 48 months before import (regular residents are capped at 24 months), within 9 months of entering Israel. There is no tax exemption on the vehicle itself -- you pay full purchase tax and VAT, only the age limit is relaxed. **The customs prerequisite is TWO years abroad, not six** (a returning student needs 18 months). The 6-year figure is the income-tax tier and does not govern customs. A returnee abroad 2-4 years DOES get the 48-month window -- telling them they get "none of this" costs them the benefit.
- Full quantity rules: `references/toshav-chozer-customs.md`; deep mechanics: `israeli-returning-resident-customs-vehicle`

**Misrad HaKlita returning-resident track (separate from tax benefits):** the ministry runs an absorption program for returnees, parallel to but smaller than the oleh program: Hebrew refresher ulpan, employment counselling and retraining for the first 12 months back, and customs help. **There is no oleh-style sal klita cash basket for a returning resident**, so never promise one. Eligibility is TWO years abroad (five for returning scientists and business entrepreneurs), an Israeli citizen aged 17+ at return who was previously an Israeli resident, with visits to Israel of no more than 4 months per year over the last 2 years before return. The 6-year figure is the Income Tax Ordinance's TAX tier and does not govern this track. The certificate is administrative and does NOT grant the section 14 tax benefit by itself. Full basket: `references/return-side-deep-topics.md` and the sister skill.

Reference: see the sister skill `israeli-returning-resident-navigator` for the full Toshav Chozer benefits basket (grant amounts, employment programs, Ma'alot business centers, lone-soldier provisions for kids drafting into the IDF after the return).

**Children's status on return:** returning families with kids born abroad face a document drill mirroring the one done on departure: consular registration and Israeli passports, teudat zehut on first entry, and Ministry of Education recognition of foreign schooling (Hakara BeLimudim) for grades feeding into Bagrut. Full sequence and lead times: `references/return-side-deep-topics.md`.

**Time-critical passport note:** the Population and Immigration Authority arrangement letting Israelis enter and leave on a valid FOREIGN passport runs only until **30.09.2026**, and an Israeli passport is expected at airline check-in even when expired. Consular issuance takes 6-12 weeks, so a family flying home after that date needs to start now. Confirm whether the arrangement has been extended again before relying on either rule.

**Stock options, voluntary Bituach Leumi, and estate planning (return-side deep topics):**

Three further return-planning areas, detailed in `references/return-side-deep-topics.md`:

- **Stock options earned abroad** (RSU / Section 102): split-period treatment, sourced by vesting-period work location, not grant date. Foreign-vesting portion exempt for vatik under Section 14; Israeli-vesting portion taxable at marginal rate. Full mechanics: `israeli-toshav-chozer-vatik-tax-planner`.
- **Voluntary Bituach Leumi** (Bituach mi-Ratzon): self-employed abroad may preserve contribution history (unemployment on return needs 12 of the last 18 months). Confirm at *6050.
- **Estate planning while abroad**: dual-jurisdiction wills, host-country inheritance tax (US estate tax above $60K for non-resident-alien decedents, UK IHT), apostilled POAs. Matters past 5 years.

**Kupat cholim waiting period:**

- **Trigger:** the waiting period applies to someone who was abroad **18 consecutive months or more AND did not pay health contributions for at least 12 months** (or who ceased to be an Israeli resident). It is not a plain "2 years away" test.
- **Length: ONE waiting month per year of absence, capped at 6 months.** (A "year of absence" = a 12-month period with at least 183 days outside Israel; a "waiting month" = 25 consecutive days of presence in Israel.) It is **not** 2 months per year: that doubles the real wait.
- **Redemption (pidyon):** a **fixed statutory amount of 16,860 NIS (2026)**, payable in one payment or up to 6 equal instalments. It is NOT "12 minimum monthly contributions".
- **Why this matters, and why the old advice was backwards:** keeping Bituach Leumi current while abroad costs 123 NIS/month (treaty country) or 266 NIS/month (non-treaty) -- that is **1,476 to 3,192 NIS a year**. Redeeming the waiting period afterwards costs **16,860 NIS**. So maintaining coverage is far cheaper than redeeming, not the other way round. Advise the user to keep paying.
- **Reference:** `israeli-returning-resident-navigator` carries the same figures; the two skills must agree.

## Examples

### Example 1: Tech Worker Relocating to the Bay Area for 4 Years

User says: "I got an offer at a US tech company, moving to San Francisco in 3 months with my wife and 2 kids. What do I need to do?"

Actions:
1. Gather situation: destination USA (treaty country), duration 4 years, family of 4, Israeli-owned 4-room apartment in Ramat Gan, pension fund at Menora Mivtachim
2. Residency decision: 4 years is borderline. Since kids are with them and there is no clear Israeli home, recommend considering formal nituk toshavut and documenting it (will qualify as regular toshav chozer on return at year 6+). Flag the Form 1348 option if they keep ties
3. Generate pre-move checklist: Bituach Leumi continuation via standing order if staying resident, or formal exit if cutting; apartment rental with 10% landlord tax track; apostille on marriage and children's birth certificates
4. Pension fund: freeze the comprehensive fund and keren hishtalmut (early withdrawal costs 35% tax)
5. School records: apostille teudat gmar for kids in case of re-enrollment abroad
6. Budget for relocation: apostille stamps (one per document -- marriage, both birth certificates, diploma), an international driving permit, and property management fees on the Israeli apartment. Get current prices from the court secretariat, MEMSI/Israeli automobile club, and the managing agency -- do not quote figures from memory

Result: 12-week phased checklist with financial estimates and a flagged decision point for tax residency to review with an accountant.

### Example 2: Already in London Two Years, Missing Bituach Leumi Payments

User says: "I moved to London in 2024 for a job, didn't set up anything with Bituach Leumi. My lawyer says I owe them money. What's the story?"

Actions:
1. Identify they remained Israeli tax resident (no Form 1348 filed, family stayed) -- so Bituach Leumi is owed
2. Explain the UK-Israel social security agreement: if they pay UK National Insurance on employment, they are exempt from Israeli NI on that income and owe only health insurance (123 NIS/month minimum in 2026)
3. Walk through catching up: log in at btl.gov.il, request a balance statement (ishur yitra), pay the outstanding health insurance for 2024-2025
4. Warn: unpaid health insurance produces a debt (chov) but does not necessarily trigger a kupat cholim waiting period as long as it is cleared. Past a certain debt, Bituach Leumi can pursue collection through chiyuv
5. Set up standing order for future months

Result: A quantified back-payment plan and a forward payment rhythm that keeps kupat cholim clean.

### Example 3: Returning After 6 Years in New York

User says: "We're moving back to Israel next summer after 6 years in New York. What benefits do I get and what do I need to prepare?"

Actions:
1. Confirm 6+ consecutive years abroad = regular toshav chozer (not yet vatik which needs 10+ years)
2. Explain 5-year exemption on foreign passive income (dividends, interest, royalties) and 10-year exemption on gains from specific foreign assets held prior to return
3. Customs: personal effects duty-free, vehicle import window 9 months from entry, vehicle may be up to 48 months old from manufacturing
4. **Critical:** if Bituach Leumi payments were stopped, plan the kupat cholim return. Compare two paths: (a) wait out the waiting period (one month per year of absence, capped at 6 months) uninsured, with private bridge insurance, or (b) pay the redemption (pidyon), a fixed 16,860 NIS in 2026, and get immediate coverage
5. Tax residency restart: file as Israeli resident from day of physical return. The 2026 reporting rule applies if the return date is January 1, 2026 or later
6. Schedule a session with a CPA who specializes in toshav chozer 2-3 months before return to claim benefits correctly

Result: A return plan with customs timeline, tax benefit claim list, and a decision on the kupat cholim redemption.

## Bundled Resources

### Scripts
- `scripts/relocation-checklist.py` -- Generates a phased checklist (pre-move, first 90 days abroad, ongoing, return) based on stage, destination, duration, and family situation. Run: `python scripts/relocation-checklist.py --help`
- `scripts/residency-check.py` -- Walks through the Israeli tax residency days test and center-of-life questions and outputs a status recommendation. Run: `python scripts/residency-check.py --help`

### References
- `references/bituach-leumi-abroad.md` -- Contribution rules for Israelis abroad: minimum payments, treaty country exemptions, standing order setup, catching up on missed payments
- `references/toshav-chozer-customs.md` -- Customs and vehicle import rules for returning residents: quantity limits on household goods, vehicle age window, paperwork sequence

## Recommended MCP Servers

Pair this skill with `data-gov-il` or `datagov-israel` MCP servers to pull live government form links, agency contact data, and open datasets from data.gov.il.

| MCP | When to use |
|-----|-------------|
| `kolzchut` | Pull the current text of Kol-Zchut articles this skill cites (National Insurance abroad, returning resident benefits, reserve duty deferral, vehicle import) so guidance stays in sync with the live rights pages |
| `data-gov-il` | Look up the current URL for Rashut HaMisim forms (1301, 1348) or Bituach Leumi forms when the user needs a direct link |
| `datagov-israel` | When charting Israeli cost-of-living or emigration statistics as context for a relocation decision |

All three MCPs are optional -- this skill works without them, but pairing gives live data.

## Gotchas

- Agents often assume an Israeli who leaves the country is automatically a non-resident for tax purposes. They are not -- residency is tested by days plus center of life, and requires an active declaration (Form 1348) to contest the presumption. The default for an Israeli on a 2-year relocation is "still a resident."
- Agents may confuse Bituach Leumi with kupat cholim. They are linked but separate: Bituach Leumi collects the health insurance tax that funds kupat cholim. Stopping Bituach Leumi payments is what triggers the kupat cholim waiting period on return, not "suspending" the kupat cholim itself.
- Apostille stamps come from the **Ministry of Foreign Affairs** (for Interior Ministry documents) or from court secretariats (for notarized documents), not from Misrad HaPnim (Interior Ministry). Agents frequently send users to the wrong place.
- The "10-year tax exemption" for toshav chozer vatik requires **10 consecutive years** as a foreign resident. Short visits back to Israel can break the count if the Tax Authority considers them substantial. Agents may quote the 10-year benefit without checking continuity.
- Toshav chozer vehicle import is not a tax exemption. Agents often claim "tax-free vehicle for returning residents" -- in fact the benefit is only a relaxed age window (48 months from manufacturing instead of 24), not a tax discount.
- The 2026 reporting rule (effective January 1, 2026) applies to who becomes a resident on or after that date. Agents may confuse this with the tax exemption itself, which is unchanged.

## Reference Links

| Source | URL | What to check |
|--------|-----|----------------|
| Bituach Leumi -- contribution rates for non-workers | https://www.btl.gov.il/Insurance/Rates/Pages/default.aspx | Minimum national insurance and health insurance amounts (the Living_abroad landing page carries no figures) |
| Kol-Zchut -- National insurance while abroad | Kol-Zchut: "דמי ביטוח לאומי ודמי ביטוח בריאות לתושב ישראל השוהה בחו"ל" | Payment procedure and treaty country exemptions |
| Kol-Zchut -- Returning resident benefits | https://www.kolzchut.org.il/he/תושבים_חוזרים | Toshav chozer and toshav chozer vatik eligibility and rights |
| PwC Tax Summaries -- Israel tax administration | https://taxsummaries.pwc.com/israel/individual/tax-administration | Annual filing process, who must file, and the top marginal rate |
| PwC Tax Summaries -- Israel individual residence | https://taxsummaries.pwc.com/israel/individual/residence | Days test and center-of-life test details |
| hltaxes -- Israeli exit tax overview | https://www.hltaxes.com/post/israeli-exit-tax-a-glance-on-its-challenges-mitigation-options-and-new-expected-legislat | Section 100A deemed-sale mechanics, rates, deferral option |
| Kol-Zchut -- Reserve duty deferral due to going abroad | Kol-Zchut: "קיצור, דחייה או שחרור משירות מילואים עקב יציאה לחו"ל" | Form 58 vs Valtam, timing, appeal route |
| Kol-Zchut -- Vehicle import for returning residents | https://www.kolzchut.org.il/he/יבוא_אישי_של_רכב_לתושבים_וסטודנטים_חוזרים | Vehicle age limits and 9-month import window |
| Shivat Zion -- Returning Israelis knowledge base (Misrad HaAliyah operational guide) | https://shivatzion-support.freshdesk.com/en/support/solutions/501000223548 | Step-by-step Toshav Chozer process, customs, employment, healthcare on return |
| Bituach Leumi -- payments abroad | https://www.btl.gov.il/ | Voluntary continuation; call *6050 |
| PwC Tax Summaries -- Israel income determination | https://taxsummaries.pwc.com/israel/individual/income-determination | Section 100A rate granularity (25% / 30% / 23% corporate) |

## Troubleshooting

See `references/troubleshooting.md`.