67 The other main area to watch is tax While there were a few legal changes during 2023 that are relevant to private clients, it seems that the most important challenge is obviously the political challenge and the overall geopolitical situation. Except for this challenge, it seems that the other main area to which private clients should pay attention is tax. Currently, there is a draft of proposed legislation that will reappeal the exemption currently granted to “new immigrants” from reporting their non-Israeli source income to the Israeli tax authority during the first 10 years of their stay in Israel. The exemption from paying tax will still apply to such income, however, as result of a significant pressure from the OECD, the intention is to require such “new immigrants” to report such income. In addition, it should be mentioned that the government is considering granting certain tax benefits to “new immigrants” that will purchase residential properties in Israel. Also, it is worth noting that there is an intention to amend the rules determining tax residence in a way that will create certain conclusive presumptions regarding Israeli tax residence. We think that the geopolitical situation is, and will continue, in the near future, to be the most critical factor to private clients/HNW market. If the proposed legislation, described above, regarding new immigrants will be enacted, it, together with the overall situation in Israel, may cause HNWIs considering moving to Israel to reconsider such a move. The recent intention by the government to grant certain tax benefits to new immigrants buying residential properties in Israel may encourage those who decided to move to Israel to buy residential properties in the country. Wealth migration patterns reflect a quest for stability and opportunity and identifying lucrative investment avenues amidst evolving landscapes becomes crucial. Challenges such as currency exchange rates - which demand strategic hedging and risk management- as well as shifting regulatory and tax landscapes further complicate investment decisions, underscoring the importance of staying abreast of legislative changes and potential implications on wealth preservation.
RkJQdWJsaXNoZXIy MjgzNzA=