Capital Gains Tax on Investments in Israel
How investment profits are taxed in Israel, the difference between real and nominal gain, and when tax is withheld automatically.
What is taxed
Capital gains tax applies to profit realised on a sale, not to an increase in value of something still held. Until you sell there is no taxable event — a point that affects long-term investor behaviour more than it might appear.
The rate on capital gains from securities for an individual in Israel is 25% of the real gain. Rates and conditions are set by legislation and change from time to time, so verify the current position with the Tax Authority or a qualified professional before acting.
Real gain against nominal gain
The law taxes the real gain — profit after removing inflation over the holding period. If a security rose 10% while the index rose 3%, the taxable base is not the full 10%.
This matters most over long holdings and in inflationary periods. For a foreign security the calculation also takes in the exchange rate, so a gain in dollars and a gain in shekels are not the same number for tax purposes.
Who collects it
Investing through an Israeli bank or broker, tax is generally withheld at source — the profit reaches you already taxed, with nothing further to do.
With a foreign broker the position differs: there is no Israeli withholding, and reporting is your responsibility. This is one of the more common surprises for people moving to an international platform and discovering it afterwards.
Offsetting losses
A loss on a sale can be offset against capital gains, subject to the rules. Tax is therefore computed on the net result rather than on each profitable trade separately.
On anything tax-related this is general information and not tax advice. The rules carry many exceptions and personal circumstances change the answer, so a decision driven by tax is worth checking with an accountant or licensed tax adviser.
Frequently asked questions
How much tax is paid on stock profits in Israel?
The rate on real capital gains from securities for an individual is 25%. Rates are set by legislation and may change — verify with the Tax Authority or a professional.
Is unrealised gain taxed?
No. The taxable event is the sale. An increase in the value of a security still held is not taxed.
What happens when investing through a foreign broker?
No Israeli entity withholds tax at source, and responsibility for reporting and payment falls on you.
Can losses be offset?
A capital loss can be offset against capital gains subject to the statutory rules, so tax is computed on the net result.
Israeli companies we do cover
Tel Aviv market data is not available here. Israeli companies listed on Nasdaq and the NYSE — Teva, Elbit, Check Point, CyberArk, NICE, monday.com and others — do carry live prices and full analysis.
Israeli stocks on Wall Street →
More on the Israeli market
- The TA-35 Index
- Israeli ETFs and Index Funds
- How to Start Investing in Israel
- The Shekel, the Dollar and Your Returns
This is neither investment advice nor tax advice.
Last updated: 2026-09-27