Category: Aliyah

We’re proud to announce the publication of our free e-book, Your Route to Career Success in Israel. This book covers everything you need to know about working in Israel – whether as an employee or a small business owner. Here’s a small taste of what you can find in this 86-page book.

Considering aliyah? Figuring out how to make a living in Israel is at the top of your list of pre-aliyah tasks. This book will help you figure out whether to keep your current job, find a new one in Israel or open your own business. 

The days when it was extremely challenging to make a living in Israel are long gone. However, it’s not always easy to continue on the same career path you started in your home country and you may find yourself making some adjustments to your current career trajectory.

It’s also possible that although you can continue on your exact career path, you don’t actually want to, and the move to Israel is a good opportunity to try something new. Some olim take advantage of the lack of social hierarchy in Israel to take a job that might have been looked down on in their home country. Or they may pivot into a field they are interested in, but hadn’t had the chance yet to make the leap.

Just moved to Israel and struggling to find a job? We’ve got advice on how to find a job.

Your first step in your job search is to create a resume (or CV as it tends to be called here) that fits Israeli standards. CVs should be one page long and include a list of skills above your experience and education. If you’ve had many jobs, remove the oldest ones and the least relevant to the job you are applying for, so you can keep to the one page format. 

You’ll also learn what to expect once you land a job.

When you come on aliyah you have to leave a lot of assumptions back in the old country. Government bureaucracy, customer service and finances are just some of the areas in which things are likely very different from what you’re used to.

The same holds true for employment laws. You don’t want to go into the Israeli workforce expecting the same rights as you had in your job abroad. In some cases, Israeli law protects you more than the law in your home country. But if you are not aware of your rights, they can easily be impinged on. On the other hand, you may end up being disappointed when you find out that your employer owes you less than you expected based on what you are used to from abroad.

Been in Israel for a while but thinking of changing up your career? Read this book for tips on quitting your job, freelancing or looking for a new position.

If you are not happy with your job or you have found a better one, it may be time to quit your current job and move on. Israel is a small country and almost everyone is connected in some way, so it’s important to leave in a professional way and on the best terms possible. 

Make sure that you give proper notice according to the law. Israeli employment law states that an employee who has received a monthly salary in an organization for up to one year must give notice as follows: one day for each of the first 6 months of employment and two and a half days for each additional month of employment. If you have been working at the same company for over a year, you must give one month’s notice. 

Learn about business and workplace culture, your rights and obligations as an employee or business owner and lots of other advice on navigating a career in Israel.

Hanging out your shingle and starting your own business? Congratulations! There are a lot of wonderful things about being your own boss – starting with the fact that you are your own boss… But before you get started, you need to make sure that you are set up legally to operate and collect payment.

Most small businesses start as “Osek Patur” (exempt business), since their projected income for the first year is not over 120,000 NIS. If your projected income is above that amount or you belong to a professional which is never exempt, you will be considered an “Osek Murshe” (licensed business). 

Of course, Your Route to Career Success in Israel also provides information about the use of Employer of Record services – who should use them, how they work and how they can help you succeed in your career.

In order to provide services to a company abroad, you have to be registered as a freelancer or as an employee here in Israel. There is no way to be officially employed by a company outside of Israel that doesn’t have an office here. Since freelancing isn’t always the best choice, we provide Employer of Record services to people who provide services to one or more companies.

Here at Route 38, we believe that knowledge is power. The more you know about the work culture and laws in Israel, the easier it will be to make a living here. Our mission is to pave the way for you to enjoy a satisfying and lucrative career in your homeland. 

Download the book and arm yourself with knowledge!

Moving to Israel doesn’t end an American citizen’s tax obligations to the US government. If you’re an American expat in Israel, you need to understand  how US tax reporting affects you, so that you can make financially smart decisions.

US-Israel tax treaty

The US and Israel have signed a series of tax treaties which prevents dual citizens from being taxed in both countries. What this means practically is that you will be taxed in the country which is deemed to be your primary residence. This is determined based on many factors, primarily:

1. Your habitual abode -You will be considered a resident of the country where you have the closer personal and economic relationship.
2. Nationality – If you are a citizen only of one of the countries, you are considered a resident there. If you are a dual citizen, there are other factors that are brought into play.

If you are considered a permanent resident of Israel but maintain your American citizenship, you will likely not have to pay income tax on earned income in the US (there are exceptions on very high salaries), but you will have to file an income tax report each year. There are accountants in Israel who specialize in filing taxes for Israeli and American dual citizens, and it is generally preferable to work with them as opposed to hiring an American CPA who is not familiar with the issues facing dual citizens. (We have a long-standing relationship with Yosefa R. Huber, CPA, who assisted in the preparation of this article.)

Child tax credit

The United States government offers a tax credit per child which reduces the amount of tax that a citizen pays. For many dual citizens who are reporting income but not paying income tax, this can translate into a refund from the US government. At one time, it was popular for Israelis to go to great lengths to obtain American citizenship for their children in order to benefit from this payout, in situations where one parent was an American citizens but neither parent had ever lived in the US. However, due to the obligations these children will have to the US government in their adult life (starting with having to file an income tax report each year), parents should think carefully before going down that road.

FBAR

The FBAR (Foreign Bank Account Report, also known as FinCen Form 114) is a report that must be filed annually if you have an aggregate of over $10,000 in one or various non-US accounts, including savings accounts such as your pension fund, Keren Hishtalmut or Kupat Gemel. It is important to fill out this form before the deadline to avoid heavy fines. You can fill this form out yourself if you know exactly what needs to be declared. Otherwise, it is recommended to hire an expert to file on your behalf.

There is an additional report that you may need to file as part of your tax return if you exceed certain other higher thresholds. We advise you to speak to an Israeli-based US CPA if you think you may qualify for this requirement. 

US Social Security for the self-employed

If you’re a self-employed American citizen, the US requires that you contribute 15% of your income to Social Security. If you accrue 40 credits, you will get a monthly payout upon your retirement. The Social Security tax can be quite challenging for dual citizens, who are also required to contribute to Bituach Leumi (Israeli social security) and a private pension plan. These regulations can discourage people from opening a small business or freelancing. An alternative is to be employed by an Israeli company which issues your invoices and pays you a salary each month (Employer of Record service), while you maintain creative control over your business. 

Renouncing US citizenship

Some dual citizens feel that US citizenship is too much of a burden and that the privileges of voting in a US election and holding a US passport aren’t worth the headache of complying with US tax laws. Renouncing US citizenship is done by appearing in person at the US consulate, signing an oath of renunciation, filling out paperwork and paying a fee. It also requires giving up one’s green card, where applicable, not just letting it expire. You may also be liable for an exit tax, depending on your assets and past tax compliance. Renunciation is irreversible, so you need to be really sure before taking this step.