Kan reports that the surge in high-income Israelis leaving the country is projected to cause a revenue loss of 3.5 billion shekels per year, reflecting the growing economic toll of outward migration.
Kan reported Thursday evening that the flight of capital from Israel, driven by a surge in high-income Israelis leaving the country, is projected to cost the state 3.5 billion shekels in lost annual revenue. The figure, attributed to data reviewed by the public broadcaster, underscores the growing fiscal impact of outward migration among the country's top earners.
The figure comes amid a series of official and academic reports on the trend. As The Zioneer reported earlier Thursday, a Tax Authority study found an 80% rise in the share of emigrants from the top income decile, with high-tech and health sector departures doubling. That study noted that emigrants paid approximately 1.2 billion shekels in tax before leaving. In June, a Knesset committee was warned of a net loss of 140,000 Israelis over three years, described by lawmakers as a strategic threat.
The revenue loss from high-income emigration adds to the strain on Israel's national budget. The Finance Ministry recently reported a 2025 deficit of 4.7% of GDP, with a 100-billion-shekel gap between spending and revenue. The Treasury has warned that major defense spending increases could require tax hikes, including a potential 4.5% VAT increase. The new projection of 3.5 billion shekels in lost income represents a direct hit to the tax base.
Details on the methodology behind the Kan report and the specific data sources used were not disclosed in the initial report. The figure is based on analysis by the broadcaster's economic desk.
2 developments
- DevelopingNet emigration of 140,000 Israelis over three years, Knesset warned of strategic danger
- DevelopingNational Insurance data shows 35,625 lost residency in 2025, far below inflated media reports
- DevelopingOpinion: Israel's GDP nearly double South Africa's, author urges Jews to leave
- StrongTel Aviv University study finds 90,000 Israelis left for extended periods in 2025
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