Asnin-Dan CPAs (Israel)  

 'returning resident'

individual who left Israel, lived continuously outside of Israel and returned to Israel not sooner than 6 years afer having ceased to be a resident of Israel is tax exampt on the following things: 

1. passive income (from outside of Israel) for 5 years
2. capital gains (from outside of Israel) for 10 years
3. interest income from deposits in foreign currency in Israeli Bank

 'old-timer returning resident'

individual who left Israel, lived continuously outside of Israel, and returned to Israel not sooner than 10 years afer having ceased to be a resident of Israel is tax exampt on the following things: 

1. any income generated from outside of Israel for 10 years - notice that if the income is related to a service/work done from Israel it is not tax exempted.
2. is eligibale to get adjustment period of 1 year before determination of residency for tax purposes
3. Companies controlled by returning residents will not automatically be classified as Israeli companies
4. the amount of tax on a pension originating outside of Israel and received by a returning resident is not to exceed the tax that would have been paid on that same pension, had he remained a resident of said country
5. 'tax benefits for returning residents' - PDF

what is new? 

1. additional tax credits for returning residents who returned after living abroad for  6 years - limited until Sep 2012 (exactly as Olim are getting)
2. custom benefits for returning residents on new cars (limited until 2012)