High-income Israelis working in technology, healthcare and other skilled sectors are leaving the country at nearly twice the pace recorded before 2020, according to a new study by the Israel Tax Authority. The research found that emigration among affluent Israelis reached record levels in 2023 and 2024.
The trend has been driven largely by doctors, engineers and other highly educated professionals in their prime working years. The study was conducted by the Israel Tax Authority’s Planning and Economics Division. It examined income levels and tax payments of Israeli residents who moved abroad over the past decade.
The analysis showed a clear shift in the profile of Israelis leaving the country. Earlier emigrants had income levels close to the national average, while recent emigrants earned around 50% more than the average income in Israel before departure.
“From all the indicators regarding Israelis recently leaving the country, a consistent picture emerges: the pace of emigration among the strong and affluent strata of society increased, whereas among the weaker strata, the departure rate is almost unchanged,” said Dr. Ariel Greizaz and Nili Ben-Tovim, the authors of the study.
The researchers reported that it is difficult to determine the change, whether it is linked to labour market shifts after the COVID-19 pandemic, political developments surrounding the judicial overhaul, or security events following the October 7 attack and the Gaza war.
The study warned that continued departure of high earners could create noticeable pressure on state revenues. Researchers estimated that Israel could lose tax income of around NIS 3.5 billion annually if the trend continues at the current pace.
The study showed that income taxes paid by Israelis before leaving averaged about NIS 500 million annually between 2015 and 2019. That figure increased to about NIS 1.2 billion annually in 2023 and 2024. The authors estimated that the outflow of citizens resulted in a potential annual tax revenue loss of about NIS 700 million. The tax authority clarified that some emigrants continue paying taxes in Israel after moving abroad if they retain their residency status.
The shift has raised concerns for Israel’s economy, which depends heavily on skilled workers in sectors such as technology. The tech industry contributes around a fifth of the country’s GDP and accounts for more than half of exports. The study found that the share of emigrants in their 40s and 50s increased by more than 50% compared with a decade earlier. This age group now represents about 20% of emigrants above the age of 20, compared with 13% earlier.
“The increase in the age of emigrants affects total tax receipts in a non-linear way, because those aged 30-50 are the high-income earners and the primary taxpayers,” said Greizaz and Ben-Tovim.
Economists have warned that continued migration of skilled professionals could affect Israel’s long-term growth prospects. Itai Ater, an economics professor at Tel Aviv University’s Coller School of Management, said the trend requires urgent attention.
“More Israelis, including many high-earners such as physicians and tech workers, are leaving Israel in recent years,” Ater told The Times of Israel. “It is crucial that we tackle this dangerous trend before it becomes too late.”
The findings add to recent research showing continued high levels of Israeli emigration. The latest data has intensified debate over the impact of political uncertainty, security challenges and economic factors on the country’s future workforce.
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