Are you a non-resident investor monitoring the Israeli market? It is important tounderstand the tax implications of capital gains from sale of securities!

KeyPoint: The Israeli tax system offers a tax exemption on capital gains from thesale of securities for non-residents. This exemption has been in effect sinceJanuary 1, 2009.

EligibilityCriteria: To benefit from the exemption, non-residents must meet specificconditions:

1. Sale of Securities: Theexemption applies to securities sold after January 1, 2009.

2. No Permanent Establishment:Capital gains should not arise from a permanent establishment in Israel.

3. No Close Relationship:Ensure your acquisition doesn't involve a close relationship, followingrelevant provisions.

4. The sale is not of asecurity of a company in which, on the date of acquisition and in the two yearspreceding the sale, the main value of its assets, directly or indirectly, isderived from one or more of the following:

• A right in real estate or aright in real estate associations (as defined in Section 1 of the Land Tax Law)including any other right in real estate.
• A right to use real estateor any property connected to real estate in Israel.
• A right to exploit naturalresources in Israel.
• A right to fruits from realestate located in Israel.

5. Non-Traded Securities: Thesecurities being sold should not have been traded on an Israeli stock exchange.

Bytaking advantage of this tax exemption, non-resident investors can takeadvantage of the exciting opportunities in Israel's dynamic market. Don't missout on this benefit and if you're not sure whether you qualify for theexemption, it's a good idea to consult with a tax advisor.