Is there an exit tax when leaving Israel for Cyprus?
Short answer
Yes. When you stop being an Israeli resident, your assets are treated as sold on the day before. You can pay the tax then, or wait until you actually sell; if you wait, the Israeli share of the gain is the real gain multiplied by the time you held the asset before leaving, divided by the total time you held it.
The exit tax is one of the tax positions the Israel Tax Authority asks to be reported, on Form 1346.
Shares in your own companies are assets too, which is why founders plan the date of their move with their Israeli accountant.
Sources
Information, not advice. This answer describes the published rules as they stand on 12 October 2026, checked against the sources listed. Tax and residence rules depend on your own circumstances and change; check your position with a tax adviser qualified in Israel and in Cyprus before you act on it.
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