Overview
Family tax planning in Israel focuses on: distributing income among family members to use lower brackets, maximizing credit points across both spouses, timing income and deductions, and choosing the right business structure. Since passive income is generally attributed to the higher-earning spouse, proactive planning is needed to achieve optimal results.
Key Strategies
- Both spouses should work (even part-time) to utilize both sets of credit points
- Consider a family company election for family businesses
- Maximize pension and training fund deposits for both spouses
- Donate to Section 46 organizations for the 35% credit
- Time capital gains realization to optimize brackets
- Register rental properties under the lower-earning spouse (if genuinely theirs)
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.