Israel faces record brain‑drain of wealthy professionals, costing billions in tax revenue

Internal documents from the Israeli Tax Authority show that the rate of emigration among affluent Israelis has roughly doubled between 2019 and 2024. Tax losses from these departures rose from about 500 million shekels (≈ $166 million) a year in 2019 to roughly 1.2 billion shekels (≈ $400 million) in 2023‑2024, with projections of up to 3.5 billion shekels annually over the next five years if the trend continues.

A study by Tel Aviv University, released in 2025, counted more than 90 000 Israeli citizens who spent at least three consecutive months abroad, and a total of 268 509 Israelis who left the country for longer periods between 2023 and 2025. The researchers highlighted that the surge is driven largely by high‑earning workers in the advanced‑technology and medical sectors, whose average annual income before emigrating rose from 125 000 shekels in 2019 to about 200 000 shekels in 2024.

Additional analysis confirms a 50 % increase in the number of emigrants since the COVID‑19 pandemic, with the 40‑50‑year‑old age group now representing a larger share of the outflow. The concentration of departures among the top‑earning 20 % of the population accounts for roughly two‑thirds of the total tax loss, underscoring concerns about a growing brain‑drain that could undermine Israel’s high‑tech‑driven economy.