Israel brain drain deepens after Gaza war

The exodus of high‑earning Israelis that accelerated after the 2022 political turmoil and the Oct 7 2023 Gaza war has continued to expand. Tel Aviv University’s 2025 study recorded more than 268,000 long‑term departures between 2023 and 2025, with roughly 90,000 leaving each year, a sharp rise from the pre‑2020 average of 60,000. The outflow is concentrated in the advanced‑technology and medical sectors, where average pre‑emigration incomes rose from about 125,000 shekels in 2019 to roughly 200,000 shekels by 2024.

Internal Tax Authority data released in 2026 show that the emigration rate of affluent Israelis has roughly doubled since 2019, driving tax‑revenue losses from around 500 million shekels a year to about 1.2 billion in 2023‑2024. Projections warn of annual shortfalls of up to 3.5 billion shekels over the next five years if the trend persists. A 50 % increase in departures since the COVID‑19 pandemic is evident, with the 40‑50‑year‑old cohort now representing a larger share of the outflow. The top‑earning 20 % of emigrants account for roughly two‑thirds of the total tax loss, underscoring concerns that the brain drain could erode Israel’s high‑tech‑driven economy and its security capacity.