A capital declaration (hatzharat hon) is a statement to the Israel Tax Authority of all assets and liabilities, in Israel and abroad, held by you, your spouse and your children under 18 on a given date. You file one only after the Tax Authority sends a demand. The deadline is 120 days from the demand or from the declaration date, whichever is later. From 1 January 2027, capital declarations can be filed online only.
A capital declaration (in Hebrew, hatzharat hon) is a snapshot of your wealth on a specific date. It covers everything you own and owe, in Israel and abroad. It includes your spouse and your children who were under 18 in the tax year. You do not file one on your own initiative. You file it when the Tax Authority sends you a demand. The deadline is 120 days from the demand, or 120 days from the date the declaration refers to, whichever is later.
A capital declaration lets the assessing office compare how your net worth changed between two dates with the income you reported in between. If your wealth grew much faster than your reported income, the gap needs an explanation. Typical explanations are a gift, an inheritance, a loan, a tax-exempt income source or savings from before you moved to Israel. This is why the first declaration matters so much. It sets the opening point that later declarations are measured against.
The Tax Authority's service page is clear: a capital declaration is filed by anyone who received a demand from the Tax Authority. In practice, demands commonly go to:
Salaried employees with no other income rarely receive a demand, but it can happen.
New immigrants (olim) and veteran returning residents have long had a 10-year tax exemption on foreign-source income. Until now they were also exempt from reporting that income. Amendment 272 to the Income Tax Ordinance was published in the official gazette on 7 April 2024. According to a Knesset Research and Information Center review, it cancels the reporting exemption for anyone who arrives from 2026 onwards. The tax exemption itself stays in place. In practice, olim who became residents from 1 January 2026 should expect their foreign assets and income to be visible to the Tax Authority. A capital declaration demand has to be answered in full, including assets abroad. For the background, see Israel's 10-year tax holiday for olim and Do new immigrants to Israel pay tax on foreign income?
The declaration covers assets and liabilities in Israel and abroad for you, your spouse and your minor children. This usually includes:
The Tax Authority asks for supporting documents. Its examples are purchase agreements, balance confirmations, loan agreements, bookkeeping ledger cards and balance sheets. You can attach copies, but the assessing officer may ask to see the originals.
At the time of writing, in September 2026, there are three ways to file: online, or with the manual form either scanned or handed in at an office.
On 8 September 2026 the Tax Authority announced that new rules and an order on online filing had been published in the official gazette (Reshumot). From 1 January 2027, capital declarations can be filed online only. Scanned forms sent through the inquiry system and paper forms handed in at offices will no longer be accepted. Until that date, all three methods remain available. If you have a demand with a deadline after 1 January 2027, plan to use the online system.
People moving to or from Israel often receive a demand around the time their tax residency changes. A well-documented declaration at that point can prevent questions later about where money came from. If you are leaving Israel, read it together with relocation and exit tax considerations.
If you received a demand and your assets are spread over several countries, an English-speaking accountant can help you gather the documents and prepare the declaration in the online system.
No. A capital declaration is filed only when the Tax Authority sends a demand. Business owners tend to receive demands periodically, and each one refers to a specific date.
According to the Tax Authority, within 120 days from the demand or 120 days from the date of the required declaration, whichever is later.
Until 1 January 2027 you can file online, scan the manual form 1219 through your personal area, or submit it at an assessing office. From 1 January 2027 capital declarations must be filed online only.
Under Amendment 272, olim and veteran returning residents who arrive from 2026 no longer have the old exemption from reporting foreign income, although the 10-year tax exemption remains. If you receive a capital declaration demand, it covers assets in Israel and abroad.