How does Israel’s voluntary disclosure procedure work for undeclared income or foreign assets?

Israel’s voluntary disclosure procedure (giluy mirtzon) let people who had not reported income or assets, including foreign bank accounts and crypto, come forward, pay the full tax and avoid criminal proceedings if they met its conditions. The latest temporary procedure ran from 25 August 2025 until 31 August 2026, and the Tax Authority has confirmed it has ended. As of mid-September 2026 no new procedure has been announced, so corrections now have to be handled without that framework.

The short answer

Israel's voluntary disclosure procedure (in Hebrew, giluy mirtzon) was a temporary arrangement run by the Israel Tax Authority with the approval of the Attorney General. It let taxpayers who had broken tax laws come forward, report the income or capital they had hidden and pay the tax due by law. In exchange, if they met the procedure's conditions, they were not prosecuted. The most recent procedure was in force from 25 August 2025 until 31 August 2026. On 7 September 2026 the Tax Authority announced that it had ended. As of mid-September 2026, no new procedure has been announced.

How the procedure worked

Understanding the last procedure is useful for anyone who missed it and for anyone waiting to see whether a new one opens. Its main features were these.

Who could apply

Israeli residents and foreign residents could apply, including business owners, individuals, companies and corporate officers. Representatives (accountants, tax advisers and lawyers) could apply on their behalf. The procedure covered all tax areas: income tax, VAT, customs and real estate taxation.

Conditions

The disclosure had to be honest, complete and made in good faith.
The applicant had not been convicted of tax offences, had not paid an administrative settlement (kofer) for a tax offence, and had no earlier approved voluntary disclosure request.
Before the request, the Tax Authority or another enforcement body had not opened any audit or investigation into the applicant. This also covered the applicant's spouse, companies they controlled and partnership files.
The Tax Authority did not already hold information related to the request. It could refuse a request if material information had already appeared with another authority, in major media or in court proceedings in Israel or abroad.

Identified requests only, and two tracks

Unlike some earlier procedures, requests had to be identified, meaning filed in the applicant's name. They were submitted through an online form in the Tax Authority's personal area. The form included the amount of capital, the omitted income, the tax years involved, an estimate of the tax and the source of the income. Foreign residents without an Israeli tax file first had to register in the foreign resident system.

The investigations division checked each request against the conditions. Approved requests were then handled in one of two tracks:

Regular track: an assessment agreement signed with the relevant assessing office.
Green track: for relatively small cases. The applicant filed amended returns, or first-time returns if they had no file, that included the disclosed income. The Tax Authority's announcement described the green track cases as: income from financial assets held in a foreign financial institution with a balance below NIS 4,000,000 on 31 December 2014 and no new deposits during the disclosure period; residential rental income, in Israel or abroad, up to NIS 250,000 a year; or digital asset income up to NIS 500,000 for the whole period, where the fair value of all digital assets on 31 December 2024 did not exceed NIS 1,500,000.

The Tax Authority's service page also mentioned a shortened reporting route for rental income under the 10% tax track. The tax itself had to be paid in full.

Protection of the information

If a request was not approved, the Tax Authority said it would not use the information provided in civil or criminal proceedings. There were exceptions: information that reached it in another way, cases where the tax was not paid, and requests that were not made in good faith or hid part of the relevant information.

I missed the deadline. What now?

Without a procedure in force, there is no published framework that sets out in advance the conditions for avoiding criminal proceedings. That does not mean undeclared income should be left as it is. The exposure usually grows over time, as more information reaches the Tax Authority through banks, digital asset platforms and international exchange of information. Practical steps:

Do not approach the Tax Authority unprepared. Before filing anything, map the income, the years and the countries involved. Where there is possible criminal exposure, get advice from a tax lawyer.
Check whether a new procedure is announced. Israel has run these procedures several times. Follow the Tax Authority's official announcements rather than second-hand reports.
Separate real problems from reporting gaps. Some "undeclared" income turns out to be exempt, such as foreign income of olim within the 10-year exemption, and only a reporting question remains. See Do new immigrants to Israel pay tax on foreign income?

A note for olim and returning residents

Many olim assume their foreign accounts are simply "not Israel's business". For people who became residents before 2026, the 10-year exemption generally covered both tax and reporting on foreign-source income. Amendment 272 changed the reporting side for anyone arriving from 1 January 2026. A Knesset Research and Information Center review confirms that the tax exemption continues but foreign income must now be reported. Income from before aliyah, or from Israeli sources, was never covered by that exemption. Details are in Israel's 10-year tax holiday for olim.

If you are unsure whether past income or foreign assets were reported correctly, an English-speaking accountant can help you review the facts and work out the right next step, together with a tax lawyer where needed.

Is the Israeli voluntary disclosure procedure still open in 2026?

No. The temporary procedure published on 25 August 2025 ended on 31 August 2026, and the Tax Authority confirmed this on 7 September 2026. As of mid-September 2026 no replacement procedure had been announced.

Could foreign residents use Israel’s voluntary disclosure procedure?

Yes. The 2025–2026 procedure was open to Israeli and foreign residents. Foreign residents without an Israeli tax file first had to register in the Tax Authority’s foreign resident system.

Could I file an anonymous voluntary disclosure request?

Not under the 2025–2026 procedure. Only identified requests were accepted, submitted through the online form in the Tax Authority’s personal area.

What was the green track?

A faster route for smaller cases, such as foreign accounts under NIS 4 million on 31 December 2014, rental income up to NIS 250,000 a year, or limited digital asset income. The applicant filed amended or first-time returns instead of signing an assessment agreement.