Let's discuss taxation, retirement, and social rights for long-term immigrants in Guatemala and Israel. Understanding these aspects is crucial for anyone considering a long-term move.
Absolutely. Let's start with taxation. In Guatemala, long-term resident immigrants are taxed similarly to citizens. There's a progressive income tax and a Value Added Tax (IVA) on goods and services. While the VAT is generally lower than in some European countries, the public services provided may not be as extensive.
In Israel, the tax system is more robust, with a progressive income tax and a 17% VAT. However, new immigrants ("Olim Hadashim") receive significant tax benefits, including a 10-year exemption on foreign income.
Regarding retirement, Guatemala has the IGSS (Guatemalan Social Security Institute). While it offers pension coverage for employed individuals, it might be considered less comprehensive than other systems. Many rely on private savings or family support. In Israel, the National Insurance Institute ("Bituach Leumi") is mandatory for residents and covers pensions, disability, unemployment, and maternity benefits.
Concerning broader social rights, public healthcare and education exist in Guatemala, but their quality and accessibility can vary, particularly outside major cities. Access often depends on residency and employment status. Israel, in contrast, offers universal healthcare through health funds and free education from kindergarten to university for citizens and many long-term residents. Their welfare system is also quite extensive.
Essentially, Guatemala presents a more independent approach, requiring individuals to build their own financial and social safety nets. Israel offers a comprehensive system, but with a higher cost of living. The choice depends on individual preferences and financial resources.