Now that we've covered visa applications, let's discuss taxation, retirement, and social rights for long-term immigrants in Israel and Lithuania.
Agreed. This is where the practicalities of relocation really come into play. Let's start with Israel.
In Israel, new immigrants, or Oleh Hadashim, enjoy a tax-free period on foreign income for about ten years. After that, it's a progressive income tax system. The Value Added Tax (VAT) is currently around seventeen percent. For businesses, there's corporate tax as well.
So, a progressive tax system and a seventeen percent VAT. Regarding retirement, how does that work in Israel?
Israel has a mandatory employer and employee contribution system for pensions, supplemented by state-provided Old-Age and Survivors' Benefits. Healthcare is universal through HMOs, offering a basic basket of services. However, navigating the Bituach Leumi (National Insurance Institute) bureaucracy can be challenging.
That's a common sentiment. Let's contrast that with Lithuania. Lithuania, as an EU member, has a flat income tax rate of fifteen percent and a twenty-one percent VAT. It's a simpler system, although the VAT is higher.
Retirement in Lithuania is managed through Sodra, their state social insurance, with mandatory employer and employee contributions. Their healthcare is also universal, funded through mandatory health insurance. Being in the EU means smoother transitions if you've moved from another EU country. They also offer various benefits like unemployment and maternity support, all managed by Sodra. Navigating Sodra is generally considered easier than Bituach Leumi.
So, Lithuania offers a more straightforward, EU-standardized system, while Israel provides significant initial tax benefits for new immigrants. The best choice depends on individual long-term plans and preferences.
Precisely. Someone starting out as a digital nomad might appreciate the Israeli tax break, while someone planning to settle down and raise a family might find Lithuania's stability more appealing. It's a matter of balancing immediate financial relief with long-term security.
Ultimately, both countries offer robust systems, but their approaches differ significantly. Consider your personal circumstances when making your decision.