Let's discuss taxation, retirement, and social rights for long-term immigrants in Israel and the Maldives. It's crucial for anyone considering relocating.
A topic that often gets overlooked, but undeniably important. Let's explore the Israeli and Maldivian tax codes.
In Israel, new immigrants ("Olim Hadashim") often receive tax exemptions or reductions on foreign income for their initial years. Afterwards, it's a progressive income tax system. National Insurance ("Bituach Leumi") covers health insurance, unemployment, and more.
A comprehensive system, meaning significant contributions are required. It's a trade-off: substantial contributions for extensive social security.
"Bituach Leumi" provides a robust social safety net, including public healthcare, unemployment benefits, and child allowances. It supports residents through various life stages.
The Maldives presents a stark contrast. Their economy focuses on tourism, with taxes primarily encompassing Goods and Services Tax (GST) and a Green Tax for tourists. Income tax for long-term immigrants is generally lower.
The Maldives lacks a comprehensive state-run social security or pension system comparable to Israel's. Retirement and social rights often depend on employers, private insurance, or personal savings.
Israel acts like a strict but caring parent ensuring financial security through high taxes and benefits. The Maldives is more like a lenient aunt, leaving much of the responsibility to the individual.
Israel's retirement age is tied to contributions, directly impacting pension size. In the Maldives, the onus is on securing one's financial future independently. It's a matter of personal preference: high-tax, high-benefit versus low-tax, high-personal-responsibility.
Which system is preferable? A lower tax burden with less social security or higher taxes with comprehensive benefits? It's a key consideration for long-term relocation.
Healthcare also differs significantly. Israel's "Bituach Leumi" covers universal healthcare. In the Maldives, long-term immigrants typically rely on employer-provided or private health insurance.
Israel offers a comprehensive safety net but at a higher tax cost. The Maldives is a low-tax paradise, but requires proactive individual planning for retirement and healthcare.
The core question isn't just tax rates, but what those taxes provide in terms of security and future planning. Countries support residents in vastly different ways.