Israel Faces Billion-Dollar Loss Due to Reverse Migration of Citizens

A recent study conducted by Professors Itai Atar Nitai Bergman and Doron Zamir from Tel Aviv University reveals alarming financial implications for Israel. The research published in the Israeli media outlet Walla indicates that the country loses approximately 910 million shekels (around 250 million dollars) annually in tax revenues due to the emigration of its citizens. Some supplementary estimates suggest that this figure could rise to 1.5 billion shekels during the 20-month period from 2023 to 2024.

The most concerning aspect of this trend is the accelerating rate of these financial losses. In 2020 the amount of tax revenue lost was 256 million shekels but over the span of four years this figure has nearly quadrupled. According to the researchers this surge signifies a shift in the profile of emigrants; it is no longer just unemployed youth or individuals seeking to evade military service who are leaving the country. Now high-income earners and primary taxpayers are also departing exacerbating the economic challenges faced by Israel.