The exodus Israel cannot afford

Photo Credit: The Cradle

AUG 31, 2026

New Israeli data shows that citizens heading for the exits increasingly include the doctors, engineers, tech workers, and high-income taxpayers on whom the occupation state’s war economy depends.

In the early hours of 7 October 2023, an Israeli journalist identified only as Asaf booked flights for himself, his wife, and their two daughters. The next day, carrying only hand luggage, the family boarded a flight to Berlin. What began as an emergency exit became permanent. Two years later, they had not returned.

Asaf told +972 Magazine that he already believed Israel’s education and healthcare systems were deteriorating. But that morning destroyed his remaining confidence in the state and its military: “By the afternoon of 7 October, we understood that even this wasn’t true.”

His story reflects a larger structural trend. Israel is disproportionately losing the doctors who staff its hospitals, the engineers who sustain its technology sector, the academics who reproduce its scientific capabilities, and the taxpayers who finance its wars.

The numbers Israel struggles to define

Emigration cuts against the Zionist claim that Israel offers Jews security and permanence. Hebrew itself reflects the tension: immigration is aliyah, or “ascent,” while emigration is yerida – “descent.”

An August 2026 Tel Aviv University study, based on Central Bureau of Statistics data, found that 90,922 Israeli citizens remained abroad for at least three consecutive months in 2025, following 91,499 in 2024 and 86,509 in 2023. In total, 268,509 Israelis left for at least three months between 2023 and 2025 – 47 percent more than during 2013–2015.

The three-month measure is not equivalent to permanent migration. But the researchers found a correlation of 0.96 between three-month departures and remaining abroad for at least one year. On that basis, they estimated that 45,000–50,000 Israelis became long-term emigrants in 2025 alone.

Citing official and research data, +972 Magazine put the long-term total above 150,000 over two years and suggested it may have surpassed 200,000 since Israeli Prime Minister Benjamin Netanyahu’s current government was formed.

Israel’s National Insurance Institute reported 35,625 residency terminations in 2025; 6,651 were requested voluntarily. This administrative measure is neither a count of citizenship loss nor a clean measure of permanent emigration, but it shows that thousands were formally loosening their ties to the state.

Follow the taxpayers

The Israeli Tax Authority has documented a deeper demographic and fiscal shift. Until 2019, emigrants earned approximately the national average. By 2024, their average pre-departure income had reached around 200,000 shekels – 50 percent above the national average and 60 percent higher in real terms than before the pandemic.

As the study’s authors put it: “The pace of emigration among the strong and affluent strata increased, while among the weaker strata it remained almost unchanged.”

According to the Hebrew-language economic daily Calcalist, the departure rate among Israel’s highest income decile rose from approximately 0.3 percent in 2015–2019 to more than 0.5 percent in 2023–2024 – an increase of around 80 percent. That decile accounted for 67 percent of emigrants’ combined income and 86 percent of the income tax they had paid before leaving.

Compared with the 2015–2019 period, the number of people leaving high-tech increased by approximately 150 percent in 2023–2024, while the number departing healthcare more than doubled. Among people aged 40–50, the share of adult emigrants rose from 13 to 20 percent, and their combined pre-departure income tripled to 2.7 billion shekels.

Established professionals, rather than mainly younger workers at the outset of their careers, are increasingly taking their skills, families, savings, and capital abroad. The number reporting overseas transfers exceeding 500,000 shekels quadrupled in 2023–2024.

Official statistics record absence more reliably than destination, but a new geography is visible. A Haaretz investigation found a growing demand for relocation to Portugal, Cyprus, and other European states. Cyprus has become a contingency base for some: in the first days after Operation Al-Aqsa Flood on 7 October 2023, Reuters reported that more than 2,500 Israelis sought refuge there.

Greece is another destination. According to Le Monde, Greek authorities reported an approximately 70-percent rise in “golden visas” issued to Israelis after Operation Al-Aqsa Flood. Not every visa or property purchase becomes permanent migration, but each relocation lowers the informational, social, and financial barriers facing the next family considering departure.

The fiscal cost of a shrinking base

Each annual cohort that emigrated in 2023 and 2024 had paid approximately 1.2 billion shekels in income tax before departure, compared with around 500 million shekels for cohorts before 2019. The Tax Authority estimates a potential loss of about 700 million shekels per cohort. Some emigrants retain Israeli tax residency, but if similar cohorts accumulate, annual revenue at risk could approach 3.5 billion shekels within five years.

Israel’s high-tech sector produces roughly one-fifth of GDP, more than half of exports, and about one-third of salaried income tax. It also provides expertise in cyberintelligence and military technology. Sustained outflow could weaken both commercial innovation and capabilities central to Israel’s security doctrine.

Israel’s war economy rests heavily on a relatively small, highly productive section of the population, even as its policies push more of these workers and taxpayers abroad. Their departure leaves fewer people to shoulder a growing fiscal and military burden.

The Bank of Israel has separately warned that low labor-force participation among Haredi men and the need to broaden military service remain structural challenges.

For some, relocation is a silent political withdrawal – a vote with their feet against a state increasingly defined by religious polarization and permanent mobilization. Economist Itai Ater warns: “If there is no change, emigration could increase in a way that endangers Israel’s security and economy.”

The state’s attempt to buy time

In March 2026, the Knesset Finance Committee approved a graduated five-year income-tax exemption for qualifying immigrants and long-term returning residents. The ceiling reaches one million shekels in 2027 and 2028; the Finance Ministry initially estimated the five-year cost at 560 million shekels.

Officially, the measure promotes immigration and growth. In practice, it also reveals the scale of the concern: Israel is losing some of those it can least afford to lose and must pay a premium to recover or replace them.

Tax incentives cannot easily compensate for prolonged war, repeated reserve mobilization, political instability, institutional polarization, or an increasingly militarized future.

Physical war damage can be repaired with money. Buildings can be reconstructed and weapons replenished. But when a state loses the people who generate its technology, operate its hospitals, staff its universities, and finance its military, the damage becomes cumulative and structural.

Israel’s most consequential wartime losses may ultimately be the people who quietly conclude that their future lies elsewhere.

[…]

Via https://thecradle.co/articles/the-exodus-israel-cannot-afford

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