We've discussed living abroad, and the practicalities are overwhelming. After choosing a location, how do you navigate taxes, long-term residency, and retirement? Today, we'll examine taxation, retirement, and social rights for long-term immigrants in Israel and Monaco.
These countries are vastly different. Israel offers a comprehensive social safety net, while Monaco's approach is, "Welcome, if you can afford it." Let's begin with taxation.
In Israel, long-term immigrants ("Oleh Chadash") receive tax benefits, such as a ten-year exemption on foreign income. Otherwise, it's a progressive income tax system, including VAT and national insurance contributions. It's a robust system supporting social programs.
Monaco, conversely, has no income tax for most residents. French citizens remain liable for French taxes. It's essentially a tax haven.
Zero income tax sounds ideal, but how does retirement work? Israel has mandatory private pension schemes and the National Insurance Institute (NII) provides old-age pensions based on contributions.
Monaco's retirement is less about contributions and more about pre-existing wealth. There's no state pension system; residents rely on private plans or personal savings. Previous contributions to French social security may apply.
Regarding social rights, Israel's NII covers health insurance, unemployment, and disability benefits. It's a strong social safety net providing healthcare and education access.
Monaco's healthcare is excellent but private. A robust private insurance policy or significant personal wealth is necessary. There's no extensive government-provided welfare or unemployment benefits.
This contrast highlights the importance of prioritizing needs. Do you value a robust social safety net or minimal tax obligations?
Israel emphasizes structure and shared responsibility; Monaco operates more like a "survival of the wealthiest" system. The differences are striking.
Understanding these differences is crucial for anyone considering relocation. It's about more than climate and cuisine; it's about societal support.
Precisely. Let us know your thoughts in the comments.