This discussion highlights the complexities of building a life abroad, particularly concerning taxation, retirement, and social rights for long-term immigrants. Let's compare Israel and Mongolia.
Israel's system is unique, especially for new immigrants, or "Olim Hadashim."
They receive a ten-year tax exemption on foreign income. It's a welcoming incentive. However, the general income tax is progressive, and the VAT is around 17%. The National Insurance Institute (Bituach Leumi) provides a comprehensive safety net, covering healthcare, pensions, and unemployment benefits.
Essentially, you contribute to alleviate future worries, although the paperwork can be extensive. In contrast, Mongolia employs a flat 10% income tax rate for individuals.
This simplicity is appealing, but the social safety net isn't as robust as Israel's. The State Social Insurance Fund covers pensions, but other benefits may require private options, especially outside Ulaanbaatar.
So, you might save on taxes but spend more on personal insurance. It's about finding the right balance. Understanding these differences is crucial for informed decision-making.
Whether it's Israel's progressive system with immigrant benefits or Mongolia's simpler flat tax, each country offers a unique approach to supporting long-term residents. It's not solely about what you pay but also what you receive in return.
Precisely. Understanding these nuances is key to successful long-term immigration.