A boost for the diamond industry: a historic tax agreement positions Israel against Belgium and Dubai
The Diamond Exchange and the Tax Authority have signed a historic tax agreement for 2027–2028, aimed at restoring the industry's competitiveness against Antwerp and Dubai. The agreement sets a lower tax rate than Belgium, eliminates the minimum income floor, and opens Israel to registering foreign companies. Diamond Exchange President Nissim Zuaretz led the initiative with the Tax Authority and the Ministry of Finance.
The Diamond Exchange in Ramat Gan and the Tax Authority have signed a historic tax agreement for the diamond industry, effective for 2027–2028. The agreement aims to reverse the trend of diamond companies fleeing to Antwerp and Dubai, positioning Israel as a competitive trading hub. It determines that a diamond dealer's taxable income will be set in advance as a fixed and low percentage of turnover, and eliminates the minimum income floor that previously required reporting high income even with limited activity. The agreement places Israel in a competitive position: in Belgium, the taxable income stands at 2.1% of turnover—more than three times that of Israel. Gemstones and jewelry enter Israel duty-free, compared to 5% in Dubai, and registering a foreign company in Israel is quick and open to any foreign citizen, while in Dubai the process may take over a year. The agreement was formulated through staff work led by Diamond Exchange President Nissim Zuaretz, along with Vice President Aviad Bashari, CEO Nadav Shainberg, and the head of the Tax Authority's chief of staff, Karim Kanaan. Zuaretz noted that the agreement marks a historic turning point and provides certainty and stability for the Israeli diamond dealer. The agreement fulfills the commitment of Finance Minister Bezalel Smotrich to strengthen the industry.