If you plan on working in Israel after you make Aliyah, you should be aware of taxation and employment methods. There are tfour different ways of working in Israel:
Employed by a company — taxes are deducted at source.
Osek Patur — a self-employed person who does not charge VAT and does not get back VAT from the government. You are responsible for reporting sales and paying taxes.
Osek Murshe — a self-employed person who charges VAT for work done and deducts paid VAT from VAT collected on billings. You are responsible for reporting sales and paying taxes, including VAT.
Working for your own company — if you are an American citizen, you are required to pay social security to the US. Some people choose to open a B’Am and become employees of their own company.
It is best to discuss the different choices with an accountant before starting.