Ever wonder why there’s so much “off the books” work in Israel?

Ever wonder why there’s so much “off the books” work in Israel?

It’s estimated that around 20–25% of Israel’s economy operates in the shadows.

That’s roughly double the European average (10–15%) and three times higher than in the U.S. (about 8%).

But it’s not what many think.

It’s rarely about living luxuriously or dodging responsibility.

For many people, it’s simply a survival mechanism - a way to make ends meet when official earnings don’t stretch far enough, or when they lack access to tax-advantaged income sources and investment tools that others take for granted.

In a system where high taxes, complex bureaucracy, and limited financial education collide, some people feel they have no choice but to step outside the formal economy. 

Not because they want to cheat, but because they want to afford basic food or housing.

But there is an alternative.

By learning how to structure income through tax-advantaged sources such as smart investments, small-business setups, or tax efficient savings plans, people can build stability within the system instead of outside it.

With that approach, there’s no need to stress about getting caught with unreported income. 

There would be peace of mind that comes from doing things right and still coming out ahead.

The real solution isn’t more enforcement; it’s educating the public on how to find tax advantaged investments and utilize them as an alternative. (And perhaps some tax reform.....).