Finance Ministry report sheds light on 400 wealthiest Israelis

Israel's superrich are for the most part men, typically live in Tel Aviv, and have an average age of 56, the Finance Ministry's Chief Economist Yoel Naveh said on Sunday.

Naveh, who released the information in a report on Israel's richest 400 individuals, said that 53% of Israel's wealthiest people choose to live in Tel Aviv and 80% reside in central Israel, while only 5% live in northern or southern Israel. According to Naveh's report, the share of superrich among those who are 55 years and over is disproportionately high.

The average annual income of Israel's richest class stands at 36.9 million shekels ($10 million), compared to the average annual national income of NIS 127,000 ($35,000). This means the superrich make, on average, 290 times more than all other Israelis. According to Naveh, on top of their official compensation, the superrich get on average some NIS 60 million ($10.2 million) from passive income owing to companies and assets they own.

The chief measure used to determine who qualifies as superrich is annual income, with the cutoff being NIS 10.2 million ($3 million). In the U.S., the superrich are usually defined as those who make at least $132 million a year -- 46 times higher. Consequently, America's superrich are more than 33 times richer than their Israeli counterparts, making $330 million a year on average.

Only 11% of those who made the cut in Israel are women, and their average income is 12% smaller: NIS 33 million ($9 million) a year on average. Even though the superrich comprise only 0.01% of Israel's population, their income accounts for 2.9% of Israelis' income and 4% of the tax revenues.

Furthermore, the Israeli superrich pay some NIS 10.2 million ($2.9 million) on average in direct taxes per year, more than 400 times what average Israelis pay (some NIS 25,500 or $7,000).

The Forbes 2017 Billionaires List, which was published in late March, named 18 Israelis among the world's richest. Israeli real estate and shipping mogul Eyal Ofer was ranked 145th, with a net worth of $8.9 billion, and his brother Idan was ranked 630th. Israeli businessman Stef Wertheimer, described by Forbes as an "Israeli industrial titan," ranked 269th, with a net worth of $5.6 billion.

Other Israelis include Hollywood producer and businessman Arnon Milchan, who placed 303rd with a net worth $5.2 billion. Shari Arison, who ranked 334th with $4.9 billion, is the controlling shareholder at Bank Hapoalim and was described by the magazine as "Israel's richest woman." Real estate tycoon Yitzhak Tshuva was ranked 501st, with a net worth of $3.7 billion.

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