L | A (Translated with ChatGPT)
By Aner Chaim
In recent years, the Beersheba Municipality has invested heavily in developing infrastructure, revitalizing commercial centers, upgrading educational institutions, promoting smart city initiatives, and advancing major transportation projects such as a future light rail.
However, behind this impressive façade, the data reveals a troubling trend: more residents are leaving the city than moving into it.
According to data from the Central Bureau of Statistics (CBS), Beersheba has experienced a negative internal migration balance in recent years. In 2020, 4,500 residents moved into the city, while 5,700 left. In 2021, 4,900 moved in and 6,600 left. In 2022, 5,500 entered the city and 6,800 left, and in 2023, 4,600 residents moved in while 5,900 left. Of course, there may be various deviations from the figures presented, but these are the raw numbers.
In contrast, the Beersheba subdistrict, which includes its surrounding communities and neighboring major cities, has a positive migration balance. In 2023, for example, 21,000 residents moved into the Beersheba subdistrict, compared to 18,600 who left it. In 2022, 24,300 residents moved in, while 22,600 moved out.
It is estimated that many residents have relocated to communities where they receive a tax benefit. While in Beersheba residents no longer enjoy a tax benefit as they once did, residents of Ofakim receive a tax benefit of 18% (the highest among Negev cities, along with Arad), and residents of Dimona and Netivot receive a 16% tax benefit.
These benefits are worth tens of thousands of shekels per year, and for young couples — and not only them — it's a valuable opportunity to purchase a home in the Beersheba area, stay close to the capital of the Negev, and at the same time receive a financial incentive that significantly helps improve their quality of life.
Ofakim
A Clear Trend
At least according to the data, this is a clear and ongoing trend — not a one-time occurrence. When examining the demographic profile, those leaving include not only young adults after military service, but also established families and academics seeking a different quality of life.
Residents aren't moving far. The main destinations for those leaving Beersheba are the nearby cities: Netivot, Ofakim, and Dimona.
Established families are also moving to the satellite towns (Omer, Lehavim), although there they do not receive a tax benefit. In the other cities and communities of the Negev, residents do receive a tax benefit — including in the Bnei Shimon region (7%), Ramat Negev (10%), Yeruham (18%), Mitzpe Ramon (18%), and others. Incidentally, the highest tax benefit is granted to the communities surrounding the Gaza border area, at a rate of 20%.
The Beersheba Municipality invests significant resources in urban development: parks, high-tech complexes, entertainment areas, urban renewal projects, and an innovative district near Ben-Gurion University. Nevertheless, the city currently does not qualify for tax benefits, unlike its smaller neighboring towns.
It should also be remembered that the impressive construction boom has not bypassed the other cities in the Negev. In Netivot, Ofakim, and Dimona, skyscrapers are rising, new neighborhoods are being built, and large sums are invested in developing infrastructure, public institutions, and community projects.
While it is not on the same scale as Beersheba, it is indeed a real transformation happening in these cities, where apartment prices are also lower compared to Beersheba.
To simplify the story beyond the numbers, here is a concrete example. Maayan and Nir moved about four years ago from Beersheba to Ofakim. He works at a high-tech company operating in the “Gav Yam” area of Beersheba, and she is employed at a law firm in the Old City. Both earn very good salaries, yet they decided to leave Beersheba.
"We purchased a new four-room apartment from the developer," they share, "and thanks to the tax benefit, we save nearly 4,000 shekels a month together. It’s a very simple financial decision — this benefit takes care of our mortgage payments. Beersheba is our home and our heart, but here we have the opportunity to grow and develop as a family and save thousands of shekels along the way, which allows us to live a higher quality of life. Our parents live in Beersheba, and there’s always the possibility we’ll return, but for now, it simply doesn’t make financial sense."
The mayors of cities in the Negev are always keeping a close watch when it comes to tax benefits. When, in the past, there was a proposal for the Tax Authority to reduce the benefits granted to Dimona, the city’s mayor, Benny Biton, led a successful campaign to oppose it.
“A large part of Dimona’s success and the positive migration to the city over the past decade stems from the tax benefits that have been preserved over the years,” said Biton. “Significant tax breaks, combined with urban development and intensive cooperation with government ministries, have led to the growth Dimona has experienced in recent years.”
Righting the wrong
According to Beersheba’s mayor, Rubik Danilovich, this is a case of structural discrimination that harms the city’s competitiveness. Recently, he met with Finance Minister Bezalel Smotrich, who visited the city following the damage it suffered during the war, and emphasized to him the importance of the issue for the city’s residents.
This is an issue that has been on Danilovich’s agenda for quite some time. In the past, he reached an agreement with the Finance Ministry to reinstate the benefits, but then the Gaza war broke out. During their meeting, Danilovich called on Smotrich to return to the matter of granting the benefits as soon as possible.
According to Danilovich, he found a willing listener. "He's the only minister who, even before the war, understood our need to right the wrong - the distortion caused by the removal of the tax benefit from Beersheba’s residents. The minister received data from me about two years ago and realized there’s an anomaly that needs to be addressed. He wants to see a strong Beeersheba with half a million residents, to keep the city’s young people here and attract new populations. Right now, everyone around us gets a tax benefit - except Beersheba, which originally received 12%. Back then, the city saw positive migration. and with Mammon’s help, we will move forward on this issue, because it’s the right thing to do for the State of Israel."
Smotrich said: “We’re working on a government resolution involving a lot of money - hundreds of millions of shekels - for the development of the city as part of a major five-year plan. The mayor doesn’t let up - Beersheba will remain a strong city that supports the entire Negev region.”
What are the criteria?
A bit of history: At the beginning of the decade, the Knesset approved the Negev Laws, which, among other things, included granting a 12% tax benefit to Beersheba residents, based on their salary level.
During the two years the Negev Laws were in effect - until the late Prime Minister Ariel Sharon and then-Finance Minister Benjamin Netanyahu decided to revoke them - Beersheba residents benefited from a significant reduction in the income tax they were required to pay.
Residents of Negev communities who currently enjoy tax benefits do not receive them under the Negev Laws, which were canceled about two decades ago, but rather under other laws passed by the Knesset over the years. These benefits are granted to residents of these communities either because of their proximity to the security fence with the Gaza Strip, for example, or because they are defined as settlements located in areas of national priority, or due to their socio-economic ranking.
One of the Knesset members who has tried to promote the return of tax benefits to Be’er Sheva is Almog Cohen, who said this week:“Tax benefits for Be’er Sheva are at the core of my work, as part of my concern for the future of the Negev metropolitan area, and I continue to work with the relevant authorities to advance this initiative. The Negev, which has stood firm on the frontlines since the beginning of the Gaza war, is the future of the State of Israel, and that is what I am fighting for. Now watch this drive.”
National responsibility
So what’s next? Beersheba stands at a critical crossroads: on one hand, it continues to flourish and grow physically, but on the other hand, it is losing residents to places where the economic benefits are simply more worthwhile.
For Beersheba, the IDF’s move south is a game changer. Thousands of career soldiers are expected to relocate to the city in the future, but the municipality understands that it must retain the local population - and this can primarily be achieved through economic incentives.
Beersheba City Council member Tzach Barak said this week: “There is no doubt that Beersheba has made great progress in recent years, but this progress cannot come at the expense of the state’s responsibility toward its residents. Negative migration to cities that do receive tax benefits is a direct result of an expanding economic gap. Restoring the tax benefit to Beersheba is not only the right move; it is essential to retain the young population, strengthen the middle class, encourage local entrepreneurship, and establish the city as the capital of the Negev. A country that wants a strong south must also truly invest in it.”
“If the state doesn’t wake up and grant tax benefits to Beersheba,” says another council member this week, “it risks losing not only a developing city but the main settlement anchor in the south.”
In response, the Beersheba Municipality stated:
“Mayor Rubik Danilovich is consistently working with the Finance Minister and decision-makers to reinstate the tax benefits for Beersheba residents, collaborating with Knesset members, city council members, public opinion leaders, and representatives from all political parties in the Knesset. In September 2023, an agreement was reached with Finance Minister Bezalel Smotrich to restore the benefit. However, following the memorial events in October and the Gaza war, implementation of the plan was put on hold.
Now, the mayor has resumed addressing the issue together with Deputy Minister and MK Almog Cohen, as well as other public officials, demanding the agreement be implemented promptly as part of a comprehensive effort to strengthen Beersheba, the capital of the Negev and the southern metropolitan area.
Recently, during the Finance Minister’s visit to the city and a meeting with the mayor, it was agreed that a comprehensive multi-year plan to support and reinforce Beersheba will be submitted for government approval.
Strengthening Beersheba is a high national priority and must be reflected through tangible benefits that will strengthen the city, attract young families, and preserve the existing human capital to support the city’s ongoing growth. Tax benefits have proven in the past to be a critical factor influencing residents’ decisions whether to move to the city or continue living there.”
The municipality further stated: "It is important to emphasize that alongside the ongoing efforts, the mayor and the Beersheba municipality are working to strengthen the city by attracting companies and entrepreneurs, bolstering the healthcare system (including the establishment of a new hospital in addition to the recently opened ‘Assuta’), investing in education, revitalizing public spaces, promoting urban renewal, developing new neighborhoods, and making significant investments in culture, entertainment, and leisure. Restoring the tax benefit will increase Beersheba’s appeal. This is a national mission and a matter of state interest."
By Aner Chaim
In recent years, the Beersheba Municipality has invested heavily in developing infrastructure, revitalizing commercial centers, upgrading educational institutions, promoting smart city initiatives, and advancing major transportation projects such as a future light rail.
However, behind this impressive façade, the data reveals a troubling trend: more residents are leaving the city than moving into it.
According to data from the Central Bureau of Statistics (CBS), Beersheba has experienced a negative internal migration balance in recent years. In 2020, 4,500 residents moved into the city, while 5,700 left. In 2021, 4,900 moved in and 6,600 left. In 2022, 5,500 entered the city and 6,800 left, and in 2023, 4,600 residents moved in while 5,900 left. Of course, there may be various deviations from the figures presented, but these are the raw numbers.
In contrast, the Beersheba subdistrict, which includes its surrounding communities and neighboring major cities, has a positive migration balance. In 2023, for example, 21,000 residents moved into the Beersheba subdistrict, compared to 18,600 who left it. In 2022, 24,300 residents moved in, while 22,600 moved out.
It is estimated that many residents have relocated to communities where they receive a tax benefit. While in Beersheba residents no longer enjoy a tax benefit as they once did, residents of Ofakim receive a tax benefit of 18% (the highest among Negev cities, along with Arad), and residents of Dimona and Netivot receive a 16% tax benefit.
These benefits are worth tens of thousands of shekels per year, and for young couples — and not only them — it's a valuable opportunity to purchase a home in the Beersheba area, stay close to the capital of the Negev, and at the same time receive a financial incentive that significantly helps improve their quality of life.
Ofakim
A Clear Trend
At least according to the data, this is a clear and ongoing trend — not a one-time occurrence. When examining the demographic profile, those leaving include not only young adults after military service, but also established families and academics seeking a different quality of life.
Residents aren't moving far. The main destinations for those leaving Beersheba are the nearby cities: Netivot, Ofakim, and Dimona.
Established families are also moving to the satellite towns (Omer, Lehavim), although there they do not receive a tax benefit. In the other cities and communities of the Negev, residents do receive a tax benefit — including in the Bnei Shimon region (7%), Ramat Negev (10%), Yeruham (18%), Mitzpe Ramon (18%), and others. Incidentally, the highest tax benefit is granted to the communities surrounding the Gaza border area, at a rate of 20%.
The Beersheba Municipality invests significant resources in urban development: parks, high-tech complexes, entertainment areas, urban renewal projects, and an innovative district near Ben-Gurion University. Nevertheless, the city currently does not qualify for tax benefits, unlike its smaller neighboring towns.
It should also be remembered that the impressive construction boom has not bypassed the other cities in the Negev. In Netivot, Ofakim, and Dimona, skyscrapers are rising, new neighborhoods are being built, and large sums are invested in developing infrastructure, public institutions, and community projects.
While it is not on the same scale as Beersheba, it is indeed a real transformation happening in these cities, where apartment prices are also lower compared to Beersheba.
To simplify the story beyond the numbers, here is a concrete example. Maayan and Nir moved about four years ago from Beersheba to Ofakim. He works at a high-tech company operating in the “Gav Yam” area of Beersheba, and she is employed at a law firm in the Old City. Both earn very good salaries, yet they decided to leave Beersheba.
"We purchased a new four-room apartment from the developer," they share, "and thanks to the tax benefit, we save nearly 4,000 shekels a month together. It’s a very simple financial decision — this benefit takes care of our mortgage payments. Beersheba is our home and our heart, but here we have the opportunity to grow and develop as a family and save thousands of shekels along the way, which allows us to live a higher quality of life. Our parents live in Beersheba, and there’s always the possibility we’ll return, but for now, it simply doesn’t make financial sense."
The mayors of cities in the Negev are always keeping a close watch when it comes to tax benefits. When, in the past, there was a proposal for the Tax Authority to reduce the benefits granted to Dimona, the city’s mayor, Benny Biton, led a successful campaign to oppose it.
“A large part of Dimona’s success and the positive migration to the city over the past decade stems from the tax benefits that have been preserved over the years,” said Biton. “Significant tax breaks, combined with urban development and intensive cooperation with government ministries, have led to the growth Dimona has experienced in recent years.”
Righting the wrong
According to Beersheba’s mayor, Rubik Danilovich, this is a case of structural discrimination that harms the city’s competitiveness. Recently, he met with Finance Minister Bezalel Smotrich, who visited the city following the damage it suffered during the war, and emphasized to him the importance of the issue for the city’s residents.
This is an issue that has been on Danilovich’s agenda for quite some time. In the past, he reached an agreement with the Finance Ministry to reinstate the benefits, but then the Gaza war broke out. During their meeting, Danilovich called on Smotrich to return to the matter of granting the benefits as soon as possible.
According to Danilovich, he found a willing listener. "He's the only minister who, even before the war, understood our need to right the wrong - the distortion caused by the removal of the tax benefit from Beersheba’s residents. The minister received data from me about two years ago and realized there’s an anomaly that needs to be addressed. He wants to see a strong Beeersheba with half a million residents, to keep the city’s young people here and attract new populations. Right now, everyone around us gets a tax benefit - except Beersheba, which originally received 12%. Back then, the city saw positive migration. and with Mammon’s help, we will move forward on this issue, because it’s the right thing to do for the State of Israel."
Smotrich said: “We’re working on a government resolution involving a lot of money - hundreds of millions of shekels - for the development of the city as part of a major five-year plan. The mayor doesn’t let up - Beersheba will remain a strong city that supports the entire Negev region.”
What are the criteria?
A bit of history: At the beginning of the decade, the Knesset approved the Negev Laws, which, among other things, included granting a 12% tax benefit to Beersheba residents, based on their salary level.
During the two years the Negev Laws were in effect - until the late Prime Minister Ariel Sharon and then-Finance Minister Benjamin Netanyahu decided to revoke them - Beersheba residents benefited from a significant reduction in the income tax they were required to pay.
Residents of Negev communities who currently enjoy tax benefits do not receive them under the Negev Laws, which were canceled about two decades ago, but rather under other laws passed by the Knesset over the years. These benefits are granted to residents of these communities either because of their proximity to the security fence with the Gaza Strip, for example, or because they are defined as settlements located in areas of national priority, or due to their socio-economic ranking.
One of the Knesset members who has tried to promote the return of tax benefits to Be’er Sheva is Almog Cohen, who said this week:“Tax benefits for Be’er Sheva are at the core of my work, as part of my concern for the future of the Negev metropolitan area, and I continue to work with the relevant authorities to advance this initiative. The Negev, which has stood firm on the frontlines since the beginning of the Gaza war, is the future of the State of Israel, and that is what I am fighting for. Now watch this drive.”
National responsibility
So what’s next? Beersheba stands at a critical crossroads: on one hand, it continues to flourish and grow physically, but on the other hand, it is losing residents to places where the economic benefits are simply more worthwhile.
For Beersheba, the IDF’s move south is a game changer. Thousands of career soldiers are expected to relocate to the city in the future, but the municipality understands that it must retain the local population - and this can primarily be achieved through economic incentives.
Beersheba City Council member Tzach Barak said this week: “There is no doubt that Beersheba has made great progress in recent years, but this progress cannot come at the expense of the state’s responsibility toward its residents. Negative migration to cities that do receive tax benefits is a direct result of an expanding economic gap. Restoring the tax benefit to Beersheba is not only the right move; it is essential to retain the young population, strengthen the middle class, encourage local entrepreneurship, and establish the city as the capital of the Negev. A country that wants a strong south must also truly invest in it.”
“If the state doesn’t wake up and grant tax benefits to Beersheba,” says another council member this week, “it risks losing not only a developing city but the main settlement anchor in the south.”
In response, the Beersheba Municipality stated:
“Mayor Rubik Danilovich is consistently working with the Finance Minister and decision-makers to reinstate the tax benefits for Beersheba residents, collaborating with Knesset members, city council members, public opinion leaders, and representatives from all political parties in the Knesset. In September 2023, an agreement was reached with Finance Minister Bezalel Smotrich to restore the benefit. However, following the memorial events in October and the Gaza war, implementation of the plan was put on hold.
Now, the mayor has resumed addressing the issue together with Deputy Minister and MK Almog Cohen, as well as other public officials, demanding the agreement be implemented promptly as part of a comprehensive effort to strengthen Beersheba, the capital of the Negev and the southern metropolitan area.
Recently, during the Finance Minister’s visit to the city and a meeting with the mayor, it was agreed that a comprehensive multi-year plan to support and reinforce Beersheba will be submitted for government approval.
Strengthening Beersheba is a high national priority and must be reflected through tangible benefits that will strengthen the city, attract young families, and preserve the existing human capital to support the city’s ongoing growth. Tax benefits have proven in the past to be a critical factor influencing residents’ decisions whether to move to the city or continue living there.”
The municipality further stated: "It is important to emphasize that alongside the ongoing efforts, the mayor and the Beersheba municipality are working to strengthen the city by attracting companies and entrepreneurs, bolstering the healthcare system (including the establishment of a new hospital in addition to the recently opened ‘Assuta’), investing in education, revitalizing public spaces, promoting urban renewal, developing new neighborhoods, and making significant investments in culture, entertainment, and leisure. Restoring the tax benefit will increase Beersheba’s appeal. This is a national mission and a matter of state interest."
