Negotiate Dual Citizenship for West Bank Settlers
On Sep. 24, 2026, Palestinian Authority President Mahmoud Abbas delivered a recorded video address to the UN General Assembly in which he stated, “We seek a democratic Palestinian state that respects the rule of law and human rights, a non-militarized state that lives in security and peace alongside the state of Israel.”
His statement is an invitation to Israel to draft contingency plans in anticipation of the future creation of an independent state of Palestine. In the light of world opinion, Israel would be foolish to continue burying its head in the sand by pretending that such an event will never occur. One outstanding issue will be to negotiate the possibility of future dual citizenship for the Jewish settlers living in the West Bank. However, before such negotiations can begin, the government of Israel must take firm measures to ensure that no further acts of violence against Palestinian civilians will ever be perpetrated by any West Bank settlers. Furthermore, all perpetrators of such violence must be vigorously prosecuted.
Firstly, it is helpful to estimate the motivations of the roughly 500,000 West Bank settlers. Those motivated primarily by financial incentives can be lured back to Israel by more attractive financial incentives. Those motivated primarily by a desire to be close to Jewish holy sites will be more reluctant to abandon the West Bank.
The Israel Policy Forum estimates that about two-thirds, or 340,000, of the Jews living in the West Bank are motivated largely by economic factors, such as cheap real estate, government tax incentives, larger homes, and easy commutes to Tel Aviv or West Jerusalem. Therefore, about one-third, or 160,000, of the Jews living in the West Bank are motivated by religious attachment to the land.
An Israeli citizen can legally hold dual citizenship in any country not designated as an enemy state. As long as the second country also permits dual nationality, Israeli law fully accommodates holding both passports. To draft a proposal for how an Israeli dual citizen living in the West Bank of a sovereign state of Palestine might be taxed, it is interesting to look at how an Israeli dual citizen who lives in the United States is taxed. A dual citizen of both Israel and the United States, who lives in the United States, does not pay income taxes on the same money to both countries, but must strictly follow the tax laws of both countries. Because this individual is a U.S. citizen living in the United States, the U.S. government taxes this person on worldwide income. Conversely, Israel taxes individuals primarily based on residency, not citizenship. Since this individual’s permanent home is in America, this individual is considered a non-resident for Israeli tax purposes.
An independent state of Palestine might find this model for dual citizenship attractive. Of course, Palestinian citizens of Israel might also apply for dual citizenship in a new state of Palestine.
