What is the difference between Israeli permanent residency and Israeli citizenship?

A permanent resident (toshav keva) has the right to live and work in Israel indefinitely, receives full National Insurance (Bituach Leumi) and health fund (Kupat Holim) coverage, and pays taxes as a resident. However, a permanent resident cannot vote in national elections, cannot hold an Israeli passport, and cannot stand for the Knesset. Israeli citizenship, obtained through the Law of Return, naturalization under Section 5 of the Citizenship Law 5712-1952, or birth, gives all those additional rights.

Critically, citizenship is almost impossible to lose by living abroad, whereas permanent residency can be revoked if PIBA determines the holder's centre of life has shifted outside Israel. The naturalization path for non-Jews typically requires 5 years of lawful residence, language competency, and renunciation of prior citizenship in most cases. For more detail, see Permanent Residency in Israel: How Foreign Nationals Qualify and Apply.