"The knesset (parliament) passed on its second and third readings the Entry into Israel bill," it said in a statement.
"A visa will not be granted nor a residence permit of any kind to any person who is not an Israeli citizen or permanent resident if he, or the organisation or body in which he is active, has knowingly issued a public call to boycott the state of Israel or pledged to take part in such a boycott," a statement said.
Israel has been faced with a boycott movement over its nearly 50-year occupation of the West Bank but it has lately intensified the diplomatic and legal fight against it.
The Boycott, Divestment and Sanctions (BDS) movement campaigns for a global boycott of Israel until, among other demands, the country withdraws from all occupied Palestinian territories.
RECOMMENDED STORIES
Israeli inquiry slams Netanyahu for flawed decision-making in 2014 Gaza war
Israel sees the movement as a strategic threat and accuses it of anti-Semitism - a claim BDS denies.
Haaretz newspaper said that the wording of the new law left open the possibility that it could be used against Palestinians living in Israel as temporary residents, while their applications for permanent residence were being considered.
Such a process is required by Palestinians seeking right of abode with their Israeli Arab spouses.
Last year Israeli authorities refused to renew the travel documents of prominent BDS campaigner Omar Barghouti.
His family are Palestinian but he was born in the Gulf state of Qatar.
He is married to an Israeli-Arab and as such has permanent resident status, although not full citizenship.
But Interior Minister Aryeh Deri has been considering revoking Barghouti's residence permit, the ministry has said.
