How much money do you need after making Aliyah to Israel
Relocating or Making Aliyah: a comprehensive cost of living guide.
If you're planning to move to Israel or considering Aliyah, one of the most important questions you'll ask is, "How much money do I need to live in Israel?" This guide offers a detailed breakdown of the cost of living, providing insights to help you budget effectively for your life in the Holy Land.
1. Cost of Housing in Israel
Housing is one of the most significant expenses in Israel. Costs vary greatly depending on location, type of property, and whether you're buying or renting.
Renting in Israel:
Tel Aviv: Rent prices in Tel Aviv are some of the highest in Israel. A one-bedroom apartment in the city center can cost between ₪5,500 and ₪8,000 (around $1,450 to $2,100). Outside the city center, prices drop to around ₪4,500 to ₪6,500 ($1,200 to $1,700).
Jerusalem: The average rent for a one-bedroom apartment in Jerusalem’s city center is ₪4,500 to ₪6,500 ($1,200 to $1,700), while prices outside the city center range from ₪3,500 to ₪5,500 ($900 to $1,500).
Haifa: Rent is more affordable, with a one-bedroom apartment in the center costing around ₪3,000 to ₪4,500 ($800 to $1,200).
Buying a Home: The cost of purchasing property in Israel can be steep, especially in major cities:
Tel Aviv: Prices per square meter can range from ₪35,000 to ₪60,000 ($9,000 to $16,000), making a typical 80-square-meter apartment cost between ₪2.8 million and ₪4.8 million ($740,000 to $1.3 million).
Jerusalem: Property prices range from ₪25,000 to ₪45,000 ($6,600 to $12,000) per square meter.
Smaller towns and suburbs are generally more affordable, with prices per square meter ranging between ₪10,000 and ₪20,000 ($2,600 to $5,300).
2. Utilities and Internet in Israel
After housing, you'll need to consider utility costs. The average monthly utility bill, which includes electricity, water, heating, and garbage collection, can cost around ₪600 to ₪1,000 ($160 to $260) for a small apartment. Internet service costs about ₪100 to ₪150 ($26 to $40) per month, depending on the speed and provider.
3. Transportation Costs in Israel
Israel has a robust public transportation system, which can help you save on commuting costs. Here’s a breakdown:
Public Transportation: A monthly pass for buses and trains costs between ₪200 and ₪300 ($52 to $80), depending on the city.
Taxis: The base fare for taxis in Israel is around ₪12 ($3), with an additional charge per kilometer.
Car Ownership: If you own a car, fuel prices in Israel are high, averaging around ₪8 to ₪9 ($2.10 to $2.40) per liter. In addition, car insurance, parking fees, and maintenance can push your monthly car expenses to around ₪1,500 to ₪2,500 ($400 to $650).
4. Groceries and Food in Israel
Grocery prices in Israel can be more expensive than in many Western countries due to high import taxes. Here’s a rough idea of common grocery items:
Milk (1 liter): ₪6 to ₪7 ($1.50 to $1.80)
Bread (500g): ₪5 to ₪7 ($1.30 to $1.80)
Eggs (12): ₪12 to ₪15 ($3.10 to $3.90)
Chicken breast (1 kg): ₪30 to ₪40 ($8 to $10.50)
Fruits and vegetables: Prices fluctuate based on seasonality but expect to pay around ₪8 to ₪12 ($2.10 to $3.10) per kilogram for common fruits like apples and oranges.
On average, a single person spends around ₪1,500 to ₪2,500 ($400 to $650) monthly on groceries, while a family of four can expect to spend between ₪4,000 and ₪6,000 ($1,000 to $1,600).
5. Healthcare Costs in Israel
Israel has a high-quality public healthcare system, and residents are required to pay into it through their monthly taxes. However, out-of-pocket costs for additional private health services can vary:
Basic health insurance (Kupat Holim) is mandatory and deducted from your paycheck at a rate of about 3% to 5% of your income.
Private health insurance is optional and can range from ₪100 to ₪400 ($26 to $105) per month, depending on the plan.
Prescription medication costs are generally low due to government subsidies, but the cost of specific treatments or procedures in private clinics can vary.
6. Education Costs in Israel
If you’re moving to Israel with children, education can also affect your budget:
Public schools are free, but additional costs for books, activities, and after-school programs can amount to around ₪2,000 to ₪5,000 ($500 to $1,300) annually.
Private schools and international schools charge tuition, which can range from ₪20,000 to ₪80,000 ($5,200 to $21,000) per year, depending on the institution.
7. Entertainment and Leisure
Israel offers a vibrant social life, but the cost of entertainment can add up:
Dining out: A meal at a mid-range restaurant costs around ₪80 to ₪150 ($21 to $40) per person.
Cinema tickets: Expect to pay ₪40 to ₪50 ($10.50 to $13) for a movie ticket.
Gym membership: Monthly memberships cost around ₪150 to ₪300 ($40 to $80).
8. Miscellaneous Expenses in Israel
In addition to the major expenses mentioned above, there are smaller but significant costs:
Clothing: Depending on your shopping preferences, clothing prices in Israel can be relatively high. A pair of jeans might cost around ₪200 to ₪300 ($52 to $80), while a summer dress from a chain store could set you back ₪150 to ₪300 ($40 to $80).
Mobile phone plans: Most plans cost between ₪50 and ₪100 ($13 to $26) per month for basic service.
Total Monthly Cost of Living in Israel
Here’s an estimate of the total monthly cost for different types of households in Israel:
Single person:
Budget lifestyle: ₪6,500 to ₪9,500 ($1,700 to $2,500)
Comfortable lifestyle: ₪9,500 to ₪13,000 ($2,500 to $3,400)
Family of four:
Budget lifestyle: ₪16,000 to ₪22,000 ($4,200 to $5,800)
Comfortable lifestyle: ₪22,000 to ₪30,000 ($5,800 to $7,900)
Conclusion: How Much Do You Need to Live in Israel?
The amount of money you’ll need to live in Israel depends largely on your lifestyle choices and where you decide to settle. Urban areas like Tel Aviv and Jerusalem are more expensive, while smaller cities and suburbs are more affordable. A single person can live comfortably on ₪9,000 to ₪13,000 ($2,500 to $3,500) per month, while a family of four would need ₪20,000 to ₪30,000 ($5,300 to $8,000) to maintain a similar standard of living.
Before making the move, it's essential to plan your budget carefully, taking into account housing, utilities, groceries, healthcare, and education costs. Understanding the financial landscape of Israel will help you make informed decisions and ensure a smoother transition into life in this dynamic and diverse country.