How To Budget For Aliyah

1. Initial Costs Before Making Aliyah

Flights to Israel

• Oleh Benefits: Nefesh B’Nefesh often coordinates with the Jewish Agency to cover flight costs for new immigrants (Olim). This applies to direct family members and can save a substantial amount.

• Independent Flights: If you don’t qualify for the free flight or want to travel earlier, you’ll need to budget. Costs can vary:

  • Economy class: Around $500 - $1,200 depending on season and origin.

  • Business class: Typically $2,500+, but less common for Aliyah flights.

Shipping Belongings

• Full Container: If you plan to bring a significant amount of furniture, cars, and other household goods, consider shipping through a full container:

  • A 20-foot container typically costs $3,000 - $6,000.

  • A 40-foot container ranges from $5,000 to $10,000 depending on your location and the shipping company.

• Partial Shipping: You can also opt for partial container services if you’re not moving an entire household, reducing your costs.

• Important Considerations:

  • Israel has customs exemptions for new immigrants, meaning many personal items like furniture, appliances, and vehicles may enter duty-free, provided they’re for personal use.

Storage Fees (If Needed)

• If you choose to ship your items before you find permanent accommodation, you might need to pay for storage in Israel, which could cost anywhere from ₪300 to ₪1,000 ($80 - $250) per month depending on the size and location.

Legal Fees and Documentation

• Notarization and Translations: Certain documents, like marriage certificates, birth certificates, and professional qualifications, may need to be officially translated or notarized. Fees for translations are typically around ₪100 - ₪200 ($25 - $50) per document.

• Legal Consultations: If you need assistance with visas or other legal matters, a lawyer may charge ₪500 - ₪2,000($130 - $500) per session.

2. Initial Living Costs in Israel

Short-Term Accommodation (Hotels/Airbnb)

• You may need temporary housing while searching for a permanent home. This could include:

  • Hotels: Expect to pay around ₪250 - ₪700 ($65 - $180) per night for a mid-range hotel in cities like Tel Aviv or Jerusalem.

  • Airbnb: Monthly rentals on Airbnb could range from ₪6,000 - ₪12,000 ($1,600 - $3,100), depending on the city and season.

Permanent Housing Costs (Renting or Buying)

Renting a Home

• Tel Aviv: Rents are highest in Tel Aviv. A 2-bedroom apartment can cost ₪6,500 - ₪10,000 ($1,600 - $2,600) per month.

• Jerusalem: A 2-bedroom apartment typically costs ₪5,000 - ₪9,000 ($1,300 - $2,300) per month, depending on the neighborhood.

• Smaller Cities (Haifa, Be’er Sheva, Rishon LeZion): Expect to pay ₪3,000 - ₪5,500 ($770 - $1,400) for a similar-sized apartment.

Buying a Home

If you plan to purchase property, prepare for the following costs:

• Average price per square meter in Tel Aviv: ₪40,000 - ₪60,000 ($10,000 - $15,000).

• In Jerusalem: Prices range from ₪30,000 - ₪50,000 ($8,000 - $13,000) per square meter.

• In Haifa or Be’er Sheva: The price per square meter drops to around ₪10,000 - ₪20,000 ($2,600 - $5,200).

In addition to the price of the home:

• Purchase tax: Typically 3-5% of the home’s value for new immigrants.

• Lawyer fees: Range from ₪8,000 to ₪20,000 ($2,000 - $5,000), depending on the complexity of the transaction.

Utilities (Electricity, Gas, Water, Internet)

Monthly utility bills can vary, but here’s an average breakdown:

• Electricity: ₪250-₪500 ($65 - $130) per month, depending on the season.

• Water: ₪100-₪200 ($25 - $50) per month.

• Gas (if applicable): ₪100-₪200 ($25 - $50) per month.

• Internet and Mobile Plans:

  • Internet: Around ₪100-₪150 ($26 - $40) per month for high-speed broadband.

  • Mobile: Unlimited data and talk plans range from ₪50 - ₪100 ($13 - $26) per month.

3. Daily Living Costs

Groceries

Monthly grocery costs depend on your family size, but here are typical expenses for a family of four:

• Basic staples (bread, milk, eggs, vegetables, rice) can cost ₪1,500 - ₪2,500 ($400 - $650) per month.

• Imported goods or specialty foods may increase your grocery bills.

Dining Out

• A basic meal at a casual restaurant costs around ₪50 - ₪100 ($13 - $26) per person.

• Fine dining can cost ₪150 - ₪300 ($40 - $80) per person.

4. Healthcare Costs

Public Healthcare (Kupat Holim)

Israel’s public healthcare system is subsidized through national insurance. For new Olim:

• First year’s health insurance is often free if you are unemployed or not yet working. Afterward, you’ll pay a small contribution through your salary (approximately 3-5% of your salary).

Kupat Holim Choices: There are four health funds to choose from:

• Clalit

• Maccabi

• Meuhedet

• Leumit

Private Health Insurance

If you prefer supplementary or private insurance (for dental, vision, or quicker access to specialists), monthly premiums range from ₪50 - ₪300 ($13 - $80) per person, depending on coverage.

5. Transportation

Public Transportation

• A monthly Rav Kav card for unlimited travel by bus or train costs about ₪213 - ₪255 ($55 - $65) depending on the city.

Buying a Car

Owning a car in Israel is expensive due to high taxes:

• New cars: Range from ₪100,000 to ₪200,000 ($26,000 to $52,000).

• Used cars: Can be significantly cheaper but still cost more than in many countries due to high taxes and customs.

• Car insurance: Expect to pay between ₪4,000 to ₪8,000 ($1,000 to $2,000) annually for comprehensive coverage.

Gas Prices

Fuel costs are higher in Israel, around ₪7.50 - ₪8.50 ($2.00 - $2.25) per liter. Depending on usage, monthly fuel costs could range between ₪500 - ₪1,000 ($130 - $260).

6. Leveraging Oleh Benefits and Government Assistance

Sal Klita (Absorption Basket)

This government assistance helps new immigrants with living expenses for the first 6-12 months:

• Single Olim: Receive around ₪18,000 - ₪24,000 ($4,600 - $6,200) in total over several installments.

• Families: Receive more, depending on the number of children and family size.

Arnona (Municipal Tax) Discounts

Olim can receive discounts of 70-90% on property taxes (Arnona) for the first year, depending on income and family size. For example:

• Tel Aviv: Full Arnona for a 2-bedroom apartment is ₪2,000 - ₪4,000 ($520 - $1,050) per year.

• Jerusalem: Costs are slightly lower, ranging from ₪1,500 - ₪3,000 ($400 - $780) per year.

Tax Breaks for Olim

New immigrants are eligible for 10 years of tax exemptions on foreign income (such as investments or rental income). Additionally, income tax reductions on salary are granted for 3.5 years.

Customs Exemptions

Olim benefit from duty-free import of personal goods such as household items and vehicles within the first 3 years of Aliyah. This can reduce the cost of shipping or purchasing certain items dramatically.

7. Long-Term Financial Planning

Employment

• Salaries in Israel vary widely by industry, but the tech sector offers some of the highest wages, with average monthly salaries around ₪20,000 to ₪30,000 ($5,200 - $7,800).

• Oleh Employment Assistance: There are specific programs like Nefesh B'Nefesh’s employment workshops, which connect Olim to potential jobs, offer CV advice, and help you navigate the Israeli job market.

Pensions and Retirement

Israel has mandatory pension contributions for employees. Around 6-10% of your salary will go into pension savings, which ensures you have funds for retirement.

Budgeting for Aliyah requires careful planning, but with the right preparation, you can manage the transition smoothly. By leveraging government benefits, minimizing unnecessary costs, and planning for long-term expenses, you can ensure a successful financial start in Israel.