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How Much Does Making Aliyah Cost?

Bank Notes

Making Aliyah is a life-changing step — but it’s also one that requires smart financial planning.

 

From flights and rent to health insurance and setting up your new home, understanding the real costs can help you budget better and take advantage of the benefits available to new Olim.

Initial Expenses

Flights and Shipping
If you’re approved through The Jewish Agency or Nefesh B’Nefesh, your flight is often covered. However, you might still pay for extra luggage, movers, or storage.

Temporary Housing
Many Olim start out in rented apartments or absorption centers. Expect higher rent in cities like Jerusalem or Tel Aviv and lower prices in areas like Be’er Sheva, Ashkelon, or Carmiel.

Basic Setup
Appliances, furniture, and utility setup can add a few thousand shekels in the first months. Buying secondhand on sites like Yad2 or Facebook Marketplace can help you save.

Tip: Bring essentials like linens and small appliances in your shipment —                 imported versions in Israel can be expensive.

Ongoing Monthly
Costs

Rent and Utilities
Average rent for a small apartment can range from ₪3,000–₪5,000 in affordable cities and ₪6,000–₪8,000+ in central areas. Add roughly ₪500–₪1,000 for utilities, water, and internet.

Groceries and Daily Life
A single person may spend around ₪1,000–₪2,000 per month on food, transport, and personal expenses. Families will need more, depending on location and lifestyle.

 

Transportation

Public transportation is reliable and discounted for Olim, seniors, and students. If you buy a car, you’ll normally pay Purchase Tax (מס רכוש – Mas Rechush), a significant cost that can nearly double the price of a used vehicle —

but Olim are eligible for a reduced rate or exemption if they apply within three years of making aliyah.

Tip: Many new Olim start without a car — Israel’s trains and bus systems are well-connected, and city parking is limited.

Sal Klita (Absorption Basket)
Every new Oleh receives a grant and monthly payments during the first six months.
 

Rental Assistance
You may qualify for rent subsidies (Dmei Schirut) for up to five years, depending on family size and location.

 

Tax Benefits
Olim are eligible for tax breaks on income earned abroad, as well as reduced customs tax on importing personal belongings.

 

Banking and Currency Transfers
Opening an Israeli bank account is essential for receiving benefits and transferring funds from abroad. Check for international fees and currency exchange rates before you move money.

Tip 1:  If you receive a pension from another country, check for bilateral agreements with Israel that may help you avoid double taxation.
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Tip 2:  Discover all the benefits you're entitled to – click here to read more.

Financial Assistance for Olim

Health and Insurance Costs

All new Olim are entitled to free basic health coverage through one of Israel’s Kupot Cholim (health funds).

You can later upgrade to supplementary insurance for wider coverage or private specialists.



 

Tip 1: Bring your medical records and prescriptions from abroad — it helps             when transferring care to Israeli doctors.

Tip 2:  Click on each Kupat HolimClalit, Maccabi, Meuhedet, or                      Leumit — to see which one best fits your needs.

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Final
      Tip

Living costs in Israel can be higher than expected, especially for housing and groceries.

 

Track your spending carefully and take advantage of all Olim benefits and discounts available. Planning ahead will help you settle comfortably and avoid surprises.

Have questions about Aliyah?

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DISCLAIMER

AllAboutAliyah provides information for general guidance only and does not offer legal, financial, or professional advice. Information may change, and individual circumstances vary. You should always consult a qualified professional or the relevant authorities before making decisions based on this content. AllAboutAliyah does not guarantee the accuracy or completeness of the information and is not responsible for any outcomes resulting from its use. For details on how we handle personal information, to review our Privacy Policy please click here.

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