Rights, Grants & Tax Benefits for New Olim

Making Aliyah brings with it a wide range of financial and practical benefits designed to help new immigrants settle successfully into Israeli society. These rights are collectively known as Zchuyot La’Oleh **(immigrant entitlements). They are administered primarily by the **Ministry of Aliyah and Integration, the Ministry of Finance, and **Bituach Leumi **(National Insurance Institute).

Below is a complete overview of what new Olim are entitled to, how long each benefit lasts, and what to watch out for.

1.  The “Sal Klita” (Absorption Basket)

Every Oleh Hadash receives a financial grant called the **Sal Klita **— a living allowance designed to support the first few months in Israel. It is paid in several installments directly into the Oleh’s Israeli bank account. The amount depends on family size and composition.

Typically, the first payment is made in cash at the airport upon arrival, with the remaining funds divided into monthly payments over roughly six months. In order to continue receiving it, you must register with your local **Ministry of Aliyah and Integration **office, provide your Israeli bank account details, and usually attend Ulpan (Hebrew) studies.

This grant is intended to cover basic expenses like rent, utilities, transportation, and food during the early stages of resettlement. After the Sal Klita period ends, most Olim transition to other forms of assistance such as rental subsidies and tax discounts.

2.  Free Hebrew Language Courses (Ulpan)

New immigrants are entitled to a free intensive Hebrew course (Ulpan). This is a cornerstone of integration. The course typically lasts around five months on a full-time schedule or longer on a part-time basis.

Olim can start Ulpan anytime within the first ten years after making Aliyah. In addition to free tuition, some Ulpan students — especially those who receive Sal Klita — may also get a small living allowance during the course.

Attending and completing Ulpan not only improves language skills but is also often a prerequisite for receiving other benefits such as certain housing subsidies or vocational grants.

3.  Municipal Property Tax Discount (Arnona)

Olim Hadashim are eligible for a significant discount on Arnona, Israel’s municipal property tax. This discount usually applies for the first 12 months after Aliyah, sometimes extendable to 24 months depending on the municipality.

The typical reduction ranges from 70% to 100% on a defined portion of your apartment’s area. You can claim the discount whether you rent or own your home. The process requires presenting your Teudat Oleh (immigration certificate) at the local municipality office and applying within the first 90 days of arrival.

4.  Rent Subsidy (Siua B’sachirut)

After the Sal Klita period ends, Olim can receive a **monthly rent subsidy **to help with housing costs. The subsidy amount depends on family size, geographic location, and length of time since Aliyah.

Typically, it begins around the seventh or eighth month after arrival and can continue for several years, gradually decreasing over time. Olim who settle in designated “development areas” or peripheral regions sometimes receive higher payments or extended duration.

This subsidy is paid through the Ministry of Construction and Housing and is transferred directly into the Oleh’s bank account after registration.

5.  Reduced Purchase Tax and Mortgage Assistance

Olim Hadashim are entitled to **reduced property purchase tax **(Mas Rechisha) when buying their first residential home in Israel. Normally, Israeli citizens pay a sliding-scale purchase tax, but Olim pay at a reduced rate, provided the home is purchased as their primary residence within a set time frame (usually within seven years of making Aliyah).

In addition, Olim may qualify for **mortgage assistance **through government-backed loans with preferential interest rates. These loans are available through banks that participate in the Ministry of Housing’s programs. The benefit is greater for larger families or those settling in development towns and border communities.

Recent reforms limit the purchase tax discount to the first residential property only — subsequent property purchases are taxed at regular rates.

6.  Customs and Import Benefits

New Olim can bring personal belongings, household goods, furniture, and electrical appliances to Israel **duty-free **or with major tax reductions. These exemptions are generally valid for up to three years after the date of Aliyah.

You are also allowed to import **one new or used car **at a reduced customs duty and purchase tax rate. The vehicle must be imported under your name and remain registered to you for several years (usually five). If you sell it earlier, you must pay the taxes retroactively.

These benefits are meant to help Olim relocate comfortably and avoid double taxation on personal items they already owned abroad.

7.  Free or Subsidized Health Coverage

Israel’s National Insurance (Bituach Leumi) provides free or heavily subsidized health coverage for new immigrants. Olim who are unemployed or not yet earning income can receive up to twelve months of health insurance at no cost, covered by the Ministry of Aliyah and Integration.

Those who begin working contribute to the regular health insurance system through payroll deductions like all residents. Every Oleh must register with one of Israel’s four health funds (Kupot Holim) — Clalit, Maccabi, Meuhedet, or Leumit — to receive medical care.

This ensures immediate access to doctors, specialists, and emergency care without long waiting periods or large upfront costs.

8.  Education and Tuition Benefits

Olim Hadashim under the age of 30, and sometimes older students in special cases, are eligible for **tuition discounts **at Israeli universities and colleges. The benefit typically covers a large portion of first-degree tuition and sometimes extends to master’s programs.

Additional grants may be available for academic excellence, community volunteering, or military/ national service participation. The Council for Higher Education and Student Authority manage these programs.

Children of Olim also receive free education in public schools and may get additional Hebrew tutoring and psychological or social support as part of their absorption process.

9.  Employment and Business Support

The Ministry of Aliyah and Integration operates special employment centers (Taasukah) **to assist Olim in finding jobs matching their skills. Olim can also receive **career retraining courses, certification recognition assistance, and even grants for opening small businesses.

Professionals such as doctors, lawyers, architects, and teachers can apply for help getting their foreign qualifications recognized in Israel. Certain industries also offer mentorship programs to ease the transition into the Israeli labor market.

10.  Income Tax Credits for Olim

In addition to general tax benefits available to all residents, Olim Hadashim enjoy **extra personal tax credits **(known as Nikudot Zikuy). These credits reduce the total amount of income tax owed on Israeli-sourced income.

The benefit is structured to gradually decline over time. For example, during the first 18 months after Aliyah, an Oleh receives the full extra credit, which is then reduced for the following 18 months and again in the final 12 months. Overall, this usually provides a tax reduction for about 3½ to 4½ years.

It is essential to inform your employer and present your Teudat Oleh to ensure these credits are applied automatically through payroll.

11.  Ten-Year Exemption on Foreign Income and Assets

One of the most significant financial benefits is the ten-year exemption from Israeli taxation on foreign income and capital gains. This means that for the first ten years after Aliyah, Olim do not pay Israeli tax on income generated outside of Israel — including dividends, rents, pensions, capital gains, and business income — provided it originates abroad.

Until the end of 2025, this exemption also includes **a full exemption from reporting **foreign income and assets. However, starting in 2026, new Olim will still enjoy the exemption from tax but will be required to report their global income and holdings to the Israel Tax Authority.

The 10-year exemption applies automatically from the date of Aliyah, but you must maintain documentation showing that the income originates abroad in case of future review.

12.  The “Adjustment Year” (Shnat Histaglut)

New Olim may choose to declare their first year in Israel as an adjustment year. During this period, they are treated as if they are not yet Israeli tax residents, meaning that foreign income remains outside the scope of Israeli taxation.

To benefit, you must apply within 90 days of arrival. The adjustment year gives flexibility for those who still have foreign assets or businesses and need time to restructure their affairs before becoming fully tax-resident in Israel.

13.  Special Support for Families, Lone Olim, and Seniors

ï           **Families with children **may receive additional child allowances through Bituach Leumi.

ï           **Lone Olim (Olim Bodedim) **— immigrants without immediate family in Israel — are eligible for extra grants and dedicated social worker support.

ï           **Senior citizens **who make Aliyah after retirement age are entitled to healthcare coverage and national insurance benefits, even if they do not enter the workforce.

These benefits ensure that vulnerable groups receive tailored assistance for successful absorption.

14.  Vocational and Small Business Grants

The Ministry of Aliyah and Integration provides grants and loans for Olim wishing to start or expand small businesses. Eligible applicants must present a business plan and prove basic financial management capability.

This program helps many new immigrants establish self-employment ventures, such as consultancy, retail, or service-based work, bridging gaps until full integration into the Israeli economy.

15.  Transportation, Culture, and Miscellaneous Benefits

Olim Hadashim can access a range of smaller but useful benefits, such as:

ï           Reduced public transportation fares in the first year

ï           Discounts on driving license conversion and vehicle registration

ï           Cultural vouchers for museums and events

ï           Reduced fees for certain government services and certifications

These perks help offset the small but recurring costs of daily life in a new country.

 Practical Considerations and Tax Planning

**1.        Timing matters: **The date you officially make Aliyah (the date on your Teudat Oleh) starts all benefit clocks — Sal Klita, tax exemption, Arnona discounts, etc.

**2.        Recordkeeping: **Keep detailed documentation of all assets and income sources abroad, even if exempt, to simplify matters after the 10-year period.

**3.        Residency rulings: **You may request a ruling from the Israel Tax Authority confirming your residency start date — crucial for people who split time between countries.

**4.        Professional advice: **Tax and property rules can be complex. Engaging an accountant familiar with international taxation and Aliyah benefits ensures you claim everything properly.

**5.        Upcoming legal change (2026): **After 2025, all new Olim must report worldwide income even though it remains tax-exempt for 10 years. Existing Olim before that date keep the current exemption.

 Summary

New Olim receive a unique combination of financial support, tax incentives, housing assistance, language training, and **integration benefits **that collectively make settling in Israel far easier. The system is designed to help newcomers become self-sufficient while protecting them from double taxation or sudden financial burdens.

Understanding each right — and when it begins or expires — is crucial for maximizing these advantages.

Would you like me to prepare a **printable checklist **summarizing all grants and benefits with the relevant time limits (for example, “apply within 90 days,” “expires after 10 years,” etc.)? It’s useful for keeping track during the first months after Aliyah.

Updated on: 01/02/2026