Benefits for New Immigrants to Israel

When you step off the plane at Ben Gurion Airport as a new immigrant to Israel, you're not stepping into the unknown alone. The State of Israel has built an extensive support system for Olim Chadashim, offering financial assistance, tax benefits, and practical help that can be worth hundreds of thousands of shekels over your first decade in the country. Understanding these benefits and using them wisely can make the difference between a struggling transition and a successful new beginning.

The support starts immediately. At the airport, you'll visit the Ministry of Aliyah and Integration office and receive your first payment from the Sal Klita, the absorption basket that provides crucial funds during your initial months. This isn't a one-time payment. Over the next six months, you'll receive monthly deposits directly into your Israeli bank account, with the total amount determined by your age and family status. These payments help cover rent, food, and basic expenses while you find your footing in a new country, learn the language, and begin looking for work.

After those first six months, housing assistance takes over. The Ministry of Housing provides rental subsidies beginning in your seventh or eighth month, depending on when you made Aliyah. This support can continue for up to 30 months, helping bridge the gap between your initial arrival and full economic independence. The amount you receive depends on your family size, where you choose to live, and how long you've been in Israel. If you settle in national priority areas, the Negev, or the Galilee, you'll receive additional assistance as part of the government's effort to strengthen these regions. For families where neither spouse has found work after the Sal Klita ends, there's also the Dmei Kiyum living allowance to provide continued support.

The financial benefits are significant, but they pale in comparison to the tax advantages available to new immigrants. At the center of this package sits a remarkable benefit that sets Israel apart: a complete 10-year exemption on all foreign income. For a full decade after making Aliyah, you won't pay Israeli taxes on dividends from foreign stocks, interest from overseas bank accounts, rental income from properties abroad, capital gains from selling foreign investments, pensions from other countries, or income from freelance work done for clients outside Israel. Until now, you haven't even been required to report this income to Israeli authorities, though that's about to change.

There's an important deadline approaching. If you make Aliyah by December 31, 2025, you'll lock in the full benefit without any reporting requirements for the entire 10-year period. Starting January 1, 2026, new immigrants will still receive the 10-year exemption, but they'll need to report their overseas income and assets to the Israeli Tax Authority even though they won't pay taxes on them. This reporting requirement doesn't diminish the value of the exemption, but it does add a layer of administrative work that current immigrants can avoid by making Aliyah before the end of 2025.

Beyond the foreign income exemption, new immigrants also receive special tax advantages on their Israeli earnings. For 4.5 years after arrival, you'll receive extra income tax credit points that reduce the taxes you pay on Israeli income. The benefit is most generous at the start, giving you three extra credit points during your first 18 months, then two additional points for the next 12 months, and one extra point for the final 12 months. Each credit point was worth about 2,820 shekels annually in 2023, meaning this benefit alone can save thousands of shekels per year. You claim these credits by filling out form 101 for your employer, and if you enlist in the IDF or begin university studies, you can even defer the start of this benefit period until you complete your service or degree.

When the time comes to buy your first home in Israel, another substantial tax benefit awaits. Instead of paying the standard progressive purchase tax that can reach 10% on expensive properties, new immigrants pay just 0.5% on a significant portion of their first home's value. This single benefit can save 50,000 shekels or more on a property purchase. You have seven years from your Aliyah date to use this benefit, and it applies to only one property, so most people save it for when they're ready to buy rather than use it on a rental. The purchase tax reduction applies to both residential and commercial properties, giving flexibility to those planning to start businesses.

Healthcare coverage begins on day one. The National Insurance Institute provides free basic health insurance through any of Israel's health funds for your first six months. You can choose from Clalit, Maccabi, Meuhedet, or Leumit based on which one best serves your needs and location. When the free period ends after six months, your health insurance payments begin, but if you're working, they're automatically deducted from your salary as part of the national system. If you're receiving income support from the Ministry of Aliyah and Integration after your Sal Klita ends, the free health coverage extends for another six months, though you need to notify Bituach Leumi about this extension as it's not automatic.

Learning Hebrew stands as perhaps the most important step toward successful integration, and Israel makes this accessible through comprehensive Ulpan programs. These free intensive courses run for five months, meeting five days a week for five hours each day. The location you're assigned depends on your registered address, ensuring you study near your home. You have up to 18 months after making Aliyah to start your Ulpan, giving you time to settle in before committing to the intensive daily schedule. For families with young children, the challenge of attending Ulpan becomes easier with daycare subsidies available when both parents are studying Hebrew or registered as job seekers with the employment service.

Educational support extends beyond language learning. Young adults making Aliyah can receive assistance for university and college studies, with help available for bachelor's degrees up to age 27 and master's degrees up to age 30. The benefit includes reduced tuition rates at Israeli institutions and support for preparatory programs that help bridge any gaps in your academic background. For professionals with degrees from abroad, the Ministry of Aliyah and Integration helps navigate the process of credential recognition and professional licensing, ensuring your qualifications and experience are properly recognized in the Israeli job market. This assistance proves especially valuable for doctors, lawyers, engineers, and other licensed professionals who need to meet Israeli regulatory requirements.

The practical aspects of daily life receive attention through several additional benefits. Every city and town in Israel charges Arnona, a municipal property tax that applies whether you rent or own your home. New immigrants typically receive discounts of 50% to 90% on these payments, though the exact percentage varies by municipality. This discount applies during any 12-month period within your first two years, and you need to apply for it at your local municipal office rather than receiving it automatically. Similarly, you can bring household goods, appliances, and furniture from any country without paying import taxes for up to three years after Aliyah. This benefit covers up to three separate shipments, whether they arrive by sea, air, or postal service, and a customs file is automatically opened for you within three days of your arrival.

For those making Aliyah from North America, Nefesh B'Nefesh provides free one-way flights to Israel from major cities including New York, Los Angeles, Miami, Boston, and Toronto. These flights include two pieces of checked luggage at 50 pounds each, and they offer more than just free transportation. The experience of making Aliyah together with dozens or even hundreds of other new immigrants creates an immediate sense of community and shared purpose. Nefesh B'Nefesh staff are present at both departure and arrival, helping process your documents and guide you through the initial steps. The flights arrive as group experiences, with government processing for your Israeli ID card and immigration certificate happening right at the airport, streamlining what could otherwise be a bureaucratic maze.

The first days and weeks after arrival follow a clear path. After processing at the airport, you'll need to open an Israeli bank account and provide the details to the Ministry of Aliyah and Integration for your remaining Sal Klita payments. Within the first month, you should schedule an appointment at the Population and Immigration Authority to receive your biometric Israeli ID card, register your children for school with the local education department, and apply for your Arnona discount at the municipality. If you want to take advantage of the special first-year tax treatment where you're not considered an Israeli resident for tax purposes, you need to apply within 90 days of obtaining resident status.

Organizations like Nefesh B'Nefesh continue supporting new immigrants long after arrival. They organize social events, informational workshops, and seminars covering everything from employment to healthcare to education. Their post-Aliyah coordinators remain available to answer questions and help navigate challenges, and they maintain active online communities where new immigrants can connect, share advice, and support each other. For those serving in the IDF as lone soldiers or volunteering for national service, specialized programs provide housing assistance, community support, and guidance through the unique challenges these young people face. Medical professionals benefit from streamlined licensing processes through the MedEx program, which helps doctors fast-track their Israeli credentials and connect with hospitals and clinics seeking their skills.

The key to maximizing these benefits lies in understanding what's available, meeting important deadlines, and seeking professional guidance when needed. Tax planning deserves particular attention, as the interplay between Israeli benefits and obligations in your country of origin can be complex. Many new immigrants discover years later that they could have structured their finances differently to save substantial amounts, making consultation with an accountant experienced in Olim taxation a worthwhile investment. Similarly, understanding the timing and conditions of each benefit helps you plan major decisions like home purchases, career moves, and educational pursuits to align with optimal benefit windows.

These benefits reflect Israel's recognition that successful immigration requires more than idealism and determination. The transition from one country to another involves practical challenges, financial pressures, and periods of uncertainty that can overwhelm even the most committed new immigrants. By providing comprehensive support during the critical first years, Israel helps transform the daunting challenge of starting over into a manageable transition. The financial assistance covers immediate needs, the tax benefits provide long-term economic advantages, and the educational and professional support helps new immigrants build careers and contribute to Israeli society.

Making Aliyah represents one of life's most significant decisions, combining personal dreams with practical realities. The extensive benefits available to new immigrants acknowledge both dimensions, offering the support needed to turn aspiration into reality. From the moment you land at Ben Gurion Airport until well into your first decade in Israel, a structured system of assistance helps you build a new life, integrate into Israeli society, and ultimately thrive in your new home.

Information current as of October 2025. Benefits and requirements are subject to change. Always verify current details with official government sources and consult qualified professionals for personalized guidance, particularly regarding tax and financial matters.

Updated on: 02/02/2026