Financial Planning Checklist for Moving from

UK to Israel

Before You Leave the UK

Banking & Accounts

ï           [ ] Notify your UK bank of your move and provide forwarding address

ï           [ ] Set up online banking for all UK accounts

ï           [ ] Consider keeping a UK bank account open for ongoing obligations

ï           [ ] Research options for international banking (HSBC, Barclays, etc.)

ï           [ ] Understand requirements for opening an Israeli bank account

ï           [ ] Obtain certified documents if needed for Israeli banking

ï           [ ] Set up standing orders for any ongoing UK payments

Credit & Loans

ï           [ ] Check your credit score and resolve any issues

ï           [ ] Pay off or plan for existing debts (student loans, credit cards, mortgages)

ï           [ ] Understand how UK credit cards work internationally

ï           [ ] Consider keeping one UK credit card active

ï           [ ] Notify credit card companies of your move

ï           [ ] Update your address with credit reference agencies

Taxes

ï           [ ] Consult with a tax professional experienced in UK-Israel taxation

ï           [ ] Inform HMRC of your departure date and new address

ï           [ ] Understand your UK tax residency status (Statutory Residence Test)

ï           [ ] Complete a P85 form (leaving the UK)

ï           [ ] Research Israeli tax residency rules and obligations

ï           [ ] Determine split-year treatment if applicable

ï           [ ] Keep records of all financial accounts and assets

ï           [ ] Claim any UK tax refunds due

National Insurance & Pensions

ï           [ ] Check your National Insurance record and contributions

ï           [ ] Understand how leaving affects your State Pension

ï           [ ] Review workplace and private pensions

ï           [ ] Consider whether to transfer UK pensions (seek specialist advice)

ï           [ ] Research Israeli pension options (Keren Hishtalmut, Bituach Menahalim)

ï           [ ] Understand the UK-Israel Double Taxation Agreement

ï           [ ] Update beneficiaries on all pension schemes

Investments & Savings

ï           [ ] Review ISAs, stocks and shares, and other investments

ï           [ ] Understand tax implications as a non-UK resident

ï           [ ] Consider closing or transferring ISAs (they lose tax benefits)

ï           [ ] Research Israeli investment options

ï           [ ] Understand reporting requirements for both countries

ï           [ ] Consider timing of selling UK property or assets

Insurance

ï           [ ] Review and update life insurance policies

ï           [ ] Cancel or transfer car insurance

ï           [ ] Understand health coverage during transition (EHIC no longer valid post-Brexit)

ï           [ ] Research Israeli health insurance (Kupat Holim options)

ï           [ ] Consider travel insurance for transition period

ï           [ ] Review home insurance if keeping UK property

ï           [ ] Update addresses on all insurance policies

Property

ï           [ ] Decide whether to sell or rent UK property

ï           [ ] Understand UK tax on rental income as non-resident

ï           [ ] Set up property management if renting out

ï           [ ] Inform mortgage provider if applicable

ï           [ ] Update Council Tax status

First Year in Israel

Getting Established

ï           [ ] Open Israeli bank account

ï           [ ] Obtain Israeli ID number (Teudat Zehut)

ï           [ ] Register with tax authorities (Mas Hachnasa)

ï           [ ] Choose a Kupat Holim (health fund)

ï           [ ] Apply for Sal Klita (absorption basket) benefits if making Aliyah

ï           [ ] Research Oleh benefits and tax exemptions

ï           [ ] Register for National Insurance (Bituach Leumi)

Income & Employment

ï           [ ] Understand Israeli salary structure (gross vs. net)

ï           [ ] Negotiate salary considering Israeli cost of living

ï           [ ] Set up pension contributions with employer

ï           [ ] Understand Israeli employment law and benefits

ï           [ ] Register as self-employed if applicable (Osek Patur/Osek Murshe)

ï           [ ] Plan for irregular income during transition period

ï           [ ] Understand Israeli social security contributions

Currency & Transfers

ï           [ ] Set up method for transferring money between countries

ï           [ ] Research exchange rate services (Wise, CurrencyFair, OFX)

ï           [ ] Understand shekel-pound exchange rate fluctuations

ï           [ ] Plan currency strategy for large purchases

ï           [ ] Keep emergency funds in both currencies

ï           [ ] Close UK accounts you no longer need

Housing & Living Costs

ï           [ ] Budget for Israeli cost of living (generally higher than UK)

ï           [ ] Understand rental market (Arnona, Vaad Bayit fees)

ï           [ ] Factor in utility costs (electricity is expensive)

ï           [ ] Budget for furniture and household setup

ï           [ ] Research transportation costs (car vs. public transit)

ï           [ ] Plan for higher food and consumer goods costs

Ongoing Considerations

Annual Requirements

ï           [ ] File UK tax return if still required (self-assessment deadline: Jan 31)

ï           [ ] File Israeli taxes (usually due April 30)

ï           [ ] Report foreign income to both countries as required

ï           [ ] Keep records of UK source income

ï           [ ] Claim relief under UK-Israel tax treaty if applicable

ï           [ ] Update National Insurance voluntary contributions if maintaining UK record

Long-term Planning

ï           [ ] Build emergency fund in shekels (3-6 months expenses)

ï           [ ] Contribute to Israeli pension/retirement savings

ï           [ ] Review UK State Pension forecast annually

ï           [ ] Consider voluntary NI contributions to protect UK pension

ï           [ ] Review insurance needs as circumstances change

ï           [ ] Plan for children's education costs

ï           [ ] Consider purchasing property in Israel

ï           [ ] Update will and estate planning for both countries

ï           [ ] Review investment strategy for dual residency

Professional Help

ï           [ ] Find English-speaking accountant in Israel

ï           [ ] Maintain relationship with UK accountant if needed

ï           [ ] Consider financial adviser familiar with UK-Israel issues

ï           [ ] Consult pension transfer specialist before moving UK pensions

ï           [ ] Join UK expat groups in Israel for advice

Key Differences: UK vs Israel

Financial System

ï           Israel uses the shekel (₪/ILS) as currency

ï           Most employers pay monthly, not monthly via PAYE

ï           Israeli tax year runs January-December (not April-April)

ï           No equivalent to UK ISAs in Israel

ï           Banking fees are generally higher in Israel

ï           Credit card culture is different (debit cards less common)

Taxation

ï           Israeli income tax rates are similar to UK

ï           VAT in Israel is 17% (lower than UK's 20%)

ï           No Council Tax equivalent (Arnona is property-based)

ï           Capital gains tax applies differently

ï           New immigrants may get 10-year tax exemption on foreign income

ï           UK-Israel tax treaty prevents double taxation

Social Security

ï           Bituach Leumi (Israeli National Insurance) is mandatory

ï           Contributions are percentage-based, similar to UK NI

ï           Israeli State Pension age is lower than UK (67 for men, 62-65 for women)

ï           Workplace pensions are mandatory in Israel

ï           No equivalent to UK benefits system initially (until residency established)

Cost of Living Considerations

ï           Generally higher than most UK cities (similar to London)

ï           Cars and electronics more expensive

ï           Public transport less extensive than UK

ï           Healthcare technically free but supplemental insurance recommended

ï           Food costs vary (fresh produce cheaper, imports expensive)

Important Documents to Bring

ï           [ ] Birth certificates (original and apostilled)

ï           [ ] Marriage certificate if applicable (original and apostilled)

ï           [ ] Proof of UK address (utility bills, council tax)

ï           [ ] Bank statements (last 6 months)

ï           [ ] P45 or P60 tax documents

ï           [ ] Pension statements

ï           [ ] Educational certificates and diplomas

ï           [ ] Employment references

ï           [ ] Driving licence (exchange within one year)

ï           [ ] Medical records

ï           [ ] Proof of Jewish heritage (if making Aliyah)

Critical Timeline Actions

3 Months Before

ï           Inform HMRC of departure

ï           Begin closing unnecessary accounts

ï           Research Israeli banks and requirements

ï           Consult with tax advisers in both countries

1 Month Before

ï           Submit P85 form to HMRC

ï           Set up mail forwarding

ï           Transfer emergency funds to accessible account

ï           Finalize UK property arrangements

Upon Arrival

ï           Register address in Israel within 30 days

ï           Open bank account immediately

ï           Register for health insurance

ï           Begin tax registration process

First 3 Months

ï           Complete all registration requirements

ï           Set up utility payments

ï           Establish financial routines

ï           Build local credit history

Additional Resources

UK Government:

ï           HMRC International: For tax obligations

ï           DWP International Pension Centre: For State Pension queries

ï           Gov.uk's "Living abroad" section

Israel:

ï           Nefesh B'Nefesh: Comprehensive Aliyah guidance

ï           Ministry of Aliyah and Integration: Official benefits and support

ï           Israel Tax Authority (Mas Hachnasa): Tax information

**Recommendation: **Consult with professionals who specialize in UK-Israel financial planning, particularly regarding pension transfers and the double taxation treaty.

Updated on: 01/02/2026