Financial Planning Checklist for Moving to

Israel

Before You Leave

Banking & Accounts

ï           [ ] Notify your US bank of your move and international address

ï           [ ] Set up online banking for all US accounts

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

ï           [ ] Research Israeli banks (Bank Leumi, Bank Hapoalim, Discount Bank, etc.)

ï           [ ] Understand requirements for opening an Israeli bank account

ï           [ ] Obtain apostilled documents if needed for banking

Credit & Loans

ï           [ ] Check your credit score and resolve any issues

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

ï           [ ] Understand how US credit cards work internationally

ï           [ ] Consider keeping one US credit card active

ï           [ ] Notify credit card companies of your move

Taxes

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

ï           [ ] Understand your US tax obligations as an expat (FBAR, FATCA)

ï           [ ] Research Israeli tax residency rules and obligations

ï           [ ] Determine your tax status for the year of Aliyah

ï           [ ] Keep records of all financial accounts and assets

ï           [ ] Set up system for filing both US and Israeli taxes

Retirement & Investments

ï           [ ] Review 401(k), IRA, and other retirement accounts

ï           [ ] Understand tax implications of maintaining US retirement accounts

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

ï           [ ] Consult about PFIC (Passive Foreign Investment Company) rules

ï           [ ] Consider whether to keep or liquidate US investments

ï           [ ] Update beneficiaries on all accounts

Insurance

ï           [ ] Review and update life insurance policies

ï           [ ] Understand health insurance coverage during transition

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

ï           [ ] Consider supplemental health insurance in Israel

ï           [ ] Review homeowners/renters insurance if keeping US property

ï           [ ] Update addresses on all insurance policies

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

Income & Employment

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

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

ï           [ ] Plan for irregular income during transition period

Currency & Transfers

ï           [ ] Set up method for transferring money between countries

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

ï           [ ] Understand shekel-dollar exchange rate fluctuations

ï           [ ] Plan currency strategy for large purchases

ï           [ ] Keep emergency funds in both currencies

Housing & Living Costs

ï           [ ] Budget for higher cost of living in Israel

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)

Ongoing Considerations

Annual Requirements

ï           [ ] File US taxes annually (usually due June 15 for expats)

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

ï           [ ] File FBAR if foreign accounts exceed $10,000

ï           [ ] Update records of foreign bank accounts

ï           [ ] Review and rebalance investments

Long-term Planning

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

ï           [ ] Contribute to Israeli pension/retirement savings

ï           [ ] Review insurance needs as family situation changes

ï           [ ] Plan for children's education costs

ï           [ ] Consider purchasing property in Israel

ï           [ ] Update estate planning documents for both countries

Professional Help

ï           [ ] Find English-speaking accountant in Israel

ï           [ ] Maintain relationship with US tax professional

ï           [ ] Consider financial planner familiar with US-Israel issues

ï           [ ] Join expat groups for financial advice and tips

Important Notes

ï           Israeli financial year runs January-December

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

ï           Many Israeli employers pay monthly, not bi-weekly

ï           Social security (Bituach Leumi) is mandatory

ï           New immigrants may qualify for significant tax benefits for first 10 years **Recommendation: **Consult with professionals who specialize in US-Israel financial planning, as the dual tax system can be complex.

Updated on: 01/02/2026