Complete Guide to Olim Chadashim Benefits

in Israel

Making Aliyah to Israel is a life-changing decision, and the State of Israel recognizes this by providing new immigrants (Olim Chadashim) with a comprehensive package of benefits and assistance programs. This guide details all the major benefits available to help ease your transition and integration into Israeli society.

Financial Assistance Programs

Sal Klita (Absorption Basket)

The Sal Klita is the primary financial assistance provided by the Ministry of Aliyah and Integration (Misrad Haklita). This crucial benefit helps new immigrants with initial living expenses during their first months in Israel.

How it works:

ï           You receive an initial cash payment upon arrival at Ben Gurion Airport

ï           After providing your Israeli bank details to Misrad Haklita, you'll receive the remaining payments via direct deposit

ï           Total of **six monthly installments **paid between the 1st and 15th of each month

ï           The amount varies based on age and family status

Important conditions:

ï           If you leave Israel during the first six months (for any reason), payments stop immediately

ï           Payments automatically reinstate 14 days after returning to Israel if within the first year

ï           If you return 13 months or more after Aliyah, payments are permanently discontinued

Rental Assistance (Ezrat Diyur)

The Ministry of Housing (Misrad Hashikun) provides rental subsidies to help with housing costs during your initial years in Israel.

Timing:

ï           For those who made Aliyah before March 1, 2024: Begins from the 8th month after Aliyah

ï           For those who made Aliyah on or after March 1, 2024: Begins from the 7th month after Aliyah

Duration:

ï           For those who made Aliyah before March 1, 2024: Up to five years

ï           For those who made Aliyah on or after March 1, 2024: Up to 30 months from receiving Oleh status

**Benefit amount: **The level of assistance depends on:

ï           Family status and size

ï           Where you choose to live in Israel

ï           Length of residency

**Bonus assistance: **Additional support is available for those living in:

ï           National priority areas

ï           The Negev region

ï           The Galilee region

Dmei Kiyum (Living Allowance)

If neither spouse is working after the Sal Klita payments end (after 6 months), you can apply for Dmei Kiyum through Misrad Haklita. This provides continued financial support while you establish yourself professionally.

Tax Benefits - Among the Most Valuable Benefits

10-Year Tax Exemption on Foreign Income

This is one of the most significant benefits available to Olim Chadashim, potentially saving tens or hundreds of thousands of shekels.

**What's covered: **For a full 10 years from your Aliyah date, you are exempt from Israeli tax AND reporting requirements on:

ï           Passive income (dividends, interest, rental income from properties abroad)

ï           Capital gains from foreign assets, shares, or real estate

ï           Pensions and annuities from abroad

ï           Royalties and allowances

ï           Income from freelance work for clients not located in Israel

ï           Active income earned outside Israel

**IMPORTANT UPDATE: **Make Aliyah by **December 31, 2025 **to lock in the full 10-year exemption without reporting requirements. Starting January 1, 2026, new Olim will still get the exemption but must report all overseas income and assets to the Israeli Tax Authority.

Key points:

ï           This exemption applies only to Israeli taxation - you may still need to report and pay taxes in the country where income is earned

ï           The exemption does NOT apply to income derived from Israeli sources

ï           You can request an "acclimatization year" where your first year in Israel isn't counted as resident status for tax purposes (must apply within 90 days)

Income Tax Credit Points

New immigrants receive additional tax credit points that reduce the amount of tax payable on Israeli-sourced income.

For immigrants who arrived on or after January 1, 2022:

ï           Eligible for **54 months (4.5 years) **of credit points

ï           During first 18 months: 3 extra credit points

ï           During following 12 months: 2 extra credit points

ï           During final 12 months: 1 extra credit point

For immigrants who arrived before January 1, 2022:

ï           Eligible for **42 months (3.5 years) **of credit points

ï           Same graduated structure as above

**Special provision: **If you enlist in the IDF or register for post-secondary studies, you can request to defer the start of this benefit period until completion of service or studies.

The value of one credit point in 2023 was ₪2,820 per year (₪235 per month). You claim these by filling out form 101 for your employer.

Foreign Currency Investment Exemption

New immigrants can receive a tax exemption on interest income from foreign currency investments deposited in Israeli banks, provided:

ï           The funds were owned prior to Aliyah

ï           The deposit is made with an Israeli bank

ï           Exemption lasts for 20 years (for deposits) or 10 years (for interest on pensions)

Purchase Tax Benefits (Mas Rechisha)

When buying your first residential or commercial property in Israel, Olim Chadashim receive significant purchase tax reductions.

Main benefit:

ï           Pay only **0.5% purchase tax **up to a certain threshold (instead of the standard progressive rates that can reach 10%)

ï           In some cases, full exemption on a portion of the property value

Conditions:

ï           Must be used within **7 years **of your Aliyah date, OR if you purchased property up to one year before Aliyah

ï           Can only be applied to a single property

ï           Must meet specific legal requirements

This benefit alone can save tens of thousands of shekels on a home purchase.

Healthcare Benefits

Free Health Insurance (First 6 Months)

Bituach Leumi (National Insurance Institute) provides free basic healthcare coverage through any Kupat Cholim (health fund) of your choice for the first 6 months after Aliyah.

Extended coverage:

ï           If you receive Dmei Kiyum (income support) after your Sal Klita ends, you're eligible for an additional 6 months of free coverage

ï           You must notify Bituach Leumi of this extension - it's not automatic

After the free period:

ï           If you're working, healthcare payments are automatically deducted from your salary

ï           If you're not working, you need to arrange automatic payments with Bituach Leumi You can register for your health fund at the airport upon arrival or at your local Misrad Haklita office.

Education Benefits

Ulpan (Hebrew Language Courses)

Free intensive Hebrew language instruction is one of the most essential benefits for successful integration.

What's included:

ï           Free Hebrew Ulpan course at locations throughout Israel

ï           Standard course lasts **5 months **(5 days a week, 5 hours a day)

ï           Your location determines which Ulpan you can attend (based on address on Teudat Zehut)

Timeline:

ï           Must be used within **18 months **of Aliyah

ï           Additional assistance for Hebrew language study available through Misrad Haklita

Higher Education Assistance

Substantial financial support is available for university and college studies.

Eligibility:

ï           **Bachelor's degree (BA): **Candidates up to age 27

ï           **Master's degree (MA): **Candidates up to age 30

ï           **Mechina (preparatory year): **Candidates up to age 27

Benefits include:

ï           Reduced tuition rates at Israeli universities and colleges

ï           Assistance with credential evaluation and degree recognition

ï           Support for professional licensing processes

Daycare Subsidies

For Olim with young children, daycare subsidies are available under certain conditions.

Eligibility - parents must meet ONE of the following:

1.        Both parents enrolled in Ulpan (minimum 49 hours per week)
2.        Both parents registered with Sherut Hata'asuka/Misrad Haklita as unemployed and job-seeking
3.        One parent in Ulpan, one parent registered as unemployed

**Timeline: **Available to Oleh mothers for up to 2 years under qualifying conditions.

Employment and Professional Benefits

Job Placement Services

The Ministry of Aliyah and Integration provides comprehensive employment support:

ï           Career counseling and job placement assistance

ï           Professional licensing support

ï           Registration with employment services

ï           Access to vocational training programs

ï           Professional retraining opportunities

Recognition of Foreign Degrees

Assistance with:

ï           Credential evaluation and degree recognition

ï           Professional licensing procedures

ï           Connecting with professional regulatory bodies

ï           Understanding requirements for various professions

Transportation Benefits

Driver's License Conversion

Olim from certain countries can convert their foreign driver's license to an Israeli license without taking a full driving test. The specific requirements depend on your country of origin.

Vehicle Import Tax Exemption

Olim receive a one-time exemption from customs duties and purchase tax when importing a vehicle.

Conditions:

ï           Part of the broader exemption on importing household goods

ï           Specific restrictions apply

ï           Must be coordinated with Meches (Customs Authority)

Property and Living Benefits

Arnona (Municipal Property Tax) Discount

All Israeli municipalities charge Arnona whether you rent or own property. Olim Chadashim receive substantial discounts.

Typical benefits:

ï           **50-90% discount **on Arnona payments (varies by municipality)

ï           Applies to properties up to 100 square meters

ï           Discount percentages depend on specific city or town

Timeline:

ï           Available during any **12-month period **within the first **24 months **after Aliyah

ï           You must apply for this benefit at your local municipality

Tax-Free Import of Household Goods

Olim can bring appliances and household goods from **any country **without paying import taxes.

Details:

ï           Applies to imports via sea, air, or postal packages

ï           A customs file is automatically opened within 3 days of Aliyah

ï           Available for up to **3 years **after Aliyah

ï           Maximum of **3 shipments **of imported goods

ï           Some restrictions may apply

Extensions granted for:

ï           Military service

ï           Full-time study

ï           Leaving Israel for more than 6 consecutive months

Flight Benefits

Aliyah Flight

Through Nefesh B'Nefesh and The Jewish Agency, eligible Olim receive:

ï           **Free one-way, direct Aliyah flight **from published NBN flight schedule

ï           **Two pieces of luggage **at 50 pounds each

ï           Government processing for Teudat Zehut and Teudat Oleh at the airport

ï           The experience of making Aliyah together with other Olim on group or charter flights

Departure cities include:

ï           New York (JFK, EWR)

ï           Los Angeles (LAX)

ï           Miami (MIA)

ï           Boston (BOS)

ï           Toronto (YYZ)

Important notes:

ï           Must be arranged through Nefesh B'Nefesh to utilize the benefit

ï           If you make Aliyah from within Israel, you are NOT eligible for the flight benefit

ï           Must be used on your actual Aliyah flight (cannot be used for future flights)

ï           Those who purchase their own tickets cannot receive reimbursement

First Steps Upon Arrival

At Ben Gurion Airport

1.        Go to Misrad Haklita office at the airport
2.        Receive your Teudat Zehut (ID) number

3.        Receive first Sal Klita payment
4.        Register for Kupat Cholim (health fund) - in most cases
5.        Schedule appointment for biometric Teudat Zehut

Within First Week

1.        Open an Israeli bank account
2.        Provide bank details to Misrad Haklita for direct deposits
3.        Visit local Misrad Haklita office if airport registration wasn't possible

Within First Month

1.        Schedule appointment at Misrad Hapnim (Population & Immigration Authority) for biometric Teudat Zehut
2.        Register children for school at local Agaf Hachinuch (Department of Education) or with Municipal Aliyah Coordinator
3.        Apply for Arnona discount at your municipality

Within 90 Days

1.        Apply for Israeli travel document (Teudat Ma'avar) at Misrad Hapnim
2.        If desired, submit request for "acclimatization year" tax status

Support Services Through Nefesh B'Nefesh

Beyond government benefits, Nefesh B'Nefesh provides extensive support services:

Pre-Aliyah

ï           Personal Aliyah advisors

ï           Application assistance

ï           Planning guidance

ï           Financial planning resources

Post-Aliyah

ï           Social events and activities

ï           Informational workshops and seminars

ï           Online community support (Facebook groups, email lists)

ï           Post-Aliyah coordinators for assistance with acclimation

ï           Municipal liaison support

Specialized Programs

ï           **Lone Soldiers Program: **Support for those serving in the IDF

ï           **Bnot Sherut Bodedot Program: **Support for women in National Service

ï           **NBN MedEx / IMAP: **Streamlined immigration for medical professionals

ï           **Employment assistance: **Job placement and career development

ï           Regional development initiatives

Important Reminders

**1.        Keep your Teudat Oleh (Oleh certificate) safe **- this is your proof of eligibility for all benefits

**2.        Notify authorities of address changes **- many benefits are tied to your registered address

**3.        Don't miss deadlines **- many benefits have specific time windows for eligibility

**4.        Seek professional advice **- especially for tax matters, as proper planning can maximize your benefits

**5.        Stay informed **- benefit amounts and eligibility requirements can change; always verify current information with official sources

**6.        Language matters **- learning Hebrew through Ulpan significantly improves integration and employment opportunities

**7.        Document everything **- keep copies of all paperwork related to your benefits and Aliyah process

**8.        Use available resources **- organizations like Nefesh B'Nefesh, The Jewish Agency, and municipal absorption coordinators are there to help

Key Contacts

ï           Nefesh B'Nefesh:

◦           US & Canada: 1-866-4-ALIYAH

◦           Israel: 02-659-5800

◦           Email: info@nbn.org.il

ï           Ministry of Aliyah and Integration: *3680 (from Israel)

ï           **Bituach Leumi (National Insurance): **Visit local branch or call hotline

ï           **Ministry of Housing: **Check website for local office information

Conclusion

The benefits package for Olim Chadashim is comprehensive and valuable, potentially worth hundreds of thousands of shekels over the first decade in Israel. From the immediate financial support of Sal Klita to the long-term advantages of the 10-year tax exemption, these benefits are designed to ease your transition and help you build a successful life in Israel.

The key to maximizing these benefits is:

ï           Understanding what's available

ï           Meeting eligibility requirements and deadlines

ï           Seeking professional guidance when needed

ï           Staying organized with documentation

ï           Actively engaging with support services

Making Aliyah is a significant life decision, but with proper planning and utilization of available benefits, you can successfully navigate the challenges and embrace the opportunities that await you in Israel.

Welcome home - Baruch Haba Habayita!

Note: This information is current as of October 2025. Benefits, amounts, and eligibility requirements are subject to change. Always verify current information with official government sources and consult with qualified professionals for personalized advice, especially regarding tax and financial matters.

Updated on: 02/02/2026