Importing a Vehicle to Israel as an Oleh
Importing a Vehicle to Israel as an Oleh -
Complete Guide
Important Reality Check: Is Importing Worth It?
The Bottom Line First
**Most Olim should NOT import a vehicle. **Here's why:
Even with the Oleh tax benefit, you'll still pay:
ï Customs duties: ~78-83% of vehicle value + shipping costs
ï Shipping costs: $2,000-5,000+
ï Modification costs: $2,000-5,000 (safety/compliance)
ï Agent fees: $1,000-2,000
ï Time: 2-6 months
ï Hassle: Significant bureaucracy
Example:
ï $25,000 car in US
ï Shipping: $3,000
ï Total value: $28,000
ï Customs tax (78%): ~$21,800
ï Modifications: $3,000
ï Agent fees: $1,500
ï Total cost: ~$49,300 (₪185,000) VS. buying in Israel with Oleh benefit:
ï Similar car in Israel: ₪230,000 without benefit
ï With Oleh benefit: ₪150,000-170,000
ï You save ₪60,000-80,000 on purchase tax
ï Result: Similar total cost, but buying locally is MUCH easier
When Importing MIGHT Make Sense
Consider importing only if:
ï You own a classic/collector car (sentimental value)
ï Very rare vehicle unavailable in Israel
ï Ultra-luxury vehicle where import still saves money
ï You're willing to deal with months of bureaucracy
ï You understand all costs and risks
ï You've done detailed cost comparison
For 95% of Olim: Buy in Israel with the tax benefit instead.
Understanding the Oleh Vehicle Import Benefit
What Is the Benefit?
Tax exemption on imported vehicle:
ï Exemption from purchase tax (normally 30-83%)
ï Part of your new immigrant customs benefits
ï One vehicle per Oleh household
ï Separate from the purchase benefit (you can use both)
Important distinction:
ï **Importing benefit: **Reduce tax on vehicle you bring from abroad
ï **Purchase benefit (Tofes 5): **Full exemption on NEW car bought in Israel
ï You can theoretically use BOTH (import one vehicle, buy one in Israel)
ï BUT most people use Tofes 5 only (buying in Israel is easier and often cheaper)
Eligibility Requirements
You qualify if:
ï New immigrant (Oleh Chadash)
ï Returning Israeli (Ezrach Oleh)
ï Returning resident (Toshav Chozer) after 2+ years abroad
ï Former A-1 visa holders eligible for customs benefits
Timeline:
ï Must import within **3 years **of Aliyah date
ï Vehicle must arrive AND clear customs within this window
ï Extensions possible for: IDF service, university study, or 6+ months abroad
License requirement:
ï Must have valid foreign driver's license (held for 3+ years)
ï Must convert to Israeli license within first year
ï During first year: Can import without Israeli license if you commit to getting one
What Vehicles Can Be Imported?
Eligible vehicles:
ï Motorcycles (must be under 24 months old)
ï Passenger cars (M1 or M2 class)
ï Must weigh under 3,500 kg
ï Any age (unlike returning residents limited to 4 years)
Vehicle requirements:
ï **Clear title **- No liens, leases, or financial claims
ï **Clean history **- No major accidents
ï **Electronic Stability Protection (ESP/ESC) **- Mandatory safety feature
ï **Registered in your name **- Title must match Oleh
ï **Meets Israeli standards **- European or US/Canadian safety standards
Electric vehicles:
ï NOT eligible for Oleh import benefit
ï Already have their own 45% tax reduction (everyone gets this)
ï Better to buy locally
Vehicle Standards & Requirements
European Standards (Easiest)
If your car was manufactured for European market:
ï Must provide Certificate of Conformity (COC)
ï Proves vehicle meets EU standards
ï Israeli standards based on European Commonwealth
ï Simplest import process
Where to get COC:
ï Contact vehicle manufacturer
ï Request for specific VIN number
ï May take several weeks
ï Essential document
US/Canadian Standards
Vehicles meeting FMVSS or CMVSS:
ï Federal Motor Vehicle Safety Standards (US)
ï Canada Motor Vehicle Safety Standards (Canada)
ï Acceptable for import regardless of manufacture country
Required documents:
ï **Certificate of Title **(original)
ï **CARFAX report **(original, full vehicle history)
ï Clean history essential
ï Must show no major accidents
What CANNOT Be Imported
Prohibited:
ï Right-hand drive vehicles (UK, Australia, Japan, etc.)
ï Vehicles without ESP/ESC (electronic stability control)
ï Vehicles with salvage titles
ï Vehicles with liens or unclear ownership
ï Vehicles not meeting safety standards
ï Hybrid vehicles (no special reduction, everyone pays 45%)
Required Modifications
Most imported vehicles need:
ï **Metric speedometer **- Must display km/h
ï **Headlights adjustment **- Israeli standard T0211001
ï **Seatbelt compliance **- Israeli standards
ï **Emissions system check **- Must meet Israeli limits
ï **Identification stickers **- Israeli requirement
**Cost: **$2,000-5,000 typically
Who does modifications:
ï Licensed Israeli garages
ï Before vehicle can be registered
ï Must have garage letter stating they can service vehicle
The Import Process: Step-by-Step
Phase 1: Before Shipping (In Your Home Country)
Step 1: Verify your vehicle is eligible
ï Check manufacture standards (EU or US/Canadian)
ï Confirm left-hand drive
ï Verify ESP/ESC equipped
ï Check for clean title
ï Run CARFAX or equivalent
Step 2: Consult with import agent
ï Email: [email protected] (Nefesh B'Nefesh) for guidance
ï Or contact professional Israeli import companies
ï Get cost estimate (shipping + taxes + modifications)
ï Compare to buying in Israel with Oleh benefit
Step 3: Gather required documents Vehicle documents:
ï Original title/certificate of ownership
ï Registration papers
ï Original purchase invoice (if recent)
ï CARFAX report (North America) OR Certificate of Conformity (Europe)
ï Service/maintenance records
ï Proof of ESP/ESC
Personal documents:
ï Teudat Oleh (immigrant certificate)
ï Teudat Zehut (Israeli ID)
ï Foreign passport with Aliyah visa
ï Israeli passport (if you have one)
ï Valid foreign driver's license (3+ years)
ï Israeli driver's license (or commitment to get one within year 1)
Step 4: Arrange garage letter
ï Contact authorized Israeli garages for your vehicle make
ï Request letter stating they can provide service and parts
ï Not required to actually use this garage later
ï May need to pay small fee for letter
ï Essential document for import approval
Step 5: Apply for import license
ï Apply online through Ministry of Transportation
ï Website: www.gov.il/transport
ï Must use Internet Explorer for form
ï Need specific vehicle details (VIN, make, model, engine capacity)
ï **CRITICAL: **Details must be EXACT or license invalid
ï Processing time: ~21 working days
ï Must be approved BEFORE vehicle ships
**Important: **If vehicle arrives before license issued, automatic 5% fine on vehicle value!
Step 6: Arrange shipping
ï Professional auto shipping companies
ï Container shipping (can share with household goods)
ï Or Roll-on/Roll-off (RoRo) service
ï Cost: $2,000-5,000 depending on origin
ï Time: 2-8 weeks in transit
ï **Do NOT load household goods inside the car **- complicates customs
Phase 2: During Transit
Step 7: Arrange customs clearance agent
ï Required in Israel
ï Handles customs paperwork
ï Fee: $1,000-2,000
ï Coordinate before vehicle arrives
Step 8: Arrange insurance
ï Need Bituach Chova (mandatory third-party) minimum
ï Before vehicle can leave port
ï Can arrange in advance
Step 9: Monitor shipment
ï Track shipping progress
ï Notify agent of arrival date
ï Prepare final documents
ï Ready for customs clearance
Phase 3: Arrival in Israel Step 10: Customs clearance What happens:
ï Vehicle arrives at Haifa or Ashdod port
ï Customs inspection
ï Valuation by Meches (tax authority appraiser)
ï If appraiser disputes declared value, can appeal in writing
ï Process can take several weeks
ï May not have access to vehicle during review
Documents needed at customs:
ï All original vehicle documents
ï All personal Oleh documents
ï Import license from Ministry of Transportation
ï Proof of insurance
ï Power of Attorney (for customs agent)
ï Certificate proving roadworthy/safety inspection
Taxes calculated:
ï Based on vehicle's global market value
ï Age-based depreciation applied:
◦ Year 1: 20% depreciation
◦ Years 2-10: 10% per year
◦ Maximum 80% depreciation after 10 years
ï Oleh benefit reduces purchase tax portion
ï Still pay: VAT (18%), other duties
ï Total typically: 78-83% of (vehicle value + shipping)
Step 11: Pay taxes and fees
ï Customs duties and taxes
ï Port fees
ï Agent fees
ï Modification costs (if not yet done)
Step 12: Vehicle released from port
ï Usually 1-3 weeks after arrival
ï Depends on customs process
ï Any issues with documents can cause delays
Phase 4: Registration & Modifications
Step 13: Vehicle modifications
ï Take to licensed garage
ï Install metric speedometer
ï Adjust headlights
ï Any other required modifications
ï Get certification
ï Cost: $2,000-5,000
Step 14: Safety inspection
ï Israeli roadworthy test (similar to טסט)
ï Before first registration
ï Must pass all safety standards
ï Includes emissions test
Step 15: Register vehicle
ï Visit Misrad Harishui (Licensing Bureau)
ï Present all documents:
◦ Customs clearance papers
◦ Modification certificates
◦ Safety inspection pass
◦ Insurance
◦ Personal documents
◦ Israeli driver's license
ï Pay registration fee
ï Receive Israeli license plates
ï Receive registration certificate (Rishuon Rechev)
Step 16: You can finally drive!
ï Process complete: 2-6 months total from shipping
Post-Import Restrictions
4-Year Ownership Requirement
Critical restriction:
ï Must keep vehicle registered in YOUR name for **4 years **from customs clearance date
ï Cannot sell, transfer ownership, or gift
ï Cannot allow others to drive (without specific permission)
If you sell before 4 years:
ï Must repay the full tax reduction you received
ï Negates entire benefit
ï Very expensive mistake
Exceptions:
ï Total loss (vehicle destroyed)
ï Theft (unrecovered)
ï Permanent departure from Israel
ï Death
Driving Permissions
**Only you can drive **(as the importing Oleh) unless:
ï You get written permission from Customs Authority
ï Each additional driver needs approval
ï Submit: Driver's license copy, car license, Teudat Zehut
ï Contact: [email protected]
ï Or visit Customs office
Even family members need permission:
ï Spouse
ï Children
ï Anyone else
ï Get permission before letting them drive
Costs Breakdown: Real Examples (CORRECTED WITH 18% VAT)
Example 1: Mid-Size Sedan from USA Vehicle: **2020 Honda Accord **Value in US: **$22,000 **Costs:
ï Shipping (LA to Haifa): $3,500
ï Total value: $25,500
ï Customs tax (78%): $19,890
ï VAT (18%): $4,590
ï Modifications (speedometer, headlights): $2,500
ï Agent fees: $1,500
ï Registration: $500
ï TOTAL: $39,980 (₪150,000)
Alternative - Buy in Israel:
ï 2020 Accord in Israel: ₪200,000 without benefit
ï With Oleh benefit (Tofes 5): ₪135,000-145,000
ï RESULT: Buying in Israel is cheaper AND easier
Example 2: Luxury SUV from Europe
**Vehicle: **2019 BMW X5 **Value in Europe: **€50,000 ($53,000)
Costs:
ï Shipping (Germany to Haifa): $4,000
ï Total value: $57,000
ï Customs tax (83%): $47,310
ï VAT (18%): $10,260
ï Modifications: $3,500
ï Agent fees: $2,000
ï Registration: $700
ï TOTAL: $120,770 (₪455,000)
Alternative - Buy in Israel:
ï 2019 X5 in Israel: ₪600,000 without benefit
ï With Oleh benefit: ₪360,000-380,000
ï RESULT: Importing saves ~₪75,000-100,000, might be worth hassle for luxury vehicle
Example 3: Classic Car
**Vehicle: **1965 Ford Mustang **Value: **$30,000
Costs:
ï Shipping: $5,000 (special handling)
ï Total value: $35,000
ï Customs tax (80% depreciated): $27,300
ï VAT (18%): $6,300
ï Modifications: $5,000 (extensive)
ï Agent fees: $2,000
ï Registration: $800
ï TOTAL: $76,400 (₪288,000)
Alternative - Buy in Israel:
ï Similar classic car: Rare/unavailable or ₪400,000+
ï RESULT: If car has sentimental value or very rare, might justify import
Example 4: Small Economy Car
**Vehicle: **2021 Toyota Corolla **Value in US: **$18,000
Costs:
ï Shipping: $3,000
ï Total value: $21,000
ï Customs tax (78%): $16,380
ï VAT (18%): $3,780
ï Modifications: $2,000
ï Agent fees: $1,500
ï Registration: $400
ï TOTAL: $44,060 (₪166,000)
Alternative - Buy in Israel:
ï 2021 Corolla in Israel: ₪180,000 without benefit
ï With Oleh benefit: ₪115,000-125,000
ï RESULT: Buying in Israel is MUCH cheaper
Two Import Options
Option A: Use Professional Import Company
What they do:
ï Handle all paperwork
ï Coordinate shipping
ï Customs clearance
ï Modifications
ï Registration
ï End-to-end service
Advantages:
ï Expertise and experience
ï Handles complex bureaucracy
ï Saves time and stress
ï One point of contact
ï Higher success rate
Disadvantages:
ï Higher fees ($2,000-5,000 for services)
ï Less control over process
ï Rely on their timeline
Recommended companies:
ï Kef International
ï Sonigo International
ï Orbit Moving
ï Ask Nefesh B'Nefesh for recommendations
Option B: DIY Import
What you do:
ï Handle paperwork yourself
ï Hire shipping company only
ï Clear customs yourself (or hire agent just for that)
ï Arrange modifications yourself
ï Register yourself
Advantages:
ï Lower cost (save agent fees)
ï Direct control
ï Understand entire process
Disadvantages:
ï Very time-consuming
ï Complex bureaucracy
ï Easy to make costly mistakes
ï Language barrier (Hebrew)
ï Stressful
Recommended for:
ï Hebrew speakers
ï Those with time
ï Cost-conscious
ï Organized/patient people
Not recommended for:
ï First-year Olim (too much else going on)
ï Those without fluent Hebrew
ï Time-poor people
ï Risk-averse
Common Issues & How to Avoid Them
Issue 1: Import License Delays
Problem:
ï Vehicle arrives before import license issued
ï Automatic 5% fine
Prevention:
ï Apply for license EARLY (before shipping)
ï Don't ship until license approved
ï Double-check all details on application
ï Allow 3-4 weeks processing
Issue 2: Valuation Disputes
Problem:
ï Customs appraiser values vehicle higher than you declared
ï Must pay more tax or appeal
Prevention:
ï Declare realistic market value
ï Provide comparable sales data
ï Professional appraisal before shipping
ï Be prepared to appeal if needed
If it happens:
ï Appeal in writing
ï Provide evidence of value
ï Be patient (weeks to resolve)
ï May need lawyer
Issue 3: Missing Documents
Problem:
ï Vehicle held at port due to incomplete paperwork
ï Storage fees accumulating
Prevention:
ï Complete document checklist before shipping
ï Multiple copies of everything
ï Verify requirements with agent
ï Have documents ready before arrival
Issue 4: Modification Costs Higher Than Expected
Problem:
ï Modifications cost $5,000+ instead of $2,000
Prevention:
ï Get quotes from multiple garages beforehand
ï Ask about specific model
ï Budget high
ï Some vehicles more expensive to modify
Issue 5: Vehicle Fails Safety Inspection
Problem:
ï Can't register until issues resolved
ï Additional repairs needed
Prevention:
ï Pre-shipping inspection in home country
ï Address any known issues before shipping
ï Choose vehicle in good condition
ï Budget for unexpected repairs
Issue 6: Garage Won't Service Vehicle
Problem:
ï Can't find garage to provide required letter
ï Rare models may have no Israeli support
Prevention:
ï Research before buying/shipping
ï Contact Israeli garages for your make/model
ï If no support available, don't import
ï Common brands (Toyota, Honda, Ford, BMW, etc.) no problem
Special Situations
Motorcycles
Additional requirements:
ï Must be under 24 months old (new)
ï Older motorcycles cannot be imported as Oleh
ï Same process otherwise
ï Same 4-year restriction
Returning Residents (Toshav Chozer)
Different rules:
ï Can only import vehicles up to 4 years old
ï Must import within 3 months of return
ï Must have been abroad 6+ consecutive months
ï Similar tax benefit
Multiple Vehicles
Can you import more than one?
ï Oleh benefit applies to ONE vehicle only
ï Could import additional vehicles but full tax
ï Not cost-effective
ï Better to buy second car in Israel later
Selling Before 4 Years
Emergency situations:
ï Must repay tax reduction
ï Calculated based on vehicle age and value
ï Contact Customs Authority
ï Explain circumstances (no guarantee of leniency)
ï Very expensive
Alternatives to Importing
Alternative 1: Buy Used in Israel (First)
Strategy:
ï Buy affordable used car first year (₪30,000-50,000)
ï No Oleh benefit used
ï Learn Israeli roads and driving culture
ï Within 3 years: Use Oleh benefit (Tofes 5) to buy new car
ï Sell used car
Advantages:
ï Immediate mobility
ï Save Oleh benefit for when you know what you want
ï Learn market
ï Less pressure
Alternative 2: Lease Temporarily
Strategy:
ï Lease car first 1-2 years
ï Research what you really need
ï Then use Oleh benefit to purchase
Advantages:
ï Flexibility
ï Try different vehicles
ï No long-term commitment
ï Save benefit for later
Alternative 3: Don't Own Car Initially
Strategy:
ï Use public transport first year
ï Occasional rentals as needed
ï Buy with Oleh benefit when ready
Advantages:
ï Save money
ï Learn transportation system
ï Make informed decision
ï No rush
Decision Framework: Import or Buy Locally?
Import Makes Sense If:
Classic/collector car (sentimental value, rare) Very high-value vehicle (luxury where import still saves significantly after all costs) You own vehicle outright (no need to buy first) Calculated total cost is genuinely lower than buying in Israel You're willing to wait 2-6 months You can handle bureaucracy or pay for professional help Vehicle meets all Israeli requirements You've done thorough cost comparison with 18% VAT
Buy in Israel Makes More Sense If:
Standard vehicle (Honda, Toyota, Mazda, etc.) Need car quickly Want hassle-free process Limited time/energy (settling in already stressful) Not fluent in Hebrew Cost
comparison shows similar or better to buy locally Want newer vehicle with Israeli warranty Want to avoid import risks
Recommendations by Situation
Just Made Aliyah (Month 1-6)
**Recommendation: **Don't import yet
ï Focus on settling in
ï Get driver's license converted
ï Learn what you need
ï Research costs
ï If urgent need: Buy used car (save Oleh benefit)
Settled, Ready for Car (Month 6-18)
**Recommendation: **Use Tofes 5 to buy in Israel
ï Easier process
ï Usually similar or better cost
ï Immediate delivery (6-12 months but straightforward)
ï Israeli warranty
ï Save import hassle
Import only if:
ï Specific vehicle from abroad significantly cheaper (after ALL costs including 18% VAT)
ï Classic/special car
ï Did thorough cost analysis
Have Special Vehicle Abroad
**Recommendation: **Get professional import quote
ï Contact import companies
ï Get detailed cost breakdown (with 18% VAT)
ï Compare to buying similar in Israel
ï Factor in your time/stress
ï Decide based on numbers + emotional value
Later in 3-Year Window (Month 24+)
**Recommendation: **Buy in Israel with Tofes 5
ï Import takes 2-6 months
ï Risk missing 3-year deadline
ï Buying in Israel faster and safer
ï Don't risk losing benefit entirely
Contact Information & Resources
Professional Import Companies
Kef International:
ï Israel: +972-2-673-5043
ï North America: 1-866-425-5224
ï Website: www.kefintl.com
ï Email: info@kefintl.com
Sonigo International:
ï Website: www.sonigo.com
ï Specializes in Aliyah moves and vehicle imports
Orbit Moving:
ï Website: www.orbitmoving.com
ï Full-service international moving including vehicles
Government Resources
Ministry of Transportation:
ï Website: www.gov.il/transport
ï Import license application online
ï Hotline: *4515
Customs Authority (Meches):
ï Email: [email protected]
ï Customs questions and permissions
Nefesh B'Nefesh:
ï Email: [email protected]
ï General guidance on import process
ï Helpline: *3680 (from Israel)
Useful Documents & Forms
Import license application: www.gov.il/transport (online form) **Vehicle standards: **Israeli Ministry of Transportation website **Customs regulations: www.gov.il/customs
Tax & Cost Summary
Current Rates (Corrected)
**VAT: **18% (applies to all vehicle transactions) **Purchase Tax: **30-83% depending on vehicle value (Oleh benefit exempts this) **Import Duties: **Variable based on vehicle type and origin **Total Import Cost: **Typically 78-83% of (vehicle value + shipping) even with Oleh benefit
What the Oleh Benefit Covers
Exempted:
ï Purchase tax (30-83% normally)
Still Must Pay:
ï VAT (18%)
ï Import duties
ï Shipping costs
ï Modification costs
ï Agent fees
ï Registration fees
Quick Cost Estimator
To estimate total import cost:
**1. **Vehicle current market value: $
**2. **Add shipping cost: $
**3. **Total CIF value: $
**4. **Multiply by 0.78-0.83: $__ __(this is your tax/duty)
**5. **Add modifications: $2,000-5,000
**6. **Add agent fees: $1,000-2,000
**7. **Add registration: $500-1,000
8. TOTAL COST = Steps 1-7 combined Compare this to:
ï Similar vehicle in Israel without benefit: ₪
ï Minus Oleh tax exemption savings: ₪60,000-200,000
ï Total with Tofes 5: ₪
**Decision: **Which is lower cost? Which is less hassle?
Final Thoughts
The Reality Check
Importing a vehicle to Israel sounds appealing but is:
ï More expensive than most people expect (especially with 18% VAT)
ï More complicated than buying locally
ï Time-consuming (2-6 months)
ï Risky (delays, disputes, modifications)
ï Often NOT cheaper than buying in Israel with Tofes 5
For most Olim:
ï The Tofes 5 benefit (buying new in Israel) is better
ï Saves ₪50,000-200,000 on purchase tax
ï Much simpler process
ï Faster (6-12 months but predictable)
ï Israeli warranty and support
ï VAT (18%) still applies but on lower base price
Import makes sense for:
ï Classic/collector cars
ï Very rare vehicles
ï Some ultra-luxury vehicles (after careful analysis with correct VAT)
ï Strong sentimental attachment
**Bottom line: **Do the math carefully with 18% VAT. In most cases, you'll save more money, time, and stress by buying in Israel with your Oleh benefit rather than importing.
The Math Truth
Why buying in Israel usually wins: Importing a $25,000 car:
ï $25,000 + $3,000 shipping = $28,000
ï Add 78% tax = $21,840
ï Add 18% VAT = $5,040
ï Add mods/fees = $5,000
ï Total: ~$60,000 (₪226,000) Buying equivalent in Israel:
ï Market price: ₪250,000
ï Minus Oleh benefit: -₪75,000
ï Total: ₪175,000
Savings buying in Israel: ₪51,000 + much less hassle
Still Considering Import?
Do this exercise:
- Get professional import quote (full costs with 18% VAT)
- Compare to buying similar car in Israel with Tofes 5
- Factor in your time/stress value (worth ₪10,000-30,000)
- Make informed decision
- If importing: Use professional import company
- If buying: Research best use of Tofes 5 benefit
Most Important Takeaways
**1. VAT is 18% **- not 17%, affects all calculations
**2. Import rarely saves money **for standard vehicles
**3. Tofes 5 benefit is usually better **- simpler and often cheaper
**4. Professional help is essential **if importing
**5. Do the full math **before deciding
**6. 4-year ownership restriction **applies to imports
**7. Factor in hassle cost **- your time and stress have value
Updated on: 02/02/2026
Thank you!