Benefits For New Olim
Benefits for New Olim: Your First Decade of Support
Israel has built an extensive support system for olim — financial help, tax advantages, and practical assistance worth hundreds of thousands of shekels over your first decade. Knowing what exists, and timing it well, is the difference between a hard transition and a strong start.
Making aliyah is daunting, but you don't arrive empty-handed. Israel offers olim one of the most generous absorption packages in the world — cash from day one, a decade of tax advantages, free Hebrew study, healthcare, housing help and more. The catch is that almost none of it is automatic, and the biggest savings depend on timing major decisions to fall inside the right windows. Here's the full picture.
Money on day one: Sal Klita, the absorption basket
Support begins at the airport. At the Ministry of Aliyah & Integration desk you receive your first Sal Klita payment — the absorption basket that carries you through the early months. It isn't a one-off: deposits land in your Israeli bank account monthly for the first six months, with the total set by your age and family status.
It's meant for rent, food and basic costs while you settle, learn the language, and begin the search for work. The one practical thing you must do: open and activate your bank account quickly — the Ministry can't pay into an inactive account.
A roof over you: housing assistance
When the Sal Klita ends, housing help takes over. The Ministry of Housing provides a rental subsidy from around your seventh or eighth month, and it can run for up to 30 months, bridging the gap to full independence. The amount depends on family size, where you live, and how long you've been in Israel.
You can stretch it further by settling in a national-priority area — the Negev or the Galilee — where you receive additional support. And if neither spouse has found work once the basket ends, the Dmei Kiyum living allowance can continue the support.
The headline benefit: the 10-year foreign-income exemption
Israel's signature tax benefit sets it apart: a full ten-year exemption on foreign income. For a decade after you become resident, you pay no Israeli tax on foreign dividends or interest, rental income from property abroad, capital gains on overseas investments, foreign pensions, or freelance income from clients outside Israel.
What changed in 2026: the exemption itself is fully intact — but the long-standing reporting exemption ended for olim who became Israeli residents from 1 January 2026. You still pay no tax on foreign income, but you must now report your worldwide income and foreign assets to the Israel Tax Authority. That's extra administration, not extra tax — and a cross-border accountant is well worth it, especially for US citizens.
On Israeli earnings: income tax credit points
New immigrants also get extra income-tax credit points that cut the tax on Israeli earnings — most generous at the start, then tapering over 4.5 years.
Period after arrivalExtra credit pointsFirst 18 months3 pointsNext 12 months2 pointsFinal 12 months1 point
Each point was worth about ₪2,820 a year (2023, indexed since), so this saves thousands annually. Claim it via form 101 with your employer — and if you enlist in the IDF or start university, you can defer the benefit period until you finish.
Buying a home: the first-home purchase tax break
When you buy your first home, the purchase-tax saving is substantial. Instead of the standard progressive tax — which can reach 10% on costly properties — new immigrants pay just 0.5% on a significant slice of the value. That alone can save ₪50,000 or more.
Use it wisely: you have seven years from your aliyah date, and it applies to one property — so most people save it for a purchase rather than spend it on a rental. It covers residential and commercial property alike, useful if you plan to start a business.
From day one: healthcare coverage
Health cover starts immediately. The National Insurance Institute provides free basic insurance through a health fund for your first six months — choose Clalit, Maccabi, Meuhedet or Leumit based on what suits you and your area. After that, if you're working, contributions are simply deducted from your salary.
There's an extension worth knowing about: if you're receiving income support from the Ministry once your Sal Klita ends, free cover can extend another six months — but it isn't automatic, so notify Bituach Leumi.
The language: free ulpan
Israel makes Hebrew accessible through free, intensive ulpan — five months, five days a week, five hours a day. Your placement is based on your registered address, so you study near home, and you have up to 18 months after aliyah to start, leaving room to settle in first.
For parents: daycare subsidies are available when both parents are studying Hebrew or registered as job seekers with the employment service — so young children needn't stand in the way of the classroom.
Study and profession: education and credentials
Support reaches past the language. Young olim can get help with higher studies — bachelor's degrees up to age 27, master's up to 30 — including reduced tuition at Israeli institutions and preparatory programmes that bridge any gaps.
For qualified professionals, the Ministry helps navigate credential recognition and professional licensing, so foreign qualifications are properly recognised — especially valuable for doctors, lawyers and engineers who must meet Israeli regulatory requirements.
Municipal tax: the Arnona discount
Every town charges Arnona, a municipal property tax owed whether you rent or own. New immigrants typically receive a discount of 50–90%, though the exact figure varies by municipality.
You must apply — it isn't automatic. The discount covers any 12-month period within your first two years, so apply at your local municipal office and choose your 12 months to fall when you most need them.
Bringing it over: duty-free imports
You can bring household goods, appliances and furniture from any country without import tax for up to three years after aliyah. The benefit covers up to three separate shipments — by sea, air or post — and a customs file is opened for you automatically within three days of arrival.
Plan the three: because you get three shipments across three years, you can bring essentials first and follow with the rest as your home takes shape — no need to land everything at once.
Getting there: the flight (North America)
For olim from North America, Nefesh B'Nefesh provides free one-way flights from major cities — New York, Los Angeles, Miami, Boston and Toronto — including two checked bags at 50 lbs each.
It's more than a flight. You travel with dozens or hundreds of other new immigrants, NBN staff help with documents at both ends, and government processing for your ID card and immigrant certificate happens right at the airport — turning a bureaucratic maze into a shared arrival.
Where to start: your first weeks
A short checklist for the opening stretch:
Open an Israeli bank account and give the details to the Ministry for your remaining Sal Klita payments.
Book an appointment at the Population & Immigration Authority for your biometric ID card.
Register your children for school with the local education department.
Apply for your Arnona discount at the municipality.
If using the special first-year non-resident tax treatment, apply within 90 days of gaining resident status.
You're not alone: ongoing support
The help continues long after arrival. Nefesh B'Nefesh runs social events, workshops and seminars across employment, healthcare and education; its post-aliyah coordinators stay reachable, and active online communities connect olim to share advice.
There are specialised tracks, too: lone soldiers and national-service volunteers get housing help and community support, and medical professionals can fast-track Israeli credentials through the MedEx programme, which also connects them with hospitals and clinics.
Make it count
The benefits are worth hundreds of thousands of shekels over your first decade — but only if you understand what's available, meet the deadlines, and time big decisions (a home purchase, a career move, studies) to land within the right benefit windows.
Tax deserves special care. The interplay between Israeli benefits and your home-country obligations is genuinely complex, and many olim realise years later that they could have structured things better. A consultation with an accountant experienced in olim taxation is a small price for getting it right. B'hatzlacha.
General information for olim, current as of 2026 — not personal tax, legal or financial advice. Benefits, figures and tax rules change (notably the 2026 reporting reforms); verify current details with official government sources and consult an accountant experienced in olim taxation before acting.
Want help mapping these benefits to your own situation and timing? Olim Advice offers free guidance to every oleh — reach out and we'll walk you through it.