Financial Checklist
The Financial Move Checklist: Sorting Your Money for Aliyah, in the Right Order
Aliyah is a financial project as much as an emotional one — and the people who arrive least stressed are usually the ones who worked through the money questions in sequence rather than all at once. This is that sequence: what to sort before you leave, what to set up in your first year, and what to keep on top of ongoing.
The recurring theme is to engage professionals who understand both your home-country and Israeli systems, because the dual picture — especially for US citizens — is where the real complexity lives.
The one piece of advice that underpins the rest
Line up an accountant who specialises in US–Israel (or UK–Israel) matters before you move, not after. Several decisions — the timing of your aliyah, what to do with investments, when to realise gains — are far cheaper to get right in advance than to fix later. The fee is trivial against what good timing can save.
A note on the tax points: new olim get a 10-year exemption on genuinely foreign-source income, but for arrivals from 2026, that income must now be reported even though it stays untaxed, and a new temporary Israeli-income exemption may also apply. These rules changed recently, so a specialist accountant should confirm your position.
Phase 1 — Before you leave: banking and credit
Almost everything in your first Israeli year — salary, direct debits, the arnona file, the absorption basket — routes through a bank account and a clean credit position. Sorting the home-country side while you still have easy access to it is far simpler than reaching back across an ocean later.
Banking and accounts: notify your home bank of the move and an international address; set up online banking for all home-country accounts; consider keeping a home-country account open for ongoing obligations; research Israeli banks (Leumi, Hapoalim, Discount and others); understand the requirements for opening an Israeli account; and get documents apostilled if your bank or the authorities will need them.
Credit and loans: check your credit score and resolve any issues while you still can; pay off or make a plan for existing debts; understand how your home-country cards work internationally; keep at least one home-country credit card active; and notify card companies of the move so transactions aren't blocked.
Phase 1 — Before you leave: tax, retirement and insurance
This is the dual picture, settled in advance.
Taxes: consult a tax professional experienced in US–Israel (or UK–Israel) matters; understand your home-country expat obligations (for US citizens, FBAR and FATCA); research Israeli tax-residency rules and when residency begins; decide your tax status for the year of aliyah (and whether to use an adjustment year); record all financial accounts and assets as of your move date; and set up a system for filing in both countries.
Retirement and investments: review your 401(k), IRA, pension and other retirement accounts; understand the tax treatment of keeping home-country retirement accounts; research Israeli options (keren hishtalmut, bituach menahalim); get advice on PFIC rules before holding or selling foreign funds (US citizens); decide whether to keep or liquidate investments, timing any sales deliberately; and update beneficiaries.
Insurance: review and update life insurance and check it travels with you; understand health cover during the transition before Israeli cover starts; research the Israeli health funds (kupot cholim) and supplemental cover; and update addresses on all policies.
Phase 2 — Your first year: getting established
The first months are about putting the basic financial infrastructure in place, in roughly this order, since several steps depend on the ones before.
The essential setup: obtain your teudat zehut (Israeli ID number); open an Israeli bank account; register with the tax authority (Mas Hachnasa); choose and register with a kupat cholim (health fund); apply for Sal Klita (absorption basket); and research your oleh benefits and tax exemptions, diarising the deadlines.
Order matters here: the teudat zehut unlocks the bank account; the bank account unlocks salary, direct debits and Sal Klita; tax registration shapes how your income is treated. Work top to bottom rather than chasing whichever office answers the phone first.
Income and employment: learn the Israeli salary structure (gross vs net, and the deductions); negotiate pay with Israeli cost of living in mind, not just the headline number; set up pension contributions with your employer; understand Israeli employment law and your benefits; register as self-employed (osek patur / osek murshe) if that applies; and plan for irregular income during the transition.
Phase 2 — Your first year: money and living costs
Currency and transfers: set up a reliable method for moving money between countries; compare exchange services (Wise, OFX and similar licensed providers); understand shekel–dollar (or shekel–sterling) fluctuations; plan a currency strategy for large purchases rather than converting it all at once; keep emergency funds in both currencies during the transition; and remember the declaration rule — ₪50,000+ by air, ₪12,000 by land.
Housing and living costs: build a realistic budget for the Israeli cost of living; understand the rental market, including arnona and va'ad bayit on top of rent; factor in utilities (electricity in particular can be a meaningful cost); budget for furniture and the one-off cost of setting up a home; and weigh transport costs — a car versus public transit — for where you'll live. Your first-year budget is also the raw material for the rent-vs-buy question.
Phase 3 — Ongoing: annual filing and the long game
Annual requirements: file home-country taxes annually (for US expats, typically due mid-June); file Israeli taxes where required (commonly due around end of April); file FBAR if your foreign accounts exceed the US$10,000 threshold (US citizens); keep your records of foreign bank accounts up to date; and report foreign income if you arrived from 2026, even though it stays tax-exempt. Exempt is not the same as invisible — build the reporting into your annual filing from year one.
Long-term planning: review and rebalance investments once a year; build an emergency fund in shekels (aim for three to six months of expenses); contribute to Israeli pension and retirement savings; review insurance as your family situation changes; plan for children's education costs; consider buying a home in Israel once you're settled and the timing fits; and update estate-planning documents to work across both countries.
Build your professional bench
Find an English-speaking accountant in Israel who knows oleh taxation; keep a relationship with a home-country tax professional too; consider a financial planner familiar with cross-border (US–Israel) issues; and join oleh and expat groups for practical, current, on-the-ground tips.
A few facts worth knowing early: the Israeli financial year runs January–December; the currency is the shekel (₪ / ILS); many Israeli employers pay monthly, not bi-weekly; Bituach Leumi (National Insurance) is mandatory and deducted from pay; and new olim may qualify for significant tax benefits over their first ten years, understood correctly.
If you do only three things
Engage a US–Israel (or UK–Israel) accountant before you move, not after.
Work the phases in order — each step unlocks the next.
Claim what olim are owed and diarise the deadlines, because the benefits are real but rarely automatic.
There is a lot here, but it is all just sequence and preparation. Get the accounts opened, the tax position understood, the benefits claimed and the budget built, and the financial side of aliyah quietly recedes into the background — leaving you free to focus on the life you came here for.
This checklist is general information and is not legal, tax, or financial advice. Filing dates, thresholds, benefit rules and cross-border tax treatment vary by individual circumstance and change over time (several oleh tax rules changed for 2026). Confirm current requirements and engage professionals who specialise in both your home-country and Israeli systems before acting.
Olim Advice — free advice for every oleh. Join the Olim Advice Circle at olimadvice.com.