Complete Guide to Israeli Government Benefits for Olim
Making Aliyah comes with a comprehensive package of government benefits designed to help you settle in Israel. From the Sal Klita absorption basket to 10-year tax exemptions, free healthcare, and housing assistance — here's everything you're entitled to as a new Oleh.
Key Benefits at a Glance
Benefits Timeline
Key deadlines and windows for claiming your Olim benefits. Don't miss these important dates.
Sal Klita first payment, Health insurance enrollment, Teudat Oleh
Sal Klita monthly payments, Start Ulpan, Open bank account
90% Arnona discount, Rental assistance application, Driver's license conversion
Vehicle purchase tax discount, Customs duty exemption, University tuition assistance
Mas Rechisha (purchase tax) discount on first property
Foreign income tax exemption (no reporting required)
Subsidized mortgage (Mashkanta) eligibility
All Benefits by Category
Detailed breakdown of every benefit available to new Olim, with eligibility requirements, amounts, and links to official government resources.
Financial Grants & Absorption Basket (Sal Klita)
Direct financial assistance to help new Olim settle in Israel during the first months.
Sal Klita (Absorption Basket)
A series of cash payments to help cover initial living expenses. Paid in installments over 6 months after arrival. The first payment is available immediately at the airport or Ministry of Aliyah office.
Rental Assistance
Monthly rental subsidy for Olim who do not own property in Israel. Amount varies by city and family size. Applied for through the Ministry of Aliyah after the Sal Klita period ends.
Supplementary Absorption Grant
Additional one-time grants for Olim in specific situations, such as those over 55, single parents, or families with special needs children.
Tax Benefits & Exemptions
Significant tax advantages that can save Olim hundreds of thousands of shekels over the benefit period.
Foreign Income Tax Exemption
Complete exemption from Israeli tax on all foreign-sourced income including investments, pensions, rental income, business income, and capital gains from assets acquired before Aliyah. No reporting requirement for these sources.
Mas Rechisha (Purchase Tax) Discount
Reduced purchase tax rates when buying your first apartment in Israel. Olim pay significantly lower rates compared to regular buyers, especially on the first ₪1.9M of the purchase price.
Income Tax Credits
Additional tax credit points (nekudot zikui) that reduce your Israeli income tax. Worth approximately ₪2,904 per credit point annually (2025 rates).
Customs Duty Exemption
Exemption from customs duties on personal belongings, household goods, and appliances shipped to Israel. Includes one vehicle with significantly reduced purchase tax.
Education & Hebrew Language (Ulpan)
Free Hebrew language education and support for academic studies in Israel.
Free Ulpan (Hebrew Language Course)
Intensive Hebrew language course (Ulpan Aleph) provided free of charge. Typically 5 months, 5 days a week. Available in morning or evening formats. Some ulpanim also offer professional Hebrew for specific fields.
University Tuition Assistance
Subsidized tuition at Israeli universities and colleges. Olim receive reduced tuition rates and may qualify for additional scholarships through the Ministry of Aliyah and individual institutions.
Professional Licensing Assistance
Support for converting foreign professional licenses (doctors, lawyers, engineers, accountants, etc.) to Israeli equivalents. Includes exam preparation courses and fee subsidies.
Healthcare (Kupat Cholim)
Immediate access to Israel's universal healthcare system.
National Health Insurance
Immediate enrollment in one of Israel's four health funds (Kupot Cholim): Clalit, Maccabi, Meuhedet, or Leumit. Covers doctor visits, hospitalization, medications, and more. You choose your health fund upon arrival.
Supplemental Health Insurance
Optional supplemental plans (Shaban) available from each health fund for additional coverage including dental, alternative medicine, and private specialist consultations. Olim can join without waiting periods.
Employment & Career Support
Programs to help Olim find employment and integrate into the Israeli job market.
Employment Centers (Merkaz Tasa'uka)
Dedicated employment centers for Olim offering job placement services, resume writing, interview preparation, networking events, and career counseling in multiple languages.
Professional Retraining Programs
Subsidized retraining programs for Olim who need to change careers or adapt their skills to the Israeli market. Programs available in tech, healthcare, education, and other fields.
Startup & Entrepreneurship Support
Programs for Olim entrepreneurs including business incubators, mentorship, and small business loans. Organizations like the Jewish Agency and various accelerators offer specific tracks for new immigrants.
Housing & Mortgage Benefits
Assistance with finding housing and favorable mortgage terms for Olim.
Mortgage Benefits (Mashkanta)
Olim are eligible for subsidized mortgage loans from Israeli banks. Terms include lower interest rates and higher loan-to-value ratios compared to non-Olim. The Ministry of Construction provides mortgage assistance programs.
Public Housing (Amidar/Amigur)
Eligible Olim can apply for public housing through Amidar or Amigur. Priority is given to large families, elderly Olim, and those with special needs.
Arnona (Municipal Tax) Discount
New Olim receive a 90% discount on Arnona (municipal property tax) for the first year. This applies to the property where you live, whether rented or owned.
Military Service (IDF) & National Service
Information about military obligations and exemptions for Olim.
Shortened Military Service
Olim who arrive after age 22 (men) or 20 (women) receive shortened or exempted military service. Those who do serve receive additional financial benefits and educational grants.
Lone Soldier Benefits
Olim who serve in the IDF without family in Israel ('lone soldiers') receive additional financial support, housing assistance, and a dedicated support network.
Vehicle & Transportation
Benefits for purchasing a vehicle and using public transportation.
Vehicle Purchase Tax Reduction
Significant reduction on the purchase tax for one new or used vehicle. The standard purchase tax in Israel can be 50-80% of the vehicle's value, so this discount saves tens of thousands of shekels.
Driver's License Conversion
Olim can convert their foreign driver's license to an Israeli license without taking a full driving test (for licenses from most countries). A brief eye test and administrative process is required.
Family & Children Benefits
Support for Olim families with children.
Child Allowance (Kitzba)
Monthly child allowance from Bituach Leumi (National Insurance) for each child under 18. Paid automatically once registered. Amount increases with more children.
Daycare Subsidies
Subsidized daycare (ma'on) for children of working parents. Olim may qualify for additional subsidies beyond the standard rates based on income level.
Education System Integration
Free public education from age 3 (compulsory from age 5). Schools provide Hebrew language support for Olim children. Some cities have dedicated 'absorption classes' for new immigrant children.
National Insurance (Bituach Leumi)
Social security benefits and insurance coverage.
National Insurance Coverage
Automatic enrollment in Israel's National Insurance system providing unemployment insurance, disability insurance, work injury coverage, maternity benefits, and old-age pension.
Unemployment Benefits
Olim who work and lose their job are eligible for unemployment benefits after meeting minimum employment requirements (reduced requirements compared to non-Olim).
Related Tools & Guides
Frequently Asked Questions
How long do Olim benefits last?
Most Olim benefits have a defined window. The Sal Klita (Absorption Basket) is paid over the first 6 months. Tax benefits on foreign income last 10 years. Customs exemptions apply for the first 3 years. Arnona discounts last 1 year. Each benefit has its own timeline, so it's important to apply within the eligibility window.
Do I need to be Jewish to receive Olim benefits?
Olim benefits under the Law of Return are available to Jews, their children, grandchildren, and their spouses. The specific eligibility criteria are defined by the Law of Return (1950) and the Citizenship Law. Non-Jewish family members who make Aliyah with eligible relatives also receive most benefits.
Can I receive Olim benefits if I already lived in Israel?
If you previously held Israeli citizenship or were a permanent resident, your eligibility may be affected. 'Returning residents' (Toshav Chozer) have a separate benefits package. Those who left Israel as minors and return as adults may qualify for full Olim benefits. Consult the Ministry of Aliyah for your specific case.
How do I apply for the Sal Klita (Absorption Basket)?
The Sal Klita is automatically initiated when you arrive in Israel and register at the airport or at a Ministry of Aliyah office. You'll receive the first payment immediately and subsequent payments over 6 months. You need to open an Israeli bank account to receive the payments.
What tax benefits do Olim get on foreign income?
New Olim receive a 10-year exemption from reporting and paying Israeli tax on foreign-sourced income, including investments, pensions, rental income, and capital gains from assets acquired before Aliyah. This is one of the most significant financial benefits of Aliyah.
Can Olim buy a car tax-free?
Olim receive a significant reduction (not full exemption) on purchase tax for one vehicle within 3 years of Aliyah. The discount is typically 50-75% off the standard purchase tax, which can save tens of thousands of shekels. The exact discount depends on the vehicle's engine size and value.
Disclaimer: This guide is for informational purposes only and is based on publicly available information from the Ministry of Aliyah and Integration, Nefesh B'Nefesh, and other official sources as of 2025. Benefit amounts, eligibility criteria, and regulations may change. Always verify current benefits with the relevant government ministry or your Aliyah organization before making financial decisions. Bruchim Habaim is not a government agency and does not process Aliyah applications or benefit claims.
Sources: Ministry of Aliyah and Integration (gov.il), Nefesh B'Nefesh (nbn.org.il), Israel Tax Authority, Bituach Leumi, Jewish Agency for Israel.