Olim housing rights: purchase tax, rent assistance, mortgage, arnona, customs and tax (2026)

A new immigrant (oleh chadash) buys and rents in Israel with a set of rights that no other buyer from abroad has: reduced purchase tax inside a benefit window, rent assistance paid automatically after the absorption basket, duty-free household shipments, an arnona discount at the municipality’s discretion, and a ten-year exemption from Israeli tax on income earned abroad. According to Semerenko Group’s CRM, 109 client records are people planning aliyah or recently arrived (18 October 2026); most asked for Beit Shemesh, Jerusalem and Tel Aviv, and more came to rent first than to buy. Every figure below is from a government page or directive, with its date.

0.5%oleh purchase tax on the band above ₪1,978,745

75%Bank of Israel loan ceiling for a sole dwelling (no separate oleh ceiling)

10 yearsexemption from Israeli tax on income from abroad

109clients planning aliyah or recently arrived, in our CRM

Purchase tax: the oleh brackets and the window

Purchase tax (mas rechisha) brackets in force, by buyer type
Buyer	Price band	Rate on that band
Israeli resident, only home	₪0 to ₪1,978,745	0%
Israeli resident, only home	₪1,978,745 to ₪2,347,040	3.5%
Israeli resident, only home	₪2,347,040 to ₪6,055,070	5%
Israeli resident, only home	₪6,055,070 to ₪20,183,565	8%
Israeli resident, only home	above ₪20,183,565	10%
Foreign resident, or an additional home	₪0 to ₪6,055,070	8%
Foreign resident, or an additional home	above ₪6,055,070	10%
New immigrant (oleh), home bought within the benefit window	₪0 to ₪1,978,745	0%
New immigrant (oleh), home bought within the benefit window	₪1,978,745 to ₪6,055,070	0.5%
New immigrant (oleh), home bought within the benefit window	₪6,055,070 to ₪20,183,565	8%

Israel Tax Authority brackets for 16 January 2026 to 15 January 2027 as held in Semerenko Group’s fact registry, verified 2026-10-16. The oleh table above ₪20,183,565 is not in our registry; the Tax Authority directive governs. The tax is cumulative: each band is taxed at its own rate.

The Tax Authority directive for 16 January 2026 to 15 January 2027 lists the oleh single-home brackets above (Israel Tax Authority directive 1/2026). The relief applies to a home or business premises bought from one year before first arrival until seven years after (directive 1/2026), and can be requested once for a home and once for a business premises (Tax Authority service page, Page last updated 15.08.2024). For a ₪2,500,000 apartment that is ₪2,606 as an oleh against ₪20,538 as an Israeli resident buying an only home and ₪200,000 as a foreign resident. Compare the two tracks for your price in the purchase tax calculator; where the resident single-home track is cheaper, a resident oleh may use it instead.

Rent assistance (siyua b’schar dira)

For olim who received their status from 1 March 2024, the basic monthly rent assistance is ₪363 for an individual, ₪659 for a couple with or without children, and ₪739 for a single-parent family (gov.il, updated 12.10.2026). Olim living in the Negev, the Galilee or a national-priority community get a monthly supplement of ₪973, ₪1,341 or ₪1,500 on top (gov.il, Page updated 12.10.2026). It is paid automatically to the bank account used for the absorption basket, with no application, and starts only after the absorption basket payments end (gov.il, Page updated 12.10.2026). Procedure 429 sets the period from the 7th to the 30th month of status, 24 months in all; the published procedure carries an expiry date of 31 December 2025, so check the current page before you rely on the period (Ministry of Aliyah and Integration procedure 429).

Absorption basket (sal klita)

The absorption basket is financial aid for the first period in Israel, paid as living expenses during ulpan for six months; the first payment is at the airport (gov.il). The ministry’s 2026 table shows a total of ₪21,694 for an individual, ₪35,071 for a single-parent family and ₪41,359 for a couple (gov.il, updated 13.10.2026). Rent assistance begins when these payments end.

Household goods: three duty-free shipments

Olim who qualify can import up to three shipments in total without import taxes (Israel Tax Authority customs guide); the goods must arrive within the eligibility period of three years from the date oleh status is received (customs guide, Updated 30.07.2026). Shipping and the timeline are covered in Sal Klita 2026 and aliyah logistics.

Arnona discount

The Finance Ministry’s arnona guide lists a discretionary discount for a new oleh of up to 90%, on up to 100 square metres, for one year only, granted by the local authority (Ministry of Finance arnona guide, File dated 22-11-23 in its name). Each municipality decides whether and how it applies the discount, so ask the city’s arnona department when you register. Rates and payment: arnona in Israel.

Ten years without Israeli tax on income from abroad

New olim, and veteran returning residents who lived abroad for more than ten years, are exempt from Israeli tax for ten years on all income from outside Israel, passive and active (gov.il immigrant guide, updated 14.09.2026). The exemption from reporting foreign income and assets covers those who arrived by 31 December 2025; it does not apply to arrivals from 1 January 2026, who report even though the income stays exempt (gov.il, Updated 14.09.2026). Rent from a home you kept abroad is the common case this covers; confirm your own position with a tax adviser before you file.

Mortgage: no special ceiling, but the sole-dwelling track

Bank of Israel Directive 329 sets the maximum financing at 75% for a sole dwelling, 70% for a replacement dwelling and 50% for an investment dwelling, with no separate ceiling for olim (Bank of Israel, version 13, 06/26). An oleh buying a first home in Israel is normally inside the 75% track, which is the single biggest difference from buying as a non-resident. Income earned abroad is counted by the banks under their own rules: mortgages for olim and the mortgages after aliyah guide explain what they ask for; the capacity and budget planner applies the ceilings to your income and equity.

Where olim ask us to search

Of the 109 clients planning aliyah or recently arrived in our CRM, 57 came to rent and 32 to buy. Of the 106 who named a place, the most requested were Beit Shemesh (16), Jerusalem (15), Tel Aviv (11), Netanya (8), Haifa (7). Counts only; the method is on the Anglo Buyer Demand Index.

Beit Shemesh real estateprices, rents, neighbourhoods and live listings Jerusalem real estateprices, rents, neighbourhoods and live listings Tel Aviv real estateprices, rents, neighbourhoods and live listings Netanya real estateprices, rents, neighbourhoods and live listings Haifa real estateprices, rents, neighbourhoods and live listings Ashkelon real estateprices, rents, neighbourhoods and live listings

Rent first, then buy: the order most olim use

Most olim we work with rent for the first year while the rent assistance runs, the job and school situation settles, and the purchase tax window stays open (it runs until seven years after arrival). Our guides on that order: first aliyah apartment: rent first, buy later, start the housing search before aliyah and moving to Israel with family. Retirees: oleh retirement benefits.

How buying from abroad before aliyah works with us

Brief. Budget in your currency and in shekels, the cities or neighbourhoods, rooms, must-haves, and your timeline. We check the budget against recorded sales before searching.
Search and options page. We search every listing source and build a private options page with prices, sizes, photos and the facts we could verify. You choose what to see.
Viewings. In person when you are in Israel, by video when you are not. The buying process page explains each step.
Offer, lawyer, contract. An Israeli real estate lawyer represents you; a notarised and apostilled power of attorney lets the lawyer sign for you when you are abroad. Guide: the purchase lawyer.
Financing and transfer. Mortgage approval if you borrow, then the staged payments through the lawyer’s trust account.
Tax and registration. Purchase tax is reported and paid after signing; the property is registered in the Land Registry (Tabu) or with the relevant registry. Guide: registering property in Israel.

Our buyer fee is 2% plus VAT on a purchase, paid at closing; everything else we do before that is free. Full terms: how Semerenko Group gets paid.

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Frequently asked questions

How much purchase tax does an oleh pay?

Inside the benefit window (from one year before first arrival to seven years after) a single home carries no tax up to ₪1,978,745, 0.5% on the band up to ₪6,055,070 and 8% on the band up to ₪20,183,565, per the Tax Authority directive for 16 January 2026 to 15 January 2027. The relief can be used once for a home and once for a business premises.

How much rent assistance do new olim get?

For status from 1 March 2024: ₪363 a month for an individual, ₪659 for a couple and ₪739 for a single-parent family, plus ₪973, ₪1,341 or ₪1,500 in the Negev, the Galilee and national-priority communities. It is paid automatically after the absorption basket ends, for months 7 to 30 of status under procedure 429 (gov.il, updated October 2026).

Do olim get a bigger mortgage?

No. Bank of Israel Directive 329 has no separate ceiling for olim. An oleh buying a sole dwelling is normally financed in the 75% track, while a non-resident buyer is generally limited to the 50% investment track, which is the real difference.

Is my income from abroad taxed in Israel after aliyah?

New olim are exempt from Israeli tax for ten years on income from outside Israel, passive and active. Those arriving from 1 January 2026 must report that income even though it stays exempt; earlier arrivals keep the reporting exemption (gov.il immigrant guide).

Sources

This is general information, not legal or tax advice; confirm with a licensed professional.

Verified 2026-10-18 by Chaim Semerenko, Semerenko Group; brokerage under broker of record Pinchas Menachem Reis, licence 324150.