Oleh? Special Report: Seven Financial Tips Worth Over One Million Shekels
Welcome! As a new immigrant (Oleh), you stand before an extraordinary financial opportunity that can impact your entire economic future. Data from the Ministry of Aliyah and Integration shows the average age of an Oleh is around 34, which means you have plenty of time to build your life smartly. If you apply this knowledge correctly, you could save over one million shekels over the years.
1. Income Tax Exemption on Investments – The Biggest Saving of All
This is the most important benefit, and it can save you hundreds of thousands of shekels. For ten years from the date of your Aliyah, you are exempt from capital gains tax on profits from financial assets (such as stocks, bonds, and funds) you owned abroad before your Aliyah. To claim this benefit, you must document the value of your portfolio on the day you arrived. Any profit accumulated beyond that value, up to the end of the 10-year period, will be exempt from capital gains tax.
An average Oleh arriving with an investment portfolio worth 500,000 shekels can, with proper management, generate significant profits. Assuming an average annual return of 8%, this could save nearly 40,000 shekels a year in capital gains tax. Over a decade, this represents a potential saving of hundreds of thousands of shekels. Olim who sell their assets before making Aliyah lose this immense advantage, as their home country will tax them instead of Israel.
2. Tax Benefits on Pension Savings – 132,000 Shekels on the Way to Retirement
The average salary in Israel is around 12,739 shekels per month, but many new Olim may earn less at the start of their careers. Therefore, every shekel you save is crucial. As a new Oleh, you have unique tax benefits on your contributions to pension savings plans for 10 years. Statistical data shows that a new Oleh earning the average salary and correctly utilizing these tax benefits can increase their pension fund by 132,000 shekels (in the long-term calculation) through these benefits alone.
3. Bituach Leumi (National Insurance) – Tens of Thousands of Shekels in Savings
Here you can start saving money from the very first month. New Olim are exempt from paying Bituach Leumi fees during the first few months after their Aliyah. If you are working and earning over 12,000 shekels a month, you can save thousands of shekels directly from your pocket in a short period. Furthermore, understanding your rights with Bituach Leumi (such as child allowances, unemployment benefits in case of dismissal, etc.) ensures you receive everything you are entitled to, a saving that adds up to tens of thousands of shekels over the years.
4. Opening a Bank Account and Investments – Savings of Thousands of Shekels
Even in the most basic step, there is potential for savings. Most banks offer special “Oleh Chadash” packages that include an exemption from account management fees for up to three years. This saving, compared to regular fees, can amount to hundreds of shekels per year, totaling thousands of shekels over the benefit period. Additionally, it’s essential to choose the right bank and investment track to avoid unnecessary fees on investments and trading.
5. Beyond Oleh Benefits: Money that Evaporates from Your Pocket Every Month
Beyond the unique benefits, new Olim often pay more for financial products that are relevant to everyone—and this comes at a high cost.
6. Pension and Long-Term Savings
An average new Oleh arriving at age 34, earning an average salary of 12,739 shekels, is expected to save for retirement for 30 years. Management fees in Israel are divided between contributions and accumulated savings. The legal maximum management fees are 6% on contributions and 1.05% on accumulated savings, while the average fees achievable through successful negotiation are much lower, and can be around 2% on contributions and 0.25% on accumulated savings.
If a new Oleh does not negotiate their management fees and pays the maximum, they could pay around 250 shekels more per month. Over 30 years, this difference can amount to a saving of over 250,000 shekels that simply disappears from your pension.
7. Insurance – Paying Less for More
First – Hebrew is complicated: And insurance in Hebrew? Even more so. When you don’t fully understand your policy, you may end up overpaying for no reason.
Second – Price Comparison: Olim often compare insurance prices in Israel to what they paid in the US or UK. Compared to those prices, Israeli insurance might seem cheaper. But in reality, you are still paying more than you could be.
In many cases, insurance agencies report savings of more than 1,000 shekels a month on insurance costs by precisely matching coverage to actual needs and preventing duplication.
Want to enjoy special benefits for Olim? Discounted insurance + free financial planning + 2 free booklets?
