How to move to Israel from the US: a complete guide for expats
Israel is not a traditional immigration destination, but roughly 3,500 Americans moved there in 2025 – up 30% from 2023. The country combines a technology economy that rivals Silicon Valley in output per capita with a layered immigration system that treats Jewish and non-Jewish applicants very differently. Moving to Israel from the USA means navigating two parallel systems: Israeli immigration law and the IRS. This guide covers both.
Key takeaways
- The Law of Return is the primary path for Jews and their immediate family. It confers immediate citizenship and access to the Sal Klita absorption basket.
- A 10-year Israeli tax holiday exempts new residents from Israeli tax on foreign-sourced income – but Olim who established Israeli tax residency on or after January 1, 2026, must now report that income annually to the Israel Tax Authority.
- Tel Aviv prices are comparable to New York City for housing and consumer goods, though peripheral cities like Haifa and Beer Sheva cost significantly less.
- US citizens must continue filing with the IRS regardless of Israeli tax status. Form 1040, FBAR, and FATCA obligations do not pause during the 10-year holiday.
Taxes for Expats (TFX) has helped over 50,000 US citizens abroad stay IRS-compliant since 2008. For an overview of why the US taxes its citizens worldwide, see our guide on citizenship-based taxation.
Why move to Israel? Benefits and challenges
Immigrating to Israel from the USA offers a Mediterranean climate, universal public healthcare ranked in the global top 10, and strong personal safety for families – alongside some of the world's most intense bureaucracy and a cost of living that routinely surprises American arrivals. Israel is consistently listed as one of the most expensive countries globally, and Tel Aviv prices rival New York City in several categories.
- Pros: Mediterranean climate, a healthcare system funded by the state from day one, a vibrant social life built around community, and a high-tech job market that communicates in English. Israel also offers one of the most generous immigration benefit packages in the world for qualifying Jewish immigrants.
- Cons: Bureaucracy that requires patience and often local Hebrew language skills, a language barrier that affects daily life outside the tech sector, and a significant cost-of-living premium over most US cities outside New York. New arrivals also report a period of cultural adjustment that extends beyond the first year.
The following table compares key daily and household costs between the United States and Israel. Israel is broadly more expensive than the US average for housing, utilities, and gasoline, but cheaper for public transport and certain fresh foods.
| Category | Item | United States | Israel |
|---|---|---|---|
| Restaurants | Inexpensive restaurant meal | $20.00 | $28.30 |
| Mid-range meal for two | $76.00 | $93.00 | |
| McDonald's combo meal | $12.00 | $15.00 | |
| Cappuccino | $5.40 | $4.20 | |
| Groceries | Milk (1 liter) | $1.06 | $2.54 |
| White bread loaf | $3.29 | $2.50 | |
| Eggs (12) | $4.36 | $4.20 | |
| Chicken fillets (1 kg) | $12.37 | $10.50 | |
| Beef round (1 kg) | $16.99 | $18.00 | |
| Apples (1 kg) | $5.27 | $3.80 | |
| Transport | One-way local ticket | $2.50 | $2.83 |
| Monthly pass | $65.00 | $60.00 | |
| Gasoline (1 liter) | $0.93 | $2.10 | |
| Housing | 1-BR apartment (city center) | $1,653 | $1,479 |
| 1-BR apartment (outside center) | $1,368 | $1,050 | |
| Utilities | Basic utilities (85m² apartment) | $214 | $310 |
| Education | Private preschool per child/month | $1,453 | $1,352 |
| International/private school (annual) | – | $11,000–$19,000 |
Source: Numbeo, 2025. See the full US–Israel cost-of-living comparison on Numbeo for a broader breakdown. Those figures reflect national averages; Tel Aviv runs materially higher.
For a side-by-side view of how Israel stacks up against other popular relocation destinations, read our guide to the best countries to move to from the USA.
The primary path: making Aliyah (repatriation)
Making Aliyah – the Hebrew word for "ascent" – is the formal term for Jewish immigration to Israel and the most direct, financially supported route into the country. Under the Law of Return (1950), any Jew, child or grandchild of a Jew, and their spouses are entitled to Israeli citizenship as a matter of right, not discretion. Jews making Aliyah do not go through a standard immigration process; they are exercising a statutory right.
The two organizations that guide North American applicants through the process are The Jewish Agency (Sohnut) and Nefesh B'Nefesh. Both provide pre-departure orientation, document review, and arrival coordination at no cost to the applicant.
Upon arrival, new Olim (immigrants) receive the Sal Klita – the "Absorption Basket" – a direct financial grant from the Ministry of Aliyah and Integration designed to cover living expenses during the first year of settlement. The grant begins with an initial payment at Ben Gurion Airport, followed by 6 monthly installments directly to your Israeli bank account. A single Oleh receives approximately ₪1,300–₪1,500 per month; couples and families receive larger amounts adjusted for family size and age. The Sal Klita is tax-free under Israeli law.
New Olim receive the Teudat Oleh (immigration certificate) on arrival and subsequently obtain the Teudat Zehut (Israeli national ID card), which confirms full Israeli citizenship.
Step-by-step Aliyah process for Americans
The Aliyah process for Americans typically takes 3–6 months from initial contact to departure, with Nefesh B'Nefesh shortening the timeline considerably for North American applicants. The following 4 steps outline the core process:
Step 1: Gather documentation. The primary requirement is proof of Jewish heritage – your own birth certificate and, where applicable, a parent's or grandparent's birth certificate, Jewish conversion documents, or marriage certificate. Spouses who are not Jewish need their marriage certificate to qualify under the Law of Return.
Step 2: Apply through Nefesh B'Nefesh or The Jewish Agency. Complete the Aliyah application through Nefesh B'Nefesh, upload supporting documents, and schedule a consular interview at the nearest Israeli consulate or embassy in the US.
Step 3: Receive the Aliyah Visa. After a successful interview, the Israeli consulate issues the Aliyah Visa. This is a one-time-use immigration entry document, valid for one year from the date of issue.
Step 4: Finalize citizenship in Israel. Upon arrival at Ben Gurion Airport, collect the Teudat Oleh, receive the first Sal Klita installment, enroll with Bituach Leumi (National Insurance), and choose a Kupat Cholim (health fund). The Teudat Zehut follows within weeks. This final step converts the Aliyah Visa into full Israeli citizenship.
Moving to Israel for non-Jews: visa options
Non-Jewish Americans can move to Israel, but the pathway is narrower and more conditional than Aliyah. Israel does not have a general points-based or skilled-worker immigration program for non-Jews. Legal long-term residence requires meeting a specific qualifying category. The 3 principal visa options available to Americans are as follows:
- B/1 Work Visa. Requires a signed employment offer from an Israeli employer, who must first obtain a work permit from the Ministry of Interior on the applicant's behalf. This is the most common route for American professionals hired by Israeli technology companies, international firms with Israeli offices, or academic institutions.
- A/2 Student Visa. Available to Americans enrolling in an accredited Israeli university or recognized academic program. Typically issued for one year and renewable for the duration of study. Work authorization is generally not included.
-
B-5 Investor Visa. Exclusive to US citizens – this visa reflects the bilateral investment relationship between the US and Israel, which mirrors the E-2 investor treaty visa that Israeli citizens can use in the United States. To qualify, you must make a substantial investment in an Israeli business, hold at least 50% ownership, and operate the business from Israel. The B-5 is initially issued for 2 years and is renewable without a fixed cap, provided the business continues to meet requirements.
Applications are handled through designated Israeli consular posts in the US: Washington DC, New York, Houston, Chicago, and San Francisco. Key employees who are also US nationals can qualify for derivative B-5 status, and immediate family members receive accompanying visa status. If you are researching how to move to Israel as a non-Jew, the B-5 is the most viable long-term option for business owners and investors. - Family reunification. Non-Jewish spouses of Israeli citizens can apply for family reunification. The process involves annual interviews confirming the marriage's authenticity, a graduated residency pathway, and typically requires demonstrated integration, including Hebrew language acquisition.
Cost of living in Israel
Israel is an expensive country, and Tel Aviv – the financial and technology capital – consistently ranks among the top 10 most expensive cities globally. Americans moving from most US cities outside New York will find the cost of living at or above what they left behind.
Housing costs vary sharply by location. The following table shows typical rental and property price benchmarks across the country. In Tel Aviv, a modern 1-bedroom apartment in the city center can run $2,500 per month, while the same type of apartment in Haifa or Beer Sheva costs $800–$1,300.
| Location | Property type | Monthly rent (USD) |
|---|---|---|
| Tel Aviv – city center | 1-BR modern apartment | $1,800–$2,500 |
| Tel Aviv – city center | 3-BR apartment | $3,000–$4,500 |
| Periphery (Haifa / Beer Sheva) | 1-BR apartment | $800–$1,300 |
| National average | 1-BR city center | $1,479 |
| National average | 1-BR outside center | $1,050 |
| United States | Israel | |
|---|---|---|
| Property: price per m² (city center) | $3,335 | $10,622 |
| Mortgage: typical down payment | 10–20% | 25–40% |
(Source: Numbeo, 2025.)
Buying property comes with a significant upfront requirement: Israeli mortgage lenders require a down payment of 25–40% for non-residents – substantially higher than the US standard. Property prices in Israeli city centers average $10,622 per square meter, versus $3,335 in the US.
Israel's public healthcare is universal and funded by the state from day one for new Olim, who are also exempt from national health contributions for the first 6 months. Coverage does not include dental or vision care, which most families address through supplemental private insurance. International or private K–12 schooling costs between $11,000 and $19,000 per year.
Finding a job in the Startup Nation
Israel has one of the highest densities of technology start-ups per capita in the world, earning the country the widely used name "Startup Nation." English is the standard corporate language in Israel's high-tech sector, making the job market genuinely accessible to American professionals without Hebrew – at least at the entry point.
Outside of tech, the employment picture is more complicated. Healthcare, law, education, and government roles typically require Hebrew fluency and Israeli-recognized credentials. Americans who succeed in the Israeli job market generally arrive with technology skills in demand, direct employer sponsorship, or an established professional network. The wage gap between the tech sector and the rest of the economy is significant; senior tech roles pay well by any standard, but mid-level roles in non-tech industries rarely keep pace with Israel's cost of living.
Popular cities for Americans in Israel
The right city depends on your work, budget, and lifestyle priorities. The following 4 locations account for the large majority of American settlements in Israel:
Tel Aviv is Israel's economic engine – urban, dense, English-speaking, and expensive. It draws tech workers, entrepreneurs, and younger professionals. Beaches, restaurants, and nightlife make it feel more international than any other Israeli city.
Jerusalem is the cultural and religious center of the country and home to a significant academic and non-profit sector. Americans connected to religious institutions, universities, or NGOs tend to settle here. The pace is slower and the social environment more layered than Tel Aviv.
Ra'anana, in the central district, is informally known as the "American hub" of Israel. Strong English-language community services, international schools, and well-established Anglo social networks make it one of the most welcoming first landing points for American Olim. For US expat tax details relevant to wherever you settle, see our US expat tax guide for Americans in Israel.
Haifa is Israel's northern port city, home to the Technion (one of the world's top technology universities) and a long tradition of Jewish-Arab coexistence. It is substantially cheaper than Tel Aviv and offers a quieter, less pressured lifestyle.
Finding housing in Israel
Most Americans start with a short-term furnished rental or a month-to-month arrangement for the first few months before committing to a standard annual lease. Standard Israeli leases run 12 months and are written in shekels, though landlords in areas with high concentrations of English-speaking expats sometimes agree to price in US dollars.
Yad2 is the main real-estate portal in Israel and the best source for live listings – though the site is in Hebrew only. For English-language listings and broader community support, Janglo is widely used among the Anglo expat community. Many Americans also rely on city-specific Facebook groups for "Anglo" communities in Tel Aviv, Jerusalem, and Ra'anana.
Lease requirements typically include proof of employment or income, a post-dated check arrangement (standard practice in Israel), and occasionally a guarantor. Very recent Olim without an Israeli credit history may face additional scrutiny from landlords. Real estate agents typically charge one month's rent as a fee.
Schools and education in Israel
Israeli public schooling is free through grade 12 and taught primarily in Hebrew. For American families with younger children, integration into the public school system is realistic; for teenagers arriving without Hebrew, the adjustment is significantly harder. The Ministry of Education supports Ulpan (intensive Hebrew language) programs for new immigrant children.
Religious public schools – both National-Religious (Dati) and Haredi – are also free and widely available across the country. International and private schools exist primarily in Tel Aviv and Jerusalem. Understand how the American International School of Jerusalem (AISJ) compares to public options before committing; AISJ follows a US-aligned curriculum and is among the most popular choices for American expat families, with annual tuition in the $11,000–$19,000 range.
Healthcare system in Israel
Israel's public healthcare is among the best in the developed world and is available to new Olim from day one. Upon arrival, you select one of 4 state-recognized health funds – Clalit, Maccabi, Meuhedet, or Leumit. All four cover comprehensive medical care, specialist access, and prescription drugs at low co-pays.
New Olim are exempt from Bituach Briyut (national health insurance contributions) for the first 6 months. Standard public healthcare does not cover dental or vision, which most families address with supplemental coverage. For guidance on coordinating US and Israeli insurance coverage during your transition, see our overview of expat health insurance options for US citizens abroad.
The 10-year tax holiday (Milchan Law) – and two critical 2026 updates
The 10-year Israeli tax exemption on foreign-sourced income is the most significant financial benefit for Americans making Aliyah, and it remains fully intact in 2026. Under Sections 14 and 97 of Israel's Income Tax Ordinance – informally called the Milchan Law – new Olim and veteran returning residents pay zero Israeli tax on all income and capital gains derived from assets outside Israel for 10 full years from the date they establish Israeli tax residency.
For a US citizen with a US brokerage account, rental property, pension accounts, or business income, this means a decade of zero Israeli tax exposure on that US-sourced income. Given that Israeli income tax rates reach up to 50% for high earners, the 10-year holiday represents a substantial planning window.
2026 reporting change. New Olim who establish Israeli tax residency on or after January 1, 2026 must now file annual Israeli tax returns and declare their foreign income and assets to the Israel Tax Authority, even though the 10-year exemption on paying Israeli tax remains intact. This is an administrative obligation, not a new tax liability, but failing to comply could jeopardize the exemption itself. Olim who established residency before January 1, 2026 retain the prior rule, which did not require reporting exempt foreign income during the benefit period.
Bituach Leumi 5-year exemption (February 2026). In February 2026, the Knesset unanimously passed an amendment to the National Insurance Law giving new American Olim a 5-year exemption from Bituach Leumi (Israeli National Insurance) contributions – provided they are actively paying US Social Security tax or self-employment tax. Previously, the absence of a US-Israel Totalization Agreement could expose self-employed Americans in Israel to both US self-employment tax and Israeli National Insurance contributions.
For 2025, the US self-employment tax rate is generally 15.3% – 12.4% for Social Security on net self-employment earnings up to the $176,100 Social Security wage base, plus 2.9% for Medicare with no earnings cap. A separate 0.9% Additional Medicare Tax may apply once combined Medicare wages and self-employment income exceed $200,000 for single filers, $250,000 for married couples filing jointly, or $125,000 for married individuals filing separately.
The new exemption covers Bituach Leumi only; Bituach Briyut, or health insurance contributions, remains separate and is not waived.
For a deeper look at how the two countries' tax systems interact, read our guide on how double taxation works and how to avoid it.
US expat taxes in Israel: what you need to know
The 10-year Israeli tax holiday does not touch your US tax obligations. The United States taxes its citizens and permanent residents on worldwide income regardless of where they live – a system known as citizenship-based taxation. Your IRS filing obligations begin in the year you move and continue for every year you remain a US citizen or green card holder, irrespective of what Israel charges.
The following 4 US obligations apply from the first year after making Aliyah:
- Form 1040. Your annual US federal tax return. The standard tax payment deadline is April 15. Americans abroad generally receive an automatic filing extension to June 15, and can request an extension to October 15 by filing Form 4868. Filing is required even if you owe $0 in US tax.
- FBAR (FinCEN Form 114). Required if the combined balance of your Israeli and other foreign financial accounts exceeded $10,000 at any single point during the tax year. Filed separately with FinCEN – not the IRS. A non-willful failure to file carries a penalty of up to $16,536 per violation (2025 schedule). See our detailed guide to FBAR filing requirements for which account types trigger the obligation.
- FATCA (Form 8938). Form 8938 thresholds are higher for many Americans living abroad. For 2025, an unmarried taxpayer living abroad generally files Form 8938 if specified foreign financial assets exceed $200,000 on December 31 or $300,000 at any time during the year; married joint filers abroad generally use $400,000 and $600,000 thresholds.
- Form 8621 (PFIC). Israeli investment vehicles – including some Kupot Gemel and Keren Hishtalmut arrangements – are frequently classified as Passive Foreign Investment Companies under US tax law. Each PFIC requires a separate Form 8621 and carries its own compliance rules.
The US-Israel Tax Treaty (signed November 20, 1975) (including the second protocol signed on January 26, 1993) reduces certain withholding rates and includes residency tie-breaker provisions, but the Savings Clause in Article 6 preserves broad US taxation rights over its own citizens. Most Americans in Israel rely on the Foreign Tax Credit (Form 1116) rather than treaty positions to offset Israeli income tax dollar-for-dollar against their US liability.
For the 2025 tax year (filed in 2026), the Foreign Earned Income Exclusion covers up to $130,000 of qualifying earned income; for the 2026 tax year, that limit rises to $132,900. However, the FEIE and Foreign Tax Credit cannot be applied to the same income – you elect one approach. You can review the US-Israel tax treaty documents directly on the IRS website.
Professional assistance for your move to Israel
Moving to Israel runs through two compliance systems at once.
Israeli immigration law governs your residency status, Sal Klita eligibility, and Israeli tax registration. US tax law runs parallel and does not pause – Form 1040, FBAR, FATCA, and PFIC reporting obligations continue from day one. Getting the interaction between the two right in year one protects the full value of the 10-year holiday across the decade it was designed to cover.
At TFX, we've been preparing US expat tax returns for Americans in Israel since 2008. We determine whether FEIE or the Foreign Tax Credit is the better strategy for your income mix, handle Form 8621 for Israeli investment accounts, and file FBAR alongside your return to eliminate the compliance gap that catches many new Olim off guard.
Your first consultation is free.
Schedule my free call | See our expat tax return services
FAQ: moving to Israel from the US
Yes. US citizens have 2 primary pathways. Jews and their immediate family qualify for Aliyah under the Law of Return (1950), which confers immediate Israeli citizenship and access to financial absorption benefits. Non-Jewish Americans can apply for a B/1 Work Visa with an employer, an A/2 Student Visa for university enrollment, or a B-5 Investor Visa (exclusive to US citizens) if investing in an Israeli business.
For Jews and their eligible family, Aliyah under the Law of Return is a streamlined right, not a discretionary process, and approval is generally predictable. For non-Jews, immigrating to Israel from the USA is considerably harder. There is no general points-based or skilled-worker immigration category. Entry requires meeting a specific qualifying condition: a job offer, university enrollment, a qualifying business investment, or marriage to an Israeli citizen.
Yes, through specific visa categories. The B/1 Work Visa requires Israeli employer sponsorship. The A/2 Student Visa covers accredited university enrollment. The B-5 Investor Visa – exclusive to US citizens – allows Americans who invest substantially in an Israeli business to reside there long-term. Family reunification is also available for spouses of Israeli citizens. So, what does that mean in practice for a non-Jewish American? Your options exist, but each one requires meeting a defined threshold, and none grants automatic permanent residency.
Yes, under the same visa categories available to any non-Jewish American: the B/1 Work Visa, A/2 Student Visa, B-5 Investor Visa, or family reunification. Christians with documented Jewish ancestry, or those married to a qualifying Jew, may also be eligible for Aliyah under the Law of Return. Religion itself is not the disqualifying factor – it is the absence of the qualifying Jewish heritage or specific visa criteria that narrows the options.
Israel is generally more expensive than the US national average, particularly for housing, utilities, and gasoline. Groceries and public transport are broadly comparable; some produce categories are cheaper in Israel. The overall consumer price index in Tel Aviv is close to New York City. Healthcare costs less out of pocket in Israel, however, and public education through grade 12 is free – two items that can meaningfully offset the higher daily cost of living.
A 1-bedroom apartment in central Tel Aviv typically rents for $1,800–$2,500 per month. In peripheral cities like Haifa or Beer Sheva, the same apartment runs $800–$1,300 per month. Ra'anana – the most popular city among English-speaking Olim – falls in the $1,400–$1,800 range for a 1-bedroom. National averages show $1,479/month for a city-center 1-bedroom and $1,050/month outside the center.
A single person can cover basic expenses – rent, food, healthcare, and transport – in a peripheral city on roughly $2,500–$3,000 per month. Tel Aviv requires $4,000–$5,000 or more for a similar lifestyle. Even with Sal Klita support during the first year, most financial advisors recommend arriving with a cash buffer of at least $20,000–$30,000. The wage gap between the tech sector and other industries means income assumptions should be stress-tested before departure.
Making Aliyah means immigrating to Israel as a Jewish person under the Law of Return. The word Aliyah means "ascent" in Hebrew and has been used to describe Jewish immigration to Israel since the late 19th century. Making Aliyah grants immediate Israeli citizenship and access to the Sal Klita absorption basket, the 10-year foreign income tax holiday, and other settlement benefits not available to standard visa holders. It is the primary legal and cultural framework for Jews who move to Israel from the US or anywhere else in the world.
