Making Aliyah: The Money Checklist Before You Move

Aliyah is an emotional decision and a financial one, and the financial side rewards people who prepare early. New olim get materially better mortgage terms and a large purchase-tax break that foreign buyers never see — but only if the paperwork and timing are right. This is the checklist we walk every client through before they move. Work down it in order.

First, understand how different the Israeli market is

If your only experience of buying is the UK, set your expectations before you start. The Israeli property market is older-fashioned and runs on a different mentality, and most of the frustration Anglos feel comes from expecting it to behave like home. There is no single national listing system like Rightmove, so information is scattered and word of mouth still matters. There is no conveyancing chain and no estate agent driving the deal to completion — here the transaction is built around a law-trained specialist, and much of the process is still done in person, on paper, and in Hebrew.

It is slower, more manual and more relationship-driven than the UK. New-build ('on paper', from a kablan) is bought very differently from a resale home, deposits and timelines follow their own rules, and a great deal turns on trust, patience and having someone who knows how the room works. None of this is a problem once you understand it — but going in with a UK mindset is how people lose time, money and their nerve. Reading the market correctly is the first job, and it is why having someone on your side who lives in both worlds matters.

Start with what you can actually borrow

As a new immigrant you are treated far more generously by Israeli lenders than an overseas buyer who is not making Aliyah. Foreign, non-resident buyers can typically borrow only around half of a property's value. As an Oleh buying a first home, you can generally reach up to around 75% — which changes the size of deposit you need to have ready, and often the price bracket you can consider.

The catch is that Israeli lenders read foreign income differently from a UK or US bank. Salary, dividends and rental all count, but they have to be presented the way an Israeli credit committee expects to see it. Getting that file right is most of the work, and it is exactly what we do.

Use the purchase-tax break — it is bigger than most people realise

Israel charges a one-off purchase tax (mas rechisha) when you buy. New olim get a special reduced track on a single home. Under the current rules an Oleh pays 0% on roughly the first ₪1.98 million of the price and just 0.5% on the balance, for a home below about ₪20 million, claimed within a seven-year window around your Aliyah (with a one-year look-back that can cover a purchase made just before you land).

On a typical family home that is a saving of tens of thousands of shekels against what a foreign buyer would pay. The thresholds are index-linked and the relief has to be claimed correctly, so treat the numbers here as the shape of the benefit rather than a quote — we confirm the current figures and eligibility for your specific purchase.

Sort your tax residency before you land, not after

New olim receive significant tax benefits, and in 2026 there is an additional temporary reform that can mean 0% Israeli tax on a meaningful slice of income for people who establish residency inside a defined window, phasing up over later years. It does not cover everything — passive income such as rent, interest and dividends is treated separately — and eligibility depends on dates and personal circumstances.

This is the part of the checklist where a short conversation with a tax adviser before you move can be worth a great deal. We are law-trained and we coordinate the picture, but your tax position should be confirmed by a professional against your own numbers and timing.

Open your Israeli bank account on day one

If you are used to a UK high-street bank — Barclays or HSBC, an account opened on your phone in minutes, a polished app, instant transfers — reset your expectations now. Israeli banking is a different world: slower, more manual, more in-person and on paper, and the anti-money-laundering (AML) and know-your-customer (KYC) checks sit on a completely different scale. The attitude across the counter is less service-led than you are used to. None of this is a barrier once you know how the room works — which is precisely where we come in.

Your absorption support (see below) is paid into an Israeli bank account, and your mortgage and purchase run through one too. Opening an account is one of the first things to do on arrival — delays here delay everything downstream, including your grant payments. We make the introductions so this happens cleanly rather than becoming a three-week errand in your first fortnight.

Move your money deliberately, not on completion day

In the UK a large transfer is a few taps and it is done. Moving a property-sized sum into Israel is not that: it runs through source-of-funds checks, compliance questions and a banking system that moves at its own pace. Start early. If your deposit and savings are in pounds or dollars, the exchange rate you get matters as much as the price you negotiate — a few percent on a property-sized transfer is real money. Leaving the conversion to the day funds are due is the most common and most expensive mistake we see. Plan the transfer as its own decision, through a proper channel, with time to move when the rate is sensible. Our live rate tool on the Mortgages & Banking page is there so you can see this in real terms.

Budget for the whole buy, not just the deposit

Beyond the deposit and purchase tax, budget for legal work, an agent where one is involved, a mortgage arrangement, valuation and the practical costs of setting up a home. None of these are large individually, but together they are the difference between a comfortable move and a stretched one. We give clients a full, itemised picture up front so nothing lands as a surprise.

Claim your absorption support

The government provides a settlement grant (sal klita) to help through your first months. As a rough guide for 2026 a single Oleh receives in the region of ₪21,700 and a couple around ₪41,400, with supplements for children — paid partly on arrival and then in monthly instalments into your Israeli account. Organisations such as Nefesh B'Nefesh help arrange your Oleh status and connect you to it. Register with the Ministry of Aliyah and Integration as soon as you arrive so payments start on time.

How The Bayit helps

We handle the money side of Aliyah as one connected job, not a set of separate errands: reading your foreign income the way Israeli lenders need to see it, arranging the mortgage and banking, making sure the purchase-tax relief is claimed, and keeping the whole timeline moving. One point of contact, from first question to keys. Done properly.

Ready to start? Book a free consultation. WhatsApp +44 7469 667198 or email ofirzaoui@thebayit-group.com.

Frequently asked questions

How much more can an Oleh borrow than a foreign buyer?

A non-resident foreign buyer is usually limited to around 50% of the property value. A new Oleh buying a first home can generally reach up to around 75%, subject to the lender and how your income is presented.

Do new olim really pay less purchase tax?

Yes. Olim get a reduced purchase-tax track on a single home — currently 0% on roughly the first ₪1.98 million and 0.5% on the balance — claimable within a seven-year window around Aliyah. Thresholds are index-linked and must be claimed correctly.

When should I open my Israeli bank account?

As early as possible after you arrive. Your absorption grant and your mortgage both depend on it, so it is one of the first things to arrange on landing.

What is the single most expensive mistake people make?

Leaving the currency conversion of their deposit to the last minute. On a property-sized transfer, the rate you get can move the total by more than most people expect — plan it in advance.

This guide is general information for people considering Aliyah and is not legal, tax or financial advice. Figures are current at the time of writing; several are index-linked or set by temporary legislation and change over time. We confirm the numbers and eligibility for your own circumstances in consultation.