Comprehensive Guide to Government Grants and Financial Benefits for New Olim in Israel
Everything You Need to Know About Financial Support During Your Aliyah Journey
Introduction
Making Aliyah represents one of the most significant decisions in a Jewish person's life. The State of Israel, recognizing the immense value that new immigrants bring to the country, has established a comprehensive and multi-level support system designed to facilitate the complex absorption process. This system includes substantial financial grants, tax benefits, housing assistance, and educational support that can significantly ease the transition to life in Israel.
In 2025, the Israeli government continues to invest heavily in attracting and supporting new Olim, with enhanced benefits and expanded programs. This article provides a detailed overview of all the major grants and financial benefits available to new immigrants, helping you understand what support you can expect and how to access it.
The Absorption Basket (Sal Klita)
The Sal Klita, or Absorption Basket, is the cornerstone of Israel's financial support system for new immigrants. This is not a one-time payment but rather a well-structured, phased program of cash transfers designed to help you establish yourself during your first months in Israel. The program is administered by the Ministry of Aliyah and Integration (Misrad HaKlita).
How the Sal Klita Works
The Absorption Basket is distributed in several installments over your first six months in Israel. The payment structure has been recently updated, with the government doubling the initial airport payment in 2024 to help new Olim cover their immediate expenses upon arrival.
Initial Payment Upon Arrival
Immediately upon arrival at Ben Gurion Airport, after passing through passport control and obtaining your Teudat Ole (immigrant certificate), you receive the first part of your basket. This is typically provided as a prepaid debit card known as a "Kartis Aliyah" or "Kart-Isa," though in some cases cash may be provided. For a single Oleh (Ole Yachid), this express payment is approximately ₪3,000-3,500. For families, the payment is proportionally higher. This immediate payment allows you to cover urgent expenses such as transportation to your residence, initial purchases of groceries, hygiene products, and SIM cards.
Monthly Payments
Following the initial payment, you will receive monthly installments over the following six months. In 2025, a single new Oleh typically receives about ₪1,300-1,500 per month, with higher amounts for families. These payments are deposited directly into your Israeli bank account. To continue receiving payments, you must register a local bank account and attend Ulpan (Hebrew language courses). The exact amounts vary based on your family status, including marital status and number of children.
Eligibility and Requirements
To receive the full Sal Klita benefits, you must meet the following requirements:
Be recognized as a new Oleh under the Law of Return
Open an Israeli bank account (this should be done as soon as possible after arrival)
Attend Ulpan classes actively to maintain eligibility for continued payments
Register with your local Misrad HaKlita office
Provide all required documentation including your Teudat Zehut (Israeli ID)
Housing Grants and Rental Assistance
Housing is typically the largest expense for new Olim, and Israel provides substantial assistance in this area. The government offers multiple programs to help with both renting and purchasing homes, recognizing that stable housing is essential for successful integration.
Rental Assistance (Siyua B'Schirut)
New Olim are eligible for monthly rental assistance starting from the seventh or eighth month after Aliyah (after Sal Klita payments end) and continuing for up to four to five years, depending on your status and location. The Ministry of Construction and Housing (Misrad HaBinuy VeHashikun) administers this program in coordination with Misrad HaKlita.
Payment Amounts
In 2025, rental assistance ranges from approximately ₪1,000 to ₪3,000 per month, depending on several factors including your family size, the geographic location of your residence, and your level of need. Olim living in national priority areas, the Negev, or the Galilee regions may qualify for additional subsidies. For those who arrived from March 1, 2024 onwards, there is enhanced assistance for those living in settlements defined by the government as "national priority areas."
Geographic Zones
Israel divides the country into different support zones (typically labeled A, B, and C) that determine the level of housing assistance. Areas in the periphery, including development towns and communities in the Negev and Galilee, receive higher support levels. Living in more affordable communities like Afula, Carmiel, or Be'er Sheva can help stretch your rental subsidies further while still enjoying excellent quality of life.
Home Purchase Benefits
For Olim looking to purchase property, Israel offers significant tax benefits and special mortgage programs that make homeownership more accessible.
Purchase Tax Exemption (Mas Rechisha)
One of the most valuable benefits for new Olim is the substantial reduction in purchase tax when buying your first home. For Olim who made Aliyah after August 15, 2024, no tax is charged on the first approximately ₪1,978,745 of the property's value. A reduced rate of 0.5% applies to the portion between approximately ₪1,978,745 and ₪6,000,000. Standard rates apply only above ₪6,000,000. This benefit is available for up to seven years after making Aliyah, or for purchases made up to one year before Aliyah. To put this in perspective: for a ₪3 million apartment, a regular Israeli would pay approximately ₪240,000 in purchase tax, while a new Oleh pays only about ₪5,000—a savings of ₪235,000.
Periphery Grants
New Olim who purchase homes in peripheral areas of Israel can receive additional grants ranging from ₪40,000 to ₪60,000. This is not a loan but free money, with the only requirement being that you do not sell the property within five years of purchase. These grants are designed to encourage settlement in development towns and communities outside the central coastal region.
Tax Benefits and Exemptions
Israel's tax benefits for new Olim are among the most generous in the world, designed to help immigrants preserve their wealth and reduce their tax burden during the critical absorption period. These benefits can result in significant savings over several years.
Foreign Income Exemption
New Olim receive automatic "Toshav Hozer" (returning resident) status for tax purposes during their first 10 years of residency. This provides a complete exemption on income generated outside Israel, including foreign investment income, pensions from abroad, rental income from overseas property, and earnings from employment with non-Israeli employers. This benefit is particularly valuable for Olim who maintain business interests or investments in their country of origin.
Israeli Income Tax Credits
For income earned within Israel, new Olim who arrived after January 1, 2022 receive a tiered income tax credit system over 4.5 years. The credit works on a point system, where one tax point equals approximately ₪242 per month (as of 2024). The structure is as follows:
First 12 months: 1 tax point per month
Months 13-30: 3 tax points per month
Months 31-42: 2 tax points per month
Months 43-54: 1 tax point per month
Municipal Tax Discount (Arnona)
All cities and towns in Israel charge Arnona (municipal property tax). New Olim are customarily granted a significant discount of 50% to 90% on Arnona payments for apartments up to 100 square meters. This discount is available for one 12-month period during the first 24 months after Aliyah. The exact discount percentage varies by municipality, so check with your local city hall to understand your specific entitlement.
Education Grants and Benefits
Education is heavily supported for new Olim, with benefits covering everything from Hebrew language learning to university degrees. The Israeli government recognizes that education is key to successful integration and economic independence.
Free Ulpan
Every new Oleh is entitled to a free, full-time Hebrew Ulpan course, typically consisting of approximately 500 hours of intensive language instruction. Standard courses run for about 5 months, with classes 5 days a week for 5 hours daily. Multiple locations are available throughout Israel, with the address on your Teudat Zehut determining your assigned Ulpan location. Additional Ulpan assistance is available through Misrad HaKlita for those who need it. Olim can access this benefit for up to 18 months after Aliyah, and the benefit remains available for up to 10 years post-Aliyah.
Higher Education Grants
The Student Authority (Minhal HaStudentim) within the Ministry of Aliyah and Integration provides substantial financial assistance for academic studies. Eligible Olim can receive up to 100% coverage of standard state tuition fees, making higher education essentially free.
Eligibility Requirements
Studies must begin within 36 months of making Aliyah (excluding army or Sherut Leumi service time)
For Mechina (preparatory courses): up to age 23
For BA/BSc programs: up to age 27
For MA/MSc programs: up to age 30
Coverage Details
The Student Authority covers tuition for the standard number of years per degree: 3-4 years for bachelor's degrees depending on the field (4 years for engineering, nursing, and education), and up to 2-3 years for master's degrees (including supplementary courses if required). As of 2025, standard university tuition is approximately ₪11,653-12,017 per year for undergraduate degrees and ₪15,748 for graduate degrees. Students receiving these benefits must participate in the "Shahak" community volunteer service program.
Healthcare Benefits
Israel has a universal healthcare system, and new Olim receive immediate access to comprehensive coverage. Bituach Leumi (the National Insurance Institute) provides up to six months of free basic health insurance to new Olim without income. After this period, or once you begin working, you transition to standard contributions through one of Israel's four health funds (Kupot Holim): Clalit, Maccabi, Meuhedet, or Leumit. You can choose which health fund to join, and coverage is heavily subsidized, making Israeli healthcare remarkably affordable compared to many other developed countries.
Additional Financial Benefits
Duty-Free Imports
New Olim can import personal belongings, appliances, and household goods from any country tax-free for up to three years after Aliyah. You may bring up to three shipments of imported goods during this period. Many Olim take advantage of this by shipping items like kitchen equipment, electronics, and furniture. Additionally, you receive a reduced tax rate on the purchase of a new car in Israel or the import of a car from abroad.
Cash Import Allowance
Olim can bring up to ₪50,000 in cash or cash equivalent value into Israel without the need to report it to authorities. This provides flexibility in transferring your savings to Israel.
Transportation Discounts
New Olim receive free transportation from the airport to their first destination in Israel upon arrival. Additionally, once you receive your Teudat Oleh, you're eligible for a 50% discount on trains and buses during your first year in Israel. This discount significantly reduces the cost of getting around as you explore your new country and establish your daily routine.
Income Support (Dmei Kiyum)
During the second six months following Aliyah, once Sal Klita payments have ended, you may be eligible for additional financial support through Misrad HaKlita known as Dmei Kiyum or Havtachat Hachnasa (income support). This is available if you are unemployed or earning minimal income. Payment amounts range from approximately ₪1,524 to ₪4,400 monthly, depending on demographic parameters. To receive full benefits, apply during the 7th month following your Aliyah, as payments are not made retroactively.
Conclusion and Next Steps
The financial support system for new Olim in Israel is comprehensive and designed to help you succeed in your new life. From the initial Sal Klita payments upon arrival to long-term benefits like tax exemptions and educational grants, the State of Israel invests significantly in its immigrants.
To maximize your benefits, register with Misrad HaKlita as soon as possible after arrival, open an Israeli bank account quickly to avoid delays in payments, attend Ulpan to maintain eligibility for housing assistance, keep all documentation organized and accessible, and consider settling in priority areas for enhanced benefits. Organizations like Nefesh B'Nefesh (for North American and UK Olim) and the Jewish Agency can provide personalized guidance to help you navigate the system and ensure you receive all the benefits to which you're entitled.
Note: All figures mentioned in this article are current as of 2025 and are subject to change. Always verify current rates and requirements with official government sources such as Misrad HaKlita, the Ministry of Finance, and the Ministry of Construction and Housing.