Retiring in Israel: a complete guide
Explore the prospect of retirement in Israel, from taxes and cost of living to quality of life and popular amenities.
Summary
Traditionally, retiring in Israel is referred to as “making Aliyah” for those who observe the Jewish faith.
Israel has the sixth-best healthcare system in the world, which is an impressive feat.
The average cost of living in Israel for one person is $3,150 per month.
Find a financial advisor who can help you create a plan for retirement in Israel that suits your personal needs.
What are the pros and cons of retiring in Israel?
All countries have pros and cons as retirement destinations, and Israel is no different.
The strong cultural influences, food scene, and weather can make retiring in Israel a great experience, but the high cost of living can be challenging to manage on a smaller budget, as can the constant threat of war.
Pros of retiring in Israel:
Delicious food and exciting cultural activities: Israel is renowned for its incredible Mediterranean-Middle Eastern cuisine and an array of cultural and travel opportunities.
Quality, affordable healthcare: Israel's healthcare system is among the world’s top ten.
Year-round fair weather: The weather in Israel is warm and balmy throughout the year, making it a good destination for seniors seeking a warmer climate.
Cons of retiring in Israel:
Political instability: Political conflicts of interest and cultural differences can make Israel a challenging environment to retire in, as the threat of war is ever-present.
High cost of living: Israel is ranked as the eighth most expensive country to live in.
Expensive accommodation: Property is one of Israel’s biggest expenses, making accommodation costly for those looking to retire here.
What are the best places to retire in Israel?
Israel offers many naturally beautiful and dynamic city environments in which to retire.
Some of the best places to retire in Israel for US seniors include:
Jerusalem: This modern city has a good balance of excitement and peacefulness. However, the property rentals can be very high.
Haifa: Haifa overlooks the Mediterranean Sea and is home to the lush Hanging Gardens of Haifa, making it a peaceful and naturally beautiful place to retire in Israel.
Tel Aviv: Known as the “city that never sleeps," this bustling city in Israel offers vibrant markets, incredible cuisine, world-class facilities, and property options.
What age can you retire in Israel?
The average retirement age in Israel is 60 to 65, depending on when you were born.
You must meet this age requirement to access tax benefits.
What is the average cost of retirement in Israel?
A single person retiring in Israel can expect to pay around $3,150 per month for the total living expenses.
This budget accommodates a high quality of life.
Do you pay taxes after retirement in Israel?
Once you reach retirement age in Israel, you may be exempt from certain taxes, such as savings and deposit plans.
As a US expat, you will be subject to Israeli and US taxes. Israel’s pension tax is between 15% and 28%, depending on your income bracket.
What programs are there for emigrating to Israel?
If you have Jewish ancestry, the official emigration program for Israel is called “making Aliyah.”
It requires you to provide comprehensive background information and documents in order to apply for a visa.
What visas do I need to retire in Israel?
If you are a US citizen with no Jewish ancestry, you will need an A5 visa to apply for retirement residency.
If you meet the relevant criteria, you will be allowed to emigrate to Israel.
What are my healthcare options in Israel?
As long as you have a visa in Israel, regardless of which kind, you can access Israel’s government healthcare system, which is considered extremely high-quality and efficient by international standards.
Is it safe to retire in Israel?
While some parts of Israel have fairly high crime rates, such as those close to the West Bank, the major city areas are considered safe and boast robust security and police infrastructures.
However, the war with Gaza and other surrounding countries is an ever-pressing concern.
What is the housing market in Israel?
Despite the pandemic, housing prices in Israel have been on the rise since 2020.
There is a high demand for property in Israel, and the limited supply pushes up the prices.
The average cost per square foot is currently $1,352, while average property prices are as follows:
| Area of Israel | Average house price |
|---|---|
| Jerusalem | $673,000 |
| Tel Aviv | $1.13 million |
| Haifa | $440,000 |
What happens to my retirement benefits if I retire in Israel?
Retirement benefits in Israel vary depending on whether you are making Aliyah or simply emigrating as a US senior citizen.
Retirees of Jewish descent may apply for Israeli retirement benefits, while expats’ native benefits will be subject to taxation when retiring in Israel.
Is Israel a good place to retire?
If you have Jewish ancestry and are interested in the local food and religious customs, you may choose to retire to Israel. However, the ongoing political instability can be a deterrent for many retirees.
Get expert financial advice
Retiring in Israel can be expensive, and there’s a risk of politically or religiously motivated attacks. Still, its robust healthcare system, food scene, and travel opportunities make it a somewhat attractive retirement destination for US seniors.
Let Unbiased match you with an expert financial advisor who can help you create a customized retirement plan for your journey to settle abroad.
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