In order to plan appropriately for Aliyah, it's important to have an idea of the rough cost of living in Israel. In the past few years, costs have risen quite significantly, most importantly in the cost of purchasing or renting properties which are usually the single largest item on a family budget. In addition, price increases for petrol, electricity, water and food are also straining the bank balances although some of these costs are due to drop somewhat in the coming months.
According to the Central Bureau of Statistics, average monthly expenditure for households in the top decile in Israel in 2013 stood at NIS 19,593 with the second and third deciles at NIS 15,662 and NIS 13,479 respectively.
For Olim planning their aliyah budget based on savings and / or income in foreign currencies, exchange raters also raise issues. For many years the pound was around the 8 shekel mark and at one point almost went to 9 shekels before beginning a precipitous plummet at the start of 2008. Since then it's gone no higher than 6.3 shekels. The US dollar too was valued around the 4 - 4.5 shekel mark for many years until the beginning of 2008. Since then it's mainly hovered around the 3.5 mark. Both currencies are currently enjoying relative strength against the shekel but are nowhere near previous heights. It's hard to take currency fluctuations into consideration when planning but it's certainly sensible to assume that significant fluctuations may occur.
Rental and property purchase prices vary widely across the country and from neighbourhood to neighbourhood. Unfashionable locations can quickly find themselves becoming hotspots as people look for a good deal. The North and South of the country offer cheaper options than the overheated centre but employment options are more of a challenge. Peripheral neighbourhoods may offer cheap alternatives to more popular neighbourhoods closer to the city centre but may add significantly to morning commutes. Sometimes paying a premium for the right location is deemed worthwhile.
Olim are entitled to certain benefits upon arrival such as Arnona reduction, free medical insurance (if not working), free TV tax (scheduled to be cancelled) which will lower their initial costs. It makes sense to plan using figures for the medium and longer term, especially for those living on a fixed budget.
The table below shows a rough guide to the monthly costs which will vary from family to family. A range of costs has been presented. It is recommended to do your own research to get more accurate information on local differences and costs such as rental prices, arnona, school costs. Many of the costs presented are optional (Cable TV, vehicle ownership, entertainment etc)
| Single* | Family* | Retiree couple* | comments | |
|---|---|---|---|---|
| Rent | 1500 - 3000 | 4500 - 10000 | 3500 - 7000 | |
| Arnona (Municipal Tax) | 110 - 240 | 500 - 750 | 300 - 600 | Olim receive a discount of up to 90% on 100 square metres for 12 months of their first 24 months as Olim |
| Va'ad Bayit (building management feees) | 0 -150 | 0 - 300 | 0 - 300 | |
| Public Transport | 0 - 500 | 0 - 1000 | 0 - 250 | Cost of a monthly bus pass is approximately NIS 250. Senior citizens are entitled to a 50% discount |
| Car License fee | 120 - 150 | 120 - 150 | 120 - 150 | |
| Petrol | 600 | 900 | 600 | |
| Car Insurance | 300 - 500 | 300 - 500 | 300 - 500 | |
| Electricity | 100 - 200 | 400 - 1000 | 200 - 500 | |
| Water | 50 - 75 | 100 - 200 | 100 - 150 | |
| Gas | 50 | 50 - 100 | 50 - 75 | |
| Cellphone | 60 | 200 | 120 | It is generally considerably cheaper to bring a phone with - make sure it's unlocked. Most cell phone packages include unlimited calls, internet and international calls |
| Internet | 75 | 150 | 150 | packages for internet and cable TV (and home phone) exist which are cheaper than doing each with a separate supplier |
| Cable TV | 75 - 150 | 75 - 150 | 75 - 150 | |
| Contents insurance | 150 - 300 | 150 - 300 | 150 - 300 | |
| Food | 1000 - 1500 | 2500 - 3000 | 1500 - 2500 | |
| School and after school | 0 | 1500 | 0 | Assumes children are in compulsory schooling |
| Cleaner (twice monthly) | 400 | 400 | 400 | |
| Health | 0 | 200 | 300 | Additional insurance packages + medicine costs |
| Entertainment | 1000 | 750 | 1500 |
*Single - sharing accomodation in a major city with one other person - 3 room (2 bedroom) apartment
*Family - 2 adults, 2 childen - 4 room (3 bedroom) apartment
*Retiree couple - 2 adults - 3 room (2 bedroom) apartment
All figures are monthly and are in New Israeli Shekels