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Aliyah benefits

July 5, 2024 172 Time to read: 13 min.

The Aliyah program provides people with Jewish roots around the world with significant benefits when repatriating to Israel. Many people have a distant idea of these advantages, so they consider a trip to Israel a pipe dream. In fact, a lot is being done in the country to gather on the holy land all the people who are anyhow related to the Jewish nationality. If you are thinking about going to the land of your ancestors, keep these benefits of moving to Israel in mind:

  • financial benefits;
  • free language courses;
  • assistance in obtaining a job;
  • tax benefits;
  • scholarships

Olim who do not have their own housing receive subsidies for renting an apartment. In addition to these benefits, new citizens are entitled to many other ones, which we will talk about in the article.

What is Aliya

Undoubtedly, Israel is a secular state. But this is the country of the Jewish people. Most Israelites believe in their being chosen by God and consider the Promised Land holy. It is impossible to imagine it without Jerusalem, to which the Jews have a particularly reverent attitude.

In the state, the secular and the spiritual were intertwined together. Although the Torah laws play the role of the constitution in the country, religious holidays have a national status, and the secular rights of citizens are reliably protected. The Jewish nation has a long-suffering history. As a result of countless persecutions and discrimination, millions of Jews were scattered throughout the world. After the Second World War, the world community played an important role in the creation of the State of Israel on the historical Judean land.

With the acquisition of statehood, the government began a policy of reuniting Jews who had once been deprived of their homeland. The government has launched a program for the repatriation of foreign citizens related to Jewish nationality. It was named Aliya.

The word has a special meaning for the Jews. In the literal meaning, translated from Hebrew, it means “ascent”. The term has become so common for a reason, as it is associated with Jerusalem, which is sacred to the Jews. The city is actually located on a mountainous terrain, and you need to climb it.

Over time, the direct meaning of the term began to acquire a spiritual meaning. Today, the word Aliyah is used in the meaning of “ascent”, meaning ascent to spiritual heights. If in the secular sense, Jerusalem should be perceived as the capital of the state, then in the spiritual sense, this city for the Jews is the place where the presence of God is always felt.

Sal Klita

Israel creates unprecedented financial opportunities for an Oleh Hadash to adapt. In other countries, they can only dream of such support in their historical homeland. The Sal Klita allows Olim to spend the first year of their stay in the Promised Land without financial problems. It is important to remember that the absorption basket is due to Olim of all ages, wherever they come from. Only the amounts of benefits differ depending on three factors:

  1. Age of children, adults and pensioners.
  2. Marital status: complete family or single.
  3. Number of children or their absence.

Money can be received during 6 months, but only if you do not leave the country for a long time during this period. Your long absence from Israel will be a reason to stop paying Sal Klit. The payment of the allowance will resume as soon as you return to the country before the end of the first year of repatriation. A clear schedule for the payment of financial assistance has been determined. Your first cash will delight you at Ben Gurion Airport. This will be part of the first payment. The remaining financial resources from the first payment and everything that is due in the future within 6 months can only be received by transfers after opening a bank account.

Monthly payments are credited to the card in the same amounts. Without a current account, an Oleh Hadash has nothing to do in Israel. So, you need to go to the bank immediately so that there are no problems with receiving the financial resources.

Who is entitled to the absorption basket

When assigning benefits, the Ministry of Aliyah is not at all interested in the monthly or total income of the Olim or his family. All future Israeli citizens staying in the country under the repatriation program are in the same conditions and will receive what they are entitled to by law. A list of persons who are entitled to an absorption basket has been determined. These include:

  • new immigrants;
  • foreign-born Israelis;
  • minor children who were taken to other countries by their parents but returned;
  • persons who became immigrants, but lived in Israel for no more than 24 months out of a total of 36 months before receiving this status.

In addition to these payments, repatriates receive subsidies for renting housing during the year.

Employment Opportunities for Returnees

By welcoming fellow immigrants with open arms at the Airport, the Israeli authorities do not abandon future compatriots. The Ministry of Aliyah and Absorption is doing everything possible to support them in the difficult years of adaptation in the country. Various categories of citizens are provided with opportunities to get a job. If this can’t be done at first, people are provided with financial support. Here are the measures to support new compatriots provided by the Government:

  • Financial support in the amount of the subsistence minimum for new citizens who received Sal Klita in full, but did not find a job. A citizen must receive this minimum before the fact of employment or until the end of the first year after repatriation. At the end of the year, if the citizen is still looking for work, he or she should contact the Employment Office;
  • Those wishing to change their profession and obtain a work permit can contact an absorption consultant for clarification. If an Oleh Hadash is sent to a course, he will receive an allowance (dmei kiyum) until the end of his studies;
  • The Ministry of Aliyah and Immigrant Absorption understands that for full-fledged work, you need to know the local language. In addition to free entry-level courses (aleph), the Department of Labor and Employment provides vocational training (taasuka). The cost of these courses should be clarified with your consultant or on the website of the Ministry of Aliyah and Immigrant Absorption. In the business initiative support department, you can get explanations about starting a business. Here you can allocate subsidies for the launch of the company;
  • In the Jewish state, they meet the needs of Olim who find themselves in difficult situations. New citizens who cannot work for health reasons, family circumstances, age are entitled to disability benefits. They can be received from the moment of termination of aliyah payments until the end of the year. In the future, you need to contact the local National Insurance Service with these questions.

In Israel, new citizens with higher education and academic degrees are treated with respect. They are supported in finding a job, in retraining. The Center for Absorption subsidizes the salaries of scientists.

Education Benefits for Immigrants

There are educational institutions in Israel that are recognized by the Ministry of Aliyah and Integration. Subsidies for studies are provided to repatriates who enter only these educational institutions. After arriving in Israel, an application for study can be submitted within 3 years. Before entering the university, applicants are explained all the nuances of future study, including the conditions of financial support. For the children of Olim who begin to study in schools in Israel, discounts are provided for the purchase of textbooks and supplies. They also enjoy benefits when organizing paid events. Elective classes are held in schools to learn Hebrew.

Tax rebates

Israel’s tax system is very complex. It would be difficult for new Olim to understand it. That’s why the state worked out the measures aimed at reducing the tax burden and simplifying the procedure for their payment. Israelis who have received citizenship through aliyah enjoy tax benefits for as long as 10 years.

Here are the tax breaks for an Oleh Hadash provided by the local authorities:

  1. Tax exemption on income earned outside the Israeli state. Repatriates also do not have to deal with tedious declarations and reports. Even funds received from fees, investments, and rent are not taxed.
  2. The tax on benefits or pensions in Israel should not exceed the amount paid by the Olim while in another country.
  3. A new citizen receives tax benefits on income from foreign currency savings, if they were made before arriving in the country. Moreover, this norm has been in effect for 20 years. The benefit is valid even if the account is in an Israeli bank.
  4. The tax burden on new citizens is significantly reduced by the so-called preferential units (nekudot zikui). After repatriation for three years, an Israeli receives preferential units from 1 to 3. Their cost increases every year. This year, one unit reduces the tax by 242 shekels. A repatriate receives a discount of 2904 shekels per year.

Newcomers to the country have the right to take advantage of the adaptation period. It lasts one year. During this time, you are not considered an Israeli taxpayer. After this period, you can stay in Israel and enjoy tax breaks or leave the country if the conditions do not suit you.

Mortgage Discount

All immigrants, without exception, are entitled to a preferential mortgage in Israel. Such government assistance measures last within 10 years after the date of aliyah. Mortgage terms range from 20 to 28 years. The loan size reaches 200,000 shekels and is issued at 4-4.5%. If this amount is not enough, you will have to add it from your personal financial resources. There are two conditions without which you will not be able to use a subsidized loan:

  1. You must first obtain a teudat zakout from a mortgage bank.
  2. Do not own real estate in Israel.

In some areas of the country, an interest-free loan (maanak) can be issued. Its amount is limited to 50,000 shekels.

Bituah Leumi

Pension in Israel must be accumulated by yourself in the course of work. The small amount of money from 1,530 to 2,300 shekels a month given out by Bituah Leumi (National Insurance Institute) is an allowance, though it is mistakenly called a pension. Israel is an expensive country, and this money will not be enough for much. To earn money for old age, an Israeli needs to constantly save and control his savings. What kind of pension can an Oleh Hadash count on? Much depends on the age at which he came to the country.

If you manage to work in Israel for at least 5 years, you will be able to significantly increase your pension. In addition to the allowance due from Bituah Leumi, a funded part for 60 months of work will be added. In the event that a new citizen came to the Promised Land at retirement age, he can count on the following payments:

  1. Old-age allowance from Bituah Leumi.
  2. If a person does not work, he is entitled to the subsistence minimum. Together with the allowance, this will amount to 3700 shekels.
  3. If the repatriate rents housing, he will receive from 800 to 1200 shekels.

Thus, the total is from 4500 to 4900 shekels. According to many Olim, this is good money to live carefree at an old age in the homeland of their ancestors.

Free flight to Israel

Flying from one country to another, especially with the family, is not cheap. The State of Israel provides new fellow citizens with free flights to the country. The solution to this problem is in the responsibility of the international Jewish organization Sokhnut, which was created in 1929. It is engaged in organizing all-round assistance to people with Jewish roots who want to go to their historical homeland.

To get plane tickets to Israel, Olim need to do only three things:

  1. Go through a check at the consulate.
  2. Have an immigrant visa.
  3. Submit documents to Sokhnut.

The ticketing procedure is simple, except for long queues. You need to keep in mind that you will not be able to take a free ticket for the time that suits you. If you intend to fly without money, you will have to agree to the departure date that will be offered. To obtain a ticket, you must also have ALEF5 visas for minor children in the 4th generation.

Ulpan Programs for Hebrew Studies

The Ulpan program not only teaches Hebrew to immigrants, but also introduces them to the culture, customs, and traditions of the Jewish people. The course contributes to the speedy adaptation in the homeland of the ancestors.

People who do not know Hebrew at all are trained up to the second level. If the repatriate has some language skills, he is offered to choose one training program from several ones. Courses are designed for 5 months if to conduct 25 lessons per week. Free courses are available to new immigrants for 10 years after obtaining status. Classes are held both during the day and in the evening. For those who have higher education, Hebrew is taught taking into account specialization.

Can students receive discounts on education fees in higher or secondary school?

No, they can’t. To receive tuition fee discounts, educational institutions must be recognized by the educational body of Minhal Hastudentim (The government office that helps you receive your academic rights as an oleh chadash)

How long special mortgage rate is available for new repatriate?

A special mortgage rate is available to a repatriate for 15 years.

How much does one preferential unit cost and how many units can I get?

The cost of preferential units periodically increases. This year it costs 242 shekels. One person can receive from 1 to 3 preferential units per month.

Where should I apply for free plane tickets?

The International Jewish Organization Sokhnut is engaged in the provision of free flights. You must provide certain documents there.

What is the ALIF5 Visa?

This document gives the right to temporary residence in Israel. It is issued to foreigners who are trying to obtain a permanent residence permit or citizenship. The visa is issued for a year with the right to extend. The document gives the holder the opportunity to work, receive benefits in Bituah Leumi.

If I live in Israel and work remotely in another country, can I benefit from tax?

No, you can’t. Income received by a repatriate from abroad through telephones and e-mails is considered local in Israel and taxed.

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