Government grants and benefits for new Olim in 2025

New Olim are benefiting Israel in 2025, and to support this valuable contribution, the state provides a comprehensive system of subsidies and benefits. This support includes financial assistance, tax breaks, and social integration programs. The program is designed to facilitate the rapid integration of new citizens into Israeli society and the economy. In this article, we will look at the main types of state support for the new Olim in 2025.

Absorption basket (Sal Klita) – financial basis for the first months

The “Absorption Basket” (Sal Klita) is the main and most significant form of direct financial assistance. It is provided by the State of Israel to every new repatriate to facilitate their initial settlement. This is not a one-time payment, but a well-thought-out, phased program of cash transfers. Here is how the Sal Klita payment will be made in 2025. Immediately upon arrival at Ben Gurion Airport, after passing through passport control and obtaining a teudat ole (repatriate certificate), the new repatriate receives the first part of the basket.

For a family, the payment is proportionally higher. The exact amounts are approved annually and published on the Ministry of the Interior website. This payment allows new Olim to immediately cover their most urgent expenses: transportation to their place of residence, initial purchases of groceries, hygiene products, SIM cards, etc.

Regular payments to a bank account

After opening an Israeli bank account (this is a mandatory requirement for receiving further payments!) and registering its details at the Ministry of Internal Affairs office or via the website, the repatriate begins to receive monthly payments. These payments are made monthly during the first 6 months of stay in Israel. The monthly amount depends on status:

• single;
• married couple;
• single parent;
• number of children.

For example, for ole-yahid, this could be around 2,700-3,000 shekels per month. Check the official resources for the current amounts. The money is automatically transferred to the specified Israeli bank account, usually at the beginning of the month. Olim can receive payments from the second part of the absorption basket (7-12 months). To do so, Olim must regularly attend ulpan (state Hebrew language courses). The Ministry of Aliyah and Integration monitors attendance at ulpan classes. Usually, attendance of at least 75-80% of classes is required. Monthly payments during this period are usually lower than in the first 6 months.

For example, for ole yachid, this may be around 1,300-1,500 shekels per month. Current data is available on the Ministry of the Interior website. Key points for 2025: If the conditions for attending ulpan are met, the money is also automatically transferred to a bank account at the beginning of the month.

Tax Benefits and Exemptions

The system of tax benefits aims to significantly reduce the tax burden during the initial absorption period. The primary mechanism is the benefit period (tnat matar), which lasts for 10 years from the date of repatriation (aliyah). The foundation of this benefit period is the “toshav hozer” (returning resident) status. This status is automatically granted to new Olim for their first 10 years of residency in Israel. It entitles them to several key tax advantages.

1. Income Tax Exemption (mas ahnasa). Applies to income generated outside Israel. This includes foreign investment income, pensions, rental income from overseas property, and earnings from employment with non-Israeli employers. Such income is fully exempt from Israeli income tax throughout the 10-year benefit period. Note that income from Israeli sources (e.g., salaries from local employers or business activities within Israel) remains subject to standard income tax.
2. Capital Gains Tax Exemption (mas shevach). New Olim may qualify for exemption from Israeli capital gains tax when selling specific assets. This applies to profits from the sale of assets acquired before aliyah. The exemption primarily covers securities and real estate and remains valid throughout the 10-year benefit period. Strict conditions apply: not all asset types qualify, and the exemption does not extend to profits from assets purchased after becoming an Israeli resident.
3. Exemption from Apartment Purchase Tax (mas rehisha). This exemption applies when purchasing a first apartment in Israel for use as a primary residence. Typically a substantial percentage of the property value, this tax may be fully or partially waived for new Olim within the initial years after aliyah. The extent of the benefit depends on established criteria, such as the duration of ownership of previous property abroad.
4. Customs Benefits.Include duty exemptions for importing personal belongings and vehicles within designated quotas and timeframes after aliyah.
5. Temporary Exemption from National Insurance (Bituach Leumi) and Health Insurance (mas bituach) Contributions. Applies to income from foreign sources during a defined period (typically the first 6-12 months). Contributions remain mandatory from day one for income derived from Israeli sources.

Support in the area of housing and mortgages

In 2025, the State of Israel offers a range of programs and benefits designed to facilitate the temporary rental or purchase of one’s own apartment. This support includes direct financial payments and significant advantages when obtaining a mortgage loan. Housing allowance (Maamak Diyur / Parnasat Dira) is a special monthly payment provided by the Ministry of Aliyah and Integration (Misrad HaKlita). It is intended to partially compensate for the cost of renting an apartment. The amount of the allowance depends on several factors:

• family composition (single person, couple, children);
• city of residence (there are zones with different levels of support – “A”, “B”, “C”);
• from family income.

An important condition for receiving the allowance is active attendance at an ulpan (Hebrew language courses). Payments are made to the Olim’s bank account and can last from several months to a year.

State-subsidized mortgage “Mashkanta le-Ole”

This program is implemented through banks with government support. It offers significantly more favorable terms than standard market mortgage loans. Key advantages:

1. A low interest rate subsidized by the state, which is fixed for the entire term of the loan (usually up to 25-30 years) and may be 1.5-2.5% lower than the market rate.
2. The possibility of obtaining a loan with a minimal down payment (tsumat yad) – only 5-15% of the apartment’s value. Under normal conditions, banks usually require 25-40%.
3. Simplified requirements for proof of income and employment history.

The right to a preferential mortgage is retained by the repatriate and his or her spouse for 15 years from the date of aliyah. The terms (maximum loan amount, interest rate) are most favorable in the first years after repatriation.

The affordable housing program “Tziyun Meyuhad le-Olim”

As part of this program, the Ministry of Construction (Misrad Ha-Bituach) reserves a certain percentage of apartments in new state housing projects specifically for new immigrants. These apartments are sold at discounted prices below market value. Participation in lotteries (pitukhim) for such apartments requires compliance with income criteria and repatriation period criteria (usually no more than 5-7 years from the date of aliyah). Although the waiting list may be long, this program provides a real chance to purchase an apartment at a significant discount.

Medical and social insurance

Israel’s social security system includes compulsory health insurance (Bituach Leumi) and social insurance (Bituach Leumi). New immigrants are subject to special conditions for joining this system. This allows them to access medical care from the very first days and gradually integrate into the social security system. Every resident of Israel, including new immigrants, is required to be insured by one of the four health funds (Kupat Holim): Klalit, Maccabi, Meuhedet, Leumit.

Registration with the health insurance fund takes place automatically within a few days of receiving your teudat zehut (identity card) and teudat ole. The right to receive medical care begins immediately upon being granted repatriate status, even before registration with the fund is complete. Primary medical care, emergency hospitalization, and treatment of acute conditions are covered immediately and in full.

The state subsidizes these contributions through the Ministry of Aliyah and Integration and Bituach Leumi. After 12 months, contributions become mandatory and are calculated based on income (or determined as a minimum contribution if there is no confirmed income).

Social insurance (Bituach Leumi)

Bituach Leumi performs two functions: collecting national insurance contributions (mas bituach leumi) and paying social benefits (metzadim). The rules for new immigrants in 2025 have some special features. If a new immigrant is employed in Israel, contributions to Bituach Leumi are automatically deducted from their salary by their employer from their first day of work. Self-employed individuals are required to pay contributions themselves from the moment they start working.

The right to receive most social benefits from Bituach Leumi (unemployment benefits, child care benefits, disability benefits, minimum subsistence benefits, etc.) arises after fulfilling the conditions of insurance experience and payment of contributions. Exceptions are:

1. Child allowance (Kitnat Yeladim). Automatically paid for each child residing in Israel, regardless of the parents’ insurance record. The amount depends on the child’s age and birth order in the family.
2. Old Age Allowance (Kitnat Zikna): Entitlement arises upon reaching retirement age (which is gradually increasing) and having the required insurance period in Israel. New immigrants who arrived in Israel at an age close to retirement age or older may receive the “Old Age Allowance for New Immigrants” (Kitnat Zikna le-Olim Hadashim) regardless of their insurance record, provided they meet the residency and income criteria. The amount of the allowance is usually lower than the standard pension and requires annual confirmation.
3. Special benefits. In some cases (e.g., for persons with severe disabilities diagnosed prior to aliyah), special types of support may be provided through Misrad a-Klita or Bituach Leumi, sometimes without a requirement for length of service.

Repatriates often arrive with private international health insurance. This insurance is usually arranged through Sochnut. It is important to know that the validity period of such insurance is limited. As a rule, it is only valid for the first 6–12 months after relocation. During this time, repatriates are required to register with the Israeli health insurance fund (Kupat Holim). This is very important. Private insurance does not replace Israel’s mandatory state health insurance. It does not cover all medical expenses in the long term.

Language training and educational assistance

In 2025, the state is paying particular attention to these areas, offering a wide range of free and subsidized programs for adults, children, and young people. The basis for language adaptation for adult olim hadashim continues to be the state ulpan—intensive Hebrew language courses.

Intensive Hebrew language study for adults (Ulpan)

All new repatriates are entitled to free education at the ulpan. The standard “Ulpan Alef” course lasts five months. Classes are held five days a week, five academic hours per day. In 2025, the Ministry of Aliyah and Integration (Misrad HaKlita) continues to pay Ulpan students a special scholarship called “Ma’amak Ulpan.” The amount of the scholarship depends on the type of Ulpan (day or evening) and family composition. Evening and accelerated programs are available for working repatriates, as well as specialized courses called “Ulpan Mikzoi.” These courses focus on professional vocabulary in fields such as medicine, engineering, law, and education.

This condition is also important for receiving the second part of the “absorption basket.” After the basic level, you can continue your studies in the “Ulpan Bet” and “Ulpan Gimel” courses, which are often subsidized by the state or municipalities.

Support in the recognition of academic education and professional retraining

It is very important for repatriates with foreign higher education or professional qualifications to have their documents recognized in Israel. The Ministry of Aliyah and Integration (Misrad a-Klita), together with relevant ministries, assists in this process. It provides advice and financial assistance for completing the mandatory procedures. These include:

• confirmation of diplomas (nostrification);
• taking licensing exams;
• completion of internships (“stazhura”) or adaptation courses.

In 2025, special subsidies are available. They cover most of the costs of exams, retraining courses, or obtaining an Israeli license. Representatives of sought-after professions—engineers, programmers, and medical professionals—receive particular support. Accelerated professional integration programs (Teuda le-Mitzoa) are available for them.

Educational support for children and young people

Repatriated children receive comprehensive assistance to help them adapt to Israeli schools. Students are placed in classes according to their age and receive free additional Hebrew lessons (Ulpanat) directly at school. Many educational institutions have special programs to help new students with language and psychological adaptation. Repatriate students who enroll in Israeli universities within the first three years after moving receive a large discount on tuition (“Masa Harhava”). This discount can be up to 90% of the regular cost. To qualify, students must meet the requirements of the university and the Ministry of Aliyah. In addition to the discount, students can apply for a government scholarship (Ma’amak Student), receive assistance with housing, and have their preparatory courses paid for.

Special programs for qualified and strategic Olim

In 2025, the State of Israel is actively implementing targeted programs for highly qualified specialists, scientists, doctors, engineers, IT specialists, entrepreneurs, and representatives of strategically important professions. These initiatives are aimed at attracting scarce personnel, strengthening key sectors of the economy and science, and integrating such repatriates into the country’s professional life as quickly and efficiently as possible.

The “Return Home: Doctors and Engineers” Program (Hatzarta Baitim: Rofim Ve-Ingenirim)

This program aims to address the shortage of doctors and engineers in Israel. It attracts specialists in healthcare and engineering, particularly in high-tech, infrastructure, and energy. Participants include doctors, highly qualified nurses, and engineers. They receive extensive support that significantly exceeds the standard “absorption basket.” Financial assistance includes large one-time grants (“Ma’anak Strategy”) of up to 50,000 shekels per specialist. Grants are paid after successful employment in Israel and commencement of work in the specialty. Professional support consists of:

To this end, partnerships are established with health insurance funds (Kupat Holim), state-owned companies, and leading engineering firms. The main obligation of the participant is to work in their field of expertise in Israel for an agreed period, usually between three and five years.

The Code: Israel initiative for IT professionals

This program aims to strengthen Israel’s position as a “Startup Nation.” It offers unique conditions for repatriated developers, DevOps engineers, data scientists, cyber experts, and other IT specialists. The main components of the program are accelerated professional “boot camps” lasting 3-6 months. These courses are organized by leading technology companies (such as Check Point, Wix, monday.com) or specialized training centers (such as ITC). These courses focus on Israeli technology stacks, local market requirements, and intensive language training in the context of IT. Participants receive a scholarship for the duration of the training, and successful completion of the course guarantees employment with partner companies at competitive salaries. Additionally, advice on optimizing the tax regime for IT employees and assistance with integration into the professional community are provided.

The Perspective Program (Ofeq) for Scientists and Researchers

Aimed at attracting talented scientists (PhDs and postdocs) to Israeli universities and research centers, the Perspective program offers research grants (Ma’anak Mekhar) of up to 140,000 shekels per year for a period of 2-3 years. These funds are intended to cover the costs of setting up a laboratory, purchasing equipment, paying graduate students, and conducting research. Candidates undergo a competitive selection process that assesses their scientific potential and relevance to Israel’s priority areas (biotech, nanotechnology, artificial intelligence, climate technology, quantum computing) The program includes assistance in obtaining academic positions, mentoring by leading professors, and support in applying for international grants. Special attention is given to repatriated scientists within the framework of the Israel Science Foundation (ISF) projects.

The Startup Nation Center (Merkaz Startup Nation) program for entrepreneurs

For repatriates with entrepreneurial experience or innovative business ideas, there is a startup support program. Participants gain access to business incubators and accelerators offering free workspaces, expert mentoring sessions, legal and accounting support, assistance in product development (MVP), and investment sourcing. The special state fund “Keren Tmura le-Olim” provides start-up grants and investments on preferential terms for promising projects by repatriates, often in the form of a non-repayable grant or convertible loan.

Government subsidies and benefits available to new repatriates in 2025 form a comprehensive and multi-level support system designed to facilitate the complex absorption process as much as possible. From immediate financial assistance through the “Absorption Basket” and significant tax breaks in the early years, to targeted programs in the areas of housing, healthcare, education, and professional integration, these measures cover all critical aspects of life: basic needs, economic stability, access to healthcare, language learning, and career development. Special emphasis is placed on attracting and retaining highly qualified professionals through unique strategic initiatives.