Moving to Israel is exciting, but it can also be intimidating. Many people worry: “Can I really afford to live here?” The good news is that with a little planning and creativity, you absolutely can. Here’s how.
Cost of Living
Israel is not cheap. Rent in Tel Aviv or Jerusalem is high and groceries, utilities and the cost of owning a car are also more expensive than in many countries. If you have kids, daycare, private school (if needed) or after-school programs can add up quickly.
But not all cities are as expensive. Smaller or more out of the way towns like Haifa, Be’er Sheva or Ariel can be significantly more affordable. All around the country, public transportation is pretty inexpensive, and health insurance, public school, cell phones and seasonal produce may be less expensive than in your home country.
By choosing where you live, shopping smart and taking advantage of local benefits, you can keep your costs under control without missing out on life here.
Income realities
Your earning potential in Israel depends heavily on your industry. In hi-tech, salaries can be surprisingly competitive, sometimes even higher than equivalent roles in the US. On the other hand, education, healthcare and non-profits often pay less than in other countries.
A move to Israel is an opportunity to reimagine your career if you’re not happy with what you’re doing or your current career doesn’t translate well to the Israeli economy. Since you’re already making a big change, it’s a great time to choose a career you’ve always dreamed of, open your own business or retrain in something more lucrative.
Many Israelis supplement or make their entire income by working for international clients in dollars or euros. This is a common strategy for newcomers looking to offset local costs. If you enjoy your job and your bosses are amenable, bringing your job on aliyah with you can help you make a living while you adjust to Israeli life.
Creative ways to make money
In Israel, it’s completely normal to juggle more than one job, whether that means pairing a passion project with something more stable or adding a few extra hours through a second role. If you want more security or flexibility, combining multiple income streams can be a smart way to build financial resilience. Common side hustles include:
- Tutoring, online teaching or consulting for international clients
- Freelance work in tech, design, writing or marketing
- Starting a small business in tourism, food, crafts or digital services
- Remote customer support
- Personal training, yoga instruction or nutrition coaching
- Selling products online through Amazon, Etsy, Shopify or other platforms
Planning and budgeting
The secret to reducing financial stress is knowing your numbers. Compare your approximate expected income with rent, bills and lifestyle costs, and create a budget that takes everything into account. Decide where to cut corners, at least at first, and what you absolutely can’t live without.
Aliyah is always going to be a leap of faith, but if possible, start gradually by keeping a remote client or part-time work while settling in. In the meantime, leverage your network both for finding work and for insider tips on living affordably. Join online forums, Facebook groups or local communities of English-speaking Israelis. You’ll feel less alone and you’ll get practical advice and assistance.
Remember to maximize your tax credits and benefits. New immigrants often qualify for special exemptions and deductions that reduce taxes and increase take-home pay. Check with your new employer that you’re receiving all the tax credits you deserve, and be in touch with your aliyah advisor to ensure you aren’t missing out on benefits.
It can be done
Yes, living in Israel can be expensive, and it’s normal to feel nervous about finances. But thousands of people make it work every year, often discovering that their standard of living improves once they understand how to navigate rent, taxes and income streams.
With planning, flexibility and a willingness to explore both local and international work opportunities, you can thrive financially and enjoy all that life in Israel has to offer.
