Navigating Finances in Israel: Expert Tips for New Immigrants
A panel at the Global Aliyah Live Summit urged new immigrants to prepare financially for Israel's unique banking, high housing costs, and a challenging first year by building a strong safety net and doing thorough research.
Immigration involves far more than booking a flight, finding an apartment, and learning Hebrew. It also entails transferring an entire financial life into a system that may operate very differently from what newcomers have known for decades. This topic was at the center of the "Money in a New Country" panel at the Global Aliyah Live Summit by Ynet Global, featuring Eyal Efrat, Head of the Banking Division at Bank Leumi; Eran Berkovich, Director of the Aliyah and Integration Department at the Jewish Agency for Israel; Bari Gertler Hartov, a mortgage advisor; and Elon Gilad, CEO of Belong. Their consistent message was clear: do your homework before arrival, expect the transition to take longer than you think, and do not underestimate the amount of money that may be required in the first year.
Understanding the Israeli Financial System
For Efrat, who immigrated himself in 1994, one of the first lessons newcomers must understand is that the Israeli financial system does not necessarily operate like the one they left behind. "The Israeli economic system is somewhat different from other banking systems in the world," he said, noting that every immigrant arrives with different expectations depending on their country of origin. His primary recommendation is simple: learn how the Israeli system works before making significant financial decisions.
These differences can appear almost immediately. Mortgages are structured differently, with various tracks, currencies, and schedules. The Israeli credit card system can also surprise new immigrants, especially those accustomed to traditional debit systems or revolving credit abroad. Deposits, loans, and cross-border financial rules can add an extra layer of complexity. However, immigrants arriving today also benefit from significantly more assistance compared to previous generations. Efrat pointed to multilingual banking services and technological tools designed to facilitate navigation through the system, including the expansion of the Leumi app into Hebrew, English, French, Russian, and Arabic. The important thing, he stressed, is not to assume that what worked financially abroad will automatically translate to Israel.
Housing Realities and Resetting Expectations
Perhaps nowhere is this adjustment more dramatic than in the housing sector. Gertler Hartov warned that immigrants may arrive with expectations based on the home they owned abroad, only to discover that a comparable property in Israel can be significantly more expensive. A family selling a large house in the United States or another relatively inexpensive market, for example, may find that the proceeds are insufficient to purchase anything close to the same amount of space in Israel.
"Housing prices here are high," Gertler Hartov said, adding that calling them "higher" might be an understatement.
This does not mean immigrants should wait until they arrive to start dealing with housing. According to Gertler Hartov, it has become increasingly practical for immigrants to purchase property in Israel even before making Aliyah, as Israeli mortgage banks are accustomed to working with prospective immigrants from abroad. For some families, purchasing before the move can provide a significant anchor: they know where they will live and have a much clearer picture of their housing costs even before landing at Ben Gurion Airport.
Financial Safety Nets and the Challenging First Year
Beyond housing, the panel repeatedly returned to one critical period: the first year. "The first year is economically challenging," Gertler Hartov said. New immigrants often leave behind jobs, careers, and established professional networks. Even when they possess strong skills and experience, rebuilding that earning power in Israel can take time. His recommendation is to arrive with a financial safety net.
Gilad agreed, warning that many immigrants underestimate not only the cost of the move but also the time it takes to truly land. They prepare extensively for the Aliyah itself, he explained, but reaching their full earning potential in Israel can take much longer. During those initial months—when income may be lower—expenses can be exceptionally high.
Professional networks also matter greatly. "Many things here in Israel are based on connections," Gilad said. Building these connections, finding the right job, and learning how the Israeli labor market operates all take time. That financial safety net can therefore provide something equally valuable: the ability to wait. Instead of feeling obligated to take the first job offer or the first housing option because their savings are running out, immigrants with more breathing room can negotiate and make decisions based on their long-term goals.
Mastering Israeli Negotiation and Regional Diversity
Berkovich emphasized another adjustment that is cultural as much as it is financial: negotiation. Immigrants not only need to learn Hebrew, he suggested; they also need to learn how to "speak Israeli." From banking and furniture to cars and apartments, negotiation remains a part of daily financial life in Israel in a way that can feel unfamiliar to newcomers from certain Western countries.
"When you go into a bank, you haggle. When you go to buy furniture in a store, you haggle," Berkovich said, adding that the same applies to purchasing a car or arranging housing.
Berkovich also encouraged new immigrants not to restrict their search to Israel's expensive central corridor. Communities in the north and south can offer different opportunities in housing, employment, education, and quality of life, while simultaneously allowing newcomers to take part in the ongoing building and development of these regions.
Pre-Aliyah Preparation and Patience
When asked to identify the financial decisions newcomers should consider before boarding a plane, the panelists' answers formed a practical roadmap: choose a bank that understands the unique needs of immigrants, think seriously about where you want to live, research Israel's financial systems before arrival, and prepare a financial reserve larger than initially thought necessary.
Underlying all these recommendations was another piece of advice: be patient. There will be bureaucracy, unfamiliar terminology, and moments when financial habits taken for granted abroad no longer apply. But these gaps are bridgeable, especially for immigrants who arrive ready to learn, ask questions, and adapt.
