Car Tax Exemption Olim 2026

In Israel, the standard Mas Rechisha on a new car is ~83% of its fiscal value. The Oleh rate is 50%. On a car with a fiscal value of ₪120,000, the saving on purchase tax alone is approximately ₪40,000 — or ₪25,000–50,000 overall depending on the model. Important: for electric vehicles the standard rate (48%) is actually lower than the Oleh rate (50%) — do not use your Oleh benefit on an EV.

• Valid for ONE vehicle during the first 3 years after Aliyah.
• Applies to buying a new or used vehicle in Israel, or importing a personal vehicle.
• Apply through the Misrad Haklita (Ministry of Immigrant Absorption) before the purchase.
• The vehicle must remain in your ownership for at least 4 years. Reselling before that period triggers full repayment of the Mas Rechisha reduction you received — the restriction lifts automatically after 4 years.

Compare both options based on your budget and profile.

Already own a car in France or Europe? You can import it with Oleh benefits, but the process is complex and only cost-effective in specific cases.

• 6-month ownership before AliyahYou must have owned the vehicle for at least 6 months before your Aliyah date (as shown on your Teudat Oleh).
• Vehicle ageThe vehicle must be under 5 years old at the time of import. Beyond that, the process is very complex and rarely worth it.
• Import deadlineYou have 3 years from your Aliyah to import the vehicle. After that, the tax exemption no longer applies.
• One vehicle onlyThe exemption applies to one vehicle. If you import, you cannot also buy a car in Israel with the Oleh benefit.

• 1Get the Oleh authorization (Ishour)Submit your Mas Rechisha reduction request to the Misrad Haklita with your Teudat Oleh and details of the target vehicle. The Ishour is valid for a limited time.
• 2Find the vehicleNew: at an authorized dealership. Used: on Yad2.co.il, Autonet.co.il or private sellers. Always have the vehicle inspected by an independent mechanic.
• 3Check the history (used car)On the Misrad HaTachbura portal (gov.il): accident history, official mileage, past inspections. Also verify Hofesh Mi-Shaavouda (no debt on the vehicle).
• 4Sign the contract (Tofes Yad Shniya)For a used vehicle, the ownership transfer is done via the official 'Tofes Yad Shniya' form from the Misrad HaTachbura. New: contract at the dealership.
• 5Insurance before drivingGet your Bitouah Rechev (car insurance) BEFORE getting behind the wheel. Basic Bitouah Chova is included in the Tesserah. Add Bitouah Mekif (comprehensive) if desired.
• 6Transfer the Tesserah (registration)Go to the Misrad HaTachbura to transfer the registration document (Tesserah) to your name. The Tesserah must be renewed annually.

• Shilout (road tax)Annual Tesserah fee: 600–2,000 ILS depending on engine size and vehicle type.
• Tofen (vehicle test)Mandatory annual inspection for vehicles over 2 years: 200–400 ILS. Invalid Tofen = no Tesserah renewal.
• Mekif insuranceComprehensive cover: 3,000–7,000 ILS/year depending on age, car value, and driver history.
• Fuel (Benzin)Petrol (95 octane): approximately 6.80–7.20 ILS/L in 2026. Diesel slightly cheaper.
• Routine maintenanceOil changes, tyres, service: budget 2,000–4,000 ILS/year depending on usage and model.

• Bank loanAvailable once you have an Israeli bank account. Rates in Israel: 4–8%/year. Typical term: 36–60 months. Requires proof of income.
• Leasing (Hevrat Leasing)Very common in Israel. You pay a monthly fee without owning the car. Note: you do NOT benefit from the Oleh Mas Rechisha exemption if the leasing company is the buyer.
• Leasing with Oleh benefitSome companies offer leasing that transfers the Oleh exemption. Verify the terms carefully — the benefit is sometimes partially or fully passed on.
• Dealer financingDealers often offer their own financing. Always compare with your bank before signing.

• Yad2.co.ilThe go-to site for used car listings in Israel. Large selection, filters by region, mileage, price.
• Autonet.co.ilNew and used car listings. Allows comparison between dealership and private prices.
• Misrad HaTachbura (gov.il)Official portal to check vehicle history, past inspections and Tesserah status.
• WinCarApp for comparing market prices and valuing a used vehicle based on its actual condition.