Understanding Your Status: The Oleh Chadash Tax Privilege
Making Aliyah is a transformative step, and the Israeli government offers significant logistical support to new immigrants (Olim Chadashim). One benefit for your move is the tax-free importation of personal household goods.
This privilege allows you to bring almost everything you own-from furniture and appliances to books, linens, and kitchenware-without paying the high Israeli VAT, purchase tax, or customs duties, which can total over 30% for standard items.
The Three-Year, Three-Shipment Rule
To maximize this benefit, you must understand the rules of engagement:
- Three Shipments Only: You are permitted a maximum of three separate shipments, whether by air or sea, or some combination. Postal shipments and vehicles do not count as shipments.
- Three-Year Window: All three shipments must arrive and arrive in Israel customs within three years of your official Aliyah date. If your shipment was scheduled to ship out in time to arrive within three years, there may be some leniency.
- Returning Residents: Note that “Returning Residents” who have been away for 2 years are limited to two shipments within a nine-month window.
It is vital to plan the size and timing of these three shipments carefully, as once they are used, the tax-free status expires.
What’s in and What’s Out: Defining “Household Goods”
The definition of tax-exempt household goods is broad, but has specific limitations set by the Ministry of Finance:
Exempt (Tax-Free)
- Furniture and Decor, ex. sofas, dining sets, beds, lamps, artwork…
- Personal Effects, ex. clothing, books, toys, kitchenware, tools…
- Electronics, ex. 3 televisions and 3computers
Taxable
- Building Materials: Tiles, plumbing fixtures, countertops, and raw materials are generally taxable (around 30%). If you are building or renovating, budget for these taxes or purchase these items locally. There have been entire “kit to build a house” shipments that have been exempted.
More than one of any appliance.
- Commercial Quantities: of anything, food, wine,
- Prohibited: electric scooters/bikes and seeds are red flags and often result in costly customs inspections, seizure, and the dismantling of your container. Avoid shipping these items.
The American Appliance Advantage
A frequent debate among Olim is whether to bring large American 110V or 220v appliances.
- Cost Savings: High-quality American appliances (like large refrigerators, washers, and dryers) can be purchased in the US for often less than a third of the price of comparable units in Israel. Even with the cost of a high-quality transformer, the savings are substantial.
- Size and Speed: American washers and dryers are typically larger and complete a cycle faster (e.g., 20 minutes for a wash) compared to the standard European models sold in Israel.
- Adaptability: Appliances like ovens and refrigerators can be easily used with a transformer. Modern supply chains also mean spare parts are more readily available than in the past.
Expert Tip: Plan your kitchen space to accommodate larger American dimensions, known as an “appliance wall,” rather than the smaller, pre-fixed European spaces common in new Israeli construction.
The Vehicle Exception
Shipping a car is an entirely separate matter. While heavily subsidized for Olim, it is not tax-free.
- Oleh Tax Rate: An Oleh Chadash pays approximately 80% tax (including VAT and duties) on the vehicle’s value, compared to over 120% for a standard Israeli citizen.
- Depreciation is Key: If you bring a used car, the tax is calculated based on the car’s depreciated value, making shipping a 3–4-year-old vehicle highly economical compared to buying new in Israel.
Secure Your Journey: Partnering with an Israel-Based Shipper
The complexity of customs forms, volume calculations, and tax-benefit maximization requires local expertise. It is strongly recommended to use a shipping company based in Israel like KEF International. Having your contract with an Israeli entity ensures accountability and direct handling of any customs issues or delivery challenges that arise locally.
By understanding your Oleh rights and planning your three shipments strategically, you can save significant money and ensure a seamless, stress-free move.
