Cost of Living in Israel

The cost of living in Israel varies depending on where in the country an expat decides to settle and what type of lifestyle they aspire to. Urban centres are more expensive than desert outposts or mountain towns. Tel Aviv, Israel's most cosmopolitan destination, was ranked 6th in Mercer's Cost of Living Survey for 2022. With four Swiss cities claiming slots two through five and Hong Kong taking the top spot, it's clear that very few countries outdo Israel when it comes to cost of living.

Wages in Israel tend to be low, despite the government offering numerous incentives and salary subsidies to new immigrants in accordance with the process of aliyah (the right of return). Additionally, many expats feel that taxes in Israel are exorbitantly high, with both import taxes and excise taxes leaving buyers bearing the brunt of costs. 

Cost of accommodation in Israel

The cost of accommodation in Israel varies depending on location, but is certain to be an expat's largest expense.

As most people in Israel, expats and locals alike, want to live in Tel Aviv, the economic centre of the country, the demand for housing is huge and there are not enough homes to meet the demand. The lack of an adequate transport system also means that people want to live close to the city centre and to work. Expats opting to live in the centre of Tel Aviv will pay dearly for their accommodation.

That said, for the wallet weary, house-sharing is still a popular option and a great way to save money for those who don't mind living with strangers. 

Cost of food and entertainment in Israel

The cost of food in Israel is reasonable if eating in, but expensive if dining out. Fresh fruit and vegetables are cheap, whereas dry goods and meats can end up being on the expensive side. Thankfully, Israeli shopping culture supports haggling, so bargains can be found at markets. 

Evening entertainment, including going out for dinner or indulging in a drink or two after work, can be costly. Tickets for the cinema, music concerts or other avenues of entertainment are similarly expensive. 

Cost of transport in Israel

Owning a car in Israel is extremely expensive. The Israeli government does offer benefits to new expats who decide to buy a car, but there are stipulations relating to the number of years the car must be owned and the number of people who can drive it. Petrol is becoming prohibitively expensive, and Israel has some of the highest taxes on buying vehicles. 

Most locals and expats use public transport to get around in Israel, which primarily consists of trains and buses. Fares vary depending on distance and the route travelled.

Individual inter-city taxis can be expensive but can be a good option for getting around in a large group. 

Cost of living chart for Israel

Note that prices may vary depending on product and service provider and the list below shows average prices for Tel Aviv in September 2022.