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Tax Calculation

Sonigo International Services on Import to Israel and export from Israel includes handling the formalities involved in clearing your shipment through customs. If you want an idea of what import duties will be due on your shipment, please contact us directly.

Please review our free informational pamphlet for Rights and Duties for personal import to Israel.

You can also contact the Ministry of Finance (Meches)-English-Hebrew for more specific information on Import duties to Israel:

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Overview:

This guide is an overview for importing household goods and personal effects into Israel. While we try to offer accurate information, laws change and individual cases may not fit the categories below. Please remember, ultimately Meches (Customs - Ministry of Finance) decides on all import duties and taxes issues.

The package of rights outlined below is for people making aliya (or returning to Israel) from Australia, Canada, New Zealand, South Africa, United Kingdom, United States, and other (but not all) Western countries. Meches will review the country from which the Aliya Visa was issued to determine your Rights Package. Meches typically grants rights packages according to the county in which your Aliyah Visa was issued.

Toshavim Hozerim receive the same rights, regardless of the country from which they are returning.

To help New Olim and Toshavim Hozerim establish their home in Israel, Meches allows certain benefits to help you set up your home and maintain the standard of living you enjoyed in the old country. This guide is not for commercial import.

Outside of exceptions and exemptions listed below, all imports of personal effects and household goods (even if used) are taxable. Taxes are based on “Declared value” of goods, and the specific item’s “Tax Rate.” For a rough estimate of taxes on your import of household goods, please send a detailed list (including approximate age) of what you will be importing. We will be happy to respond with a rough estimate of what taxes will be due on your shipment.

For new merchandise, a receipt is required when clearing the shipment through customs. Many new items, made in countries with a Free-Trade agreement, enjoy a Tax-Exemption. In order to receive this, you or your shipper need to supply a “Certificate of Origin” or a “Euro-One” stating goods were manufactured in the country with which Israel has the free trade agreement. Your shipper can arrange this, for a fee. Please note, if importing new US manufactured items from the US, your Certificate of Origin must state it is for the “Free Trade Agreement Between the USA and Israel.”

The first step in determining your “rights” is to know your “Status” in Israel. These are the basic options:
  • Oleh Hadash
  • A-1 Visa
  • Katin Hozer
  • Ezrach Oleh
  • Toshav Hozer (Outside of Israel more than 6 years)
  • Toshav Hozer (Outside of Israel more than 2 and less than 6 years)
  • Citizen (with no rights)
  • Tourist
  • Student

If your status is not listed, feel free to contact us for more information.

If a person of one Status (say Oleh Hadash) marries a person of another Status (say Toshav Hozer) the family can only open one “Tik” (file) with Meches. As you will see, it is best to open the “Tik” under the person with a larger rights’ package. If one person has used rights, you must check with Meches to determine what rights may still be available to the family.

Oleh Hadash
An Oleh can import 3 “Oleh” shipments of any size within 3 years of making Aliya. If a shipment is larger than a full container, it will count as 2 shipments unless both shipments come in on the same ship and are cleared through customs at the same time. What you bring with you on your Aliyah flight will not count as one of these three imports. Your shipments can come from any country, not only the country from which you are making Aliya.

Benefits
  • Olim are exempt from paying the 1.02% port tax on the value of their Oleh Shipments.
  • Port facilities are not ideal for long-term storage.
  • Tax free items that may be imported:
    • Books, clothing, linens, kitchen utensils, pictures, decorations, media, and general “Personal Effects”
    • One of each type of appliance or electronic equipment. (These are for household use, not office equipment such as a fax).
    • Carpeting up to 25% of the area of the oleh’s home in Israel.
    • Olim can import Air Conditioners, Fans, and Heaters relative to the number of rooms in their new home in Israel.
  • Olim can buy an Israeli Made refrigerator or air conditioner in Israel tax-free. There is a process for doing this, so don’t walk into a store with your Teudat Oleh and expect to get a discount. You need to go to a participating store, get a pro-forma invoice, take that to Meches, get it stamped, and then return to the store.
  • Olim can either buy a car in Israel or import a car and only pay 72%-80% in Taxes (as opposed to 120% – 125% for citizens). If you want to use your rights when buying a used car, you must buy from someone who previously bought with Oleh rights (called passport-to-passport).

Importing a Car
In order to import a car (or motorcycle) you will need a clean title (no liens) on the vehicle and the title must be in the Oleh’s name. You will also need:
  • Your Israeli Driver’s License,
  • A letter from Ministry of Transport approving personal import for the specific vehicle,
  • A letter from the vehicle’s authorized importer stating they are willing to supply parts for the vehicle (you are not required to order parts through them).
  • Your driver’s license from overseas.

Notable Exceptions to Tax Free Imports
  • Sports Equipment
  • Camping Equipment
  • Bar-b-q Grills
  • Fax Machines
  • Outdoor furniture and swings
  • Pool tables and ping-pong tables
  • Building supplies and non-household goods
  • A motorized wheelchair needs approval before being imported
  • Alcohol is highly taxable, and any import over 5 liters must have proper approvals before importing
  • Weapons are highly restricted and should not be imported.
  • Olim and toshvim hozrim pay 15.5% VAT on all Israeli services such as Israeli customs clearance and delivery in Israel.

All goods imported with rights must stay in your possession for six years from the date of import or depreciated taxes must be paid to Meches. (A car must stay in your possession for five years).


A-1 Visa
A person entering on an A-1 Visa has the same rights as an Oleh Hadash, however they must pay 1.02% port tax on their sea shipment’s declared value, and they do not get discounted storage at the port.

Before your shipment can be cleared through customs in Israel, you must go to your local Meches Office (Tel-Aviv, Jerusalem, Ashdod or Haifa) with your Israeli passport (if you have one), Teudat Zehut, Foreign Passports with A-1 Visa and rental contract or housing agreement. Meches will stamp your passport and enter you into the computer as having rights.

Katin Hozer
A person entering as a Katin Hozer has the same rights as an Oleh Hadash, however they must pay 1.02% port tax on their sea shipment’s declared value, and they do NOT get discounted storage at the port.

Before your shipment can be cleared through customs in Israel, you must go to your local Meches Office (Tel-Aviv, Jerusalem, Ashdod or Haifa) with your Israeli passport (if you have one), Teudat Zehut, Teudat Zchuyot, Foreign Passports and rental contract or housing agreement. Meches will enter you into the computer as having rights.

Ezrach Oleh
A person entering as a Katin Hozer has the same rights as an Oleh Hadash, however they must pay 1.02% port tax on their sea shipment’s declared value, and they do NOT get discounted storage at the port.

Before your shipment can be cleared through customs in Israel, you must go to your local Meches Office (Tel-Aviv, Jerusalem, Ashdod or Haifa) with your Israeli passport (if you have one), Teudat Zehut, Teudat Zchuyot, Foreign Passports and rental contract or housing agreement. You will also need copies of your parents passports (indicating they are Israeli) and proof that you are their child (Birth Certificate). Meches will enter you in the computer as having rights.

Toshav Hozer (Outside of Israel more than 6 years)
If you are an Israeli Citizen who has been outside of Israel more than six years, and has spent less than 120 days per year in Israel, you can qualify as a Toshav Hozer of 6+ Years.

This allows you to bring in 2 “Toshav Hozer” shipments in 9 months of your return. Before your shipment can be cleared, you must go to meches with your Israeli passport, Teudat Zehut, Foreign Passports (if any) and rental contract or housing agreement. Meches will stamp your passport and enter you into the computer as having rights.

A person entering as a Toshav Hozer of over 6 years has the same rights as an Oleh Hadash for household goods and appliances/electronics, however they must pay 1.02% port tax on their sea shipment’s declared value, and they do NOT get discounted storage at the port.

Toshavim Hozerim do not get tax-discounted cars, however they can import a car up to four years old.

Toshav Hozer (outside of Israel more than 2 and less than 6 years)
If you are an Israeli Citizen who has been outside of Israel for more than two years, and has spent less than 120 days per year in Israel, you can qualify as a Toshav Hozer of two – six years. This allows you to bring in two “Toshav Hozer” shipments within nine months of your return.

Before your shipment can be cleared through Israeli Customs you must go to meches with your Israeli passport, Teudat Zehut, Foreign Passports (if any) and rental contract or housing agreement. Meches will stamp your passport and enter you into the computer as having rights.

A Toshav Hozer of 2-6 years is entitled to bring in books, clothing, linens, kitchen utensils, picture and decorations, media, and general “Personal Effects” Tax Free, as well as one computer, however they must pay 1.02% port tax on their sea shipment’s declared value, and they do not get discounted storage at the port.

Toshavim Hozerim do not get tax-discounted cars, however they can import a car up to 4 years old.

Israeli Citizens
Israeli citizens do not get any discounts from Customs’ duties, unless they are importing something they had previously exported. In this case, you will need a copy of the Customs stamped export packing list. Many items only get charged VAT (“Ma’am” - currently 15.5%) such as books, musical instruments, bicycles, computers, and as such, may be worth importing.

Israeli Citizens can import a car up to 2 years old.

Tourists
Tourists do not get tax discounts when importing, however many items are still worth importing and paying taxes versus buying here in Israel. High end furniture, appliances, clothing, kitchenware and other household goods are often less expensive to ship and import. Feel free to send us a list of what you plan to ship for an estimate of import duties.

Tourists can import a car without paying taxes, however the car can only be here for 3 months. After 3 months, you must get an extension from Meches. After 6 months the car must leave. There are certain variations on this law depending on the type of tourist visa you have (student visa, B1 Visa, etc). With a Student Visa, you may keep the car in Israel as long as enrolled in a recognized institute of higher education.

Business/Commercial Imports
Laws involving business or commercial imports are complex and varied. Feel free to contact us with your specific shipment’s details and we can help you plan your import and custom clearing.


We wish you much luck on your move to Israel.


Tags: Export Institute Israel, How to Move to Israel
 
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