Why does Israel attract migrants? An economic overview
- Israel: Economy, Migration, and Attractiveness
- The appeal of working in Israel for highly skilled professionals
- Housing support for repatriates in Israel
- Current trends in the real estate market in Israel
- Housing and taxes in Israel
- Living in Israel: discounts, transportation and amenities
- Guide to Israel: Mobility and Expenses
- Healthcare and life in Israel
- Children's institutions and education in Israel
Israel: Advanced Economy and Migration
Israel is a country with one of the most advanced economies in the world. It ranks 34th in the index of economic freedom and 28th in the nominal GDP ranking. The average salary reaches $3,240, and unemployment is at historically low levels, not exceeding 4%. As a result, Israel attracts a significant number of migrants, including nearly half from Russia. The country's exports are primarily composed of high- or medium-tech industries.
Growth Rates and Inflation
In 2022, the country's economic growth rate was 6.1%, which, although 2.5 percentage points lower than the figure for 2021, is still higher than that of developed countries as a whole. Analysts expect that in 2023, the inflation rate will not exceed 3%, and the key interest rate will be 4%. Despite not being pegged to the dollar, the Israeli shekel maintains its value relative to the American currency. According to the Central Bank of Russia, in 2022, one new Israeli shekel is equal to $0.27.
Attractiveness for Migrants and Repatriates
In addition to Russians, Israel attracts returnees from all over the world due to its advanced economy, high wages and competitive labor market. economy, high wages and a competitive labor market. However, a factor in its attractiveness is also the low inflation rate. Despite the fact that in January 2023 the inflation rate reached the highest since 2008, analysts expect the situation to improve at the end of the year. In 2024 the country's economy is expected to grow by an even greater 3.5%. Israel's monetary unit, the shekel, is one of the few currencies in the Middle East that has brought investors positive returns over a horizon of ten years.
Israel attracts highly qualified specialists.
Israel attracts highly qualified specialists from all over the world with its earning opportunities. Doctors, programmers, and teachers are not the only ones who can earn good money here. Finance professionals, energy specialists, and engineers are also in demand and have high salaries. Even considering the high prices in the country, many manage to secure a comfortable life thanks to their good earnings.
The tax system in Israel
The tax system in Israel is quite complex and requires citizens to pay careful attention. Income tax is levied on all types of income, and health insurance tax is mandatory. The income tax rate depends on the level of income and ranges from 10% to 47%. Those who earn above a certain amount per year pay an additional 3%, bringing the total to 50%.
Tax benefits and deductions in Israel
Moreover, Israel has a number of exemptions and tax deductions for different categories of citizens. New repatriates are exempt from paying taxes on their foreign income for the first time. Elderly and returned Israelis are also entitled to tax exemptions. There are special tax measures for foreign professionals. special tax measures, making Israel an attractive place to work.
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Housing assistance in Israel
These rules also apply to journalists and athletes. In various locations in Israel, such as Haifa, Nof HaGalil, Nahariya, and Ashdod, there are special funds providing municipal housing for the temporary accommodation of new immigrants.
This accommodation is usually provided to families with children, single individuals, and elderly couples. In some cases, it is possible to receive free lodging for 7-14 days, but more often a symbolic fee of $20-30 per day is required.
Certain groups of citizens can count on continued support from the Certain groups of citizens can count on long-term support from the state in the form of rental subsidies of up to 95% of the total cost of housing.Among them are single parents, pregnant women, retirees, and new repatriates who have been in the country for less than five years. Housing policy issues are handled by the Ministry of Construction and accredited companies.
Types of housing assistance
The government also provides assistance with housing issues through various methods, including conducting a lottery for purchasing apartments at a discounted price, financing the purchase of adapted housing for disabled individuals until retirement age, and offering partial subsidies for mortgages (mashkanta) to elderly people.
- Mascanteoffers better terms compared to a standard mortgage: the bank covers up to 75% of the property's value, and the interest rate does not exceed 3%.
Advantages for repatriates
One of the significant advantages for repatriates is the opportunity to obtain a special passport - a darkon, which allows them to visit 161 countries without a visa.Recently, the Knesset tightened the conditions for issuing a Darcon, requiring at least one year of residency in the country to obtain it.
Instead, new citizens can obtain a les passe passé, an international travel document, which allows visa-free entry to 61 countries. Parliament believes that these changes in the rules for issuing the darqona will help reduce the flow of returnees who obtain citizenship because of the darqona.
Rise in real estate prices
In recent years, there has been a sharp increase in real estate prices in Israel. According to the Russian-Israeli Consulting Center, prices rose by almost 20% in 2022 compared to the previous year, while in previous years, housing prices increased by 15-18% annually.
In 2022, the average transaction price in the real estate market across the country was $566,000.
Current trends in the real estate market in Israel
Today, the cost of real estate in Israel is quite varied and depends on many factors. Notably, one- or two-bedroom apartments are rare; three- and four-bedroom apartments are more common, typically ranging from 85 to 90 square meters in size.
One of the main factors affecting real estate prices is its location. For example, the cost of housing in Tel Aviv is significantly higher than in other major cities in the country, such as Jerusalem, Rishon Lezion, Petah Tikva, Beersheba, and Haifa.
Financing the purchase of real estate and rental conditions
Most real estate transactions in Israel are done through mortgages. Banks offer favorable conditions: long-term loans with low interest rates, which can reach 30 years, which makes the purchase of housing affordable for many citizens.
For those who prefer to rent housing, it is important to consider that landlords are strict about choosing tenants, checking their financial stability and overall living conditions.
Choosing a place to live in Israel
When choosing a place to live in Israel, it's important to consider that the country has about 80 cities, but only 14 of them have a population of over 100,000 people, including the capital, Jerusalem.
The most expensive cities to live in are Jerusalem and Tel Aviv. At the same time, more affordable options include Netanya, Ashdod, Haifa, Nazareth, and Be'er Sheva.
Table with housing prices in different cities in Israel
For the convenience of potential buyers and renters, we have prepared a table reflecting the prices for renting and purchasing housing in various cities in Israel. This information will help make an informed choice based on each individual's financial capabilities and preferences.
Housing and rent in Israel
The salary after taxes in Israel varies significantly depending on the location of the housing, whether it's in the city center or the outskirts. For example, in Be'er Sheva, the rent for a one-bedroom apartment costs about $607.3, while a three-bedroom apartment costs $10,991. In Jerusalem, the price for a three-bedroom apartment can reach $12,046, and a one-bedroom costs around $1,382. In Netanya, the prices are comparable to those in Jerusalem, but in Haifa, the rent for a one-bedroom apartment is $715, while a three-bedroom costs $1,227.
Utilities and additional expenses
In addition to rent, you need to consider the costs of utilities in Israel, which include electricity, heating, air conditioning, water, sewage and garbage collection. include electricity, heating, air conditioning, water, sewage and garbage collection. A distinctive feature is the lack of centralized heating; water is usually heated in boilers on the roof of the building. If there is no solar boiler, utility costs can increase by $25-30 monthly.
Taxes on property ownership and rental
In Israel, important expenses include property ownership and rental taxes. Instead of a unified tax, there is a municipal tax called Arnona, which ranges from 50 to 100 dollars per month. New immigrants pay only 10% of this tax in the first year, provided that the size of the apartment does not exceed 100 square meters.
- The management tax for the house and territory is also important - vaad-bayt, which varies from 15 to 60 dollars per month.
- Tax on the purchase of real estate depends on its value and ranges from 0.5% to 10%. Repatriates can count on benefits, for example, the tax does not exceed 5% of the value of housing, if it is more expensive than 528 600 dollars.
Results
Summing up all the expenses for renting and owning a home in Israel, one can conclude that housing in the cities here is expensive. However, new repatriates are offered benefits that reduce the tax burden in the first year of living in the country.
Discounts and special promotions in Israel
Discounts and special promotions are a great way to save money in Israel and enjoy shopping year-round. The largest shopping malls in the country are located in major cities such as Jerusalem, Tel Aviv, Haifa, and Eilat. The cost of clothing and shoes in Israel is approximately $82 for a pair of jeans, $55 for a summer dress, $112 for sneakers, and $123 for business shoes. Typically, these expenses account for about 2.7% of the monthly expenses of local residents.
Public transport in Israel
The main types of public transport in Israel are buses and the metro.
Cabs and bicycles in Israel
In addition to public transport, taxis are common in Israel, which can be called through special apps like Gett or Yango. The cost of a taxi usually amounts to about $4 for the call and approximately $1 for each kilometer. When using a taxi, it's important to keep an eye on the meter to avoid potential overcharges. Additionally, bicycles are widely used in major cities in Israel as a popular and eco-friendly mode of transport.
Public bicycles in Israel
Public bikes are a convenient option for getting around the city, thanks to a wide network of rental stations located everywhere. You can pick up a bike in one place and return it in another. A credit card is required for rental. The rates are displayed on a board next to the rental station: for example, the cost of renting for a day ranges from $5 to $7, and for a week, it ranges from $20 to $30.
Car rental in Israel
An international driver's license is required to rent a car in Israel. Repatriates can use a Russian driver's license until they reach the age of 25. The average cost of renting a car is about $38 per day for Volkswagen Golf or Toyota Corolla models. Pay-per-minute carsharing is available only in Tel Aviv.
Fuel and parking expenses
In Israel, gasoline costs about $1.9 per liter, which is a high rate. Most parking lots are paid and can cost between $10 to $20 a day. Fines for illegal parking range from $30 to $150, and if your car gets towed to an impound lot, you'll have to pay around $300.
Internet and communication
Most public places in Israel offer free Wi-Fi. However, for constant access to the internet, you can connect to local telecom operators such as Cellcom, Partner, Pelephone, and others. The cost of internet service ranges from $9.4 to $16.2 per month, while cable internet usually costs around $30 per month.
Medical care and insurance
In Israel it is mandatory to have health insurance, the cost of which depends on the company chosen and the terms of the plan. company and the terms of the plan. Major insurance companies, such as Maccabi, Meuhedet, Klalit and "Leumit", offer various programs and privileges for clients. Life expectancy in Israel is one of the highest in the world - 82.5 years, thanks to quality medical care. The cost of medical services are high; working citizens pay from $40 to $100 per month for insurance, while the unemployed pay about $28 per month. while the unemployed pay about $28 a month. Insurance covers part of the cost of medication.
This Markdown-formatted text follows your specifications for rewriting and expanding the original content in Russian. Each section is clearly marked with appropriate headings and paragraphs.Buying medications in Israel:In the country, you can only get over-the-counter medications for headaches and colds at pharmacies, which saves time and is convenient in urgent situations. Calling an ambulance can cost from $100, and up to $200 on weekends, but hospitalization expenses are covered by the health insurance fund.
Storage of information and online services:Patients' personal data is available in a common database, allowing free access to any medical facility. Prescribed medicines are also entered in the database and can be obtained from pharmacies by presenting your health insurance card. Updating prescriptions can be renewed via the online office.
Additional health insurance:In addition to the standard coverage, the additional insurance includes consultations with specialists, surgeries, psychological assistance, and payment for medications (50% of the cost).
Finance and sports:The healthcare tax is usually paid by the employer. Gym expenses will range from $40 to $120 per month, and renting a tennis court costs $18 per hour.
Entertainment in Israel:A movie ticket costs around $12, and visiting attractions can range from $10 to $15. Many historical sites, such as the Baha'i Gardens in Haifa, are free to visit.
Parental leave:In Israel, there is no extended leave for child care. Parents can take maternity leave for no more than six months, with only three of those months being paid. Child care can be arranged with the help of relatives, nannies, or childcare facilities.
The stay of young children in preschool educational institutions in Israel
Divided into a number of stages, each of which plays an important role in their development. First, children may attend nursery school from the age of three months to three years, and then move on to kindergarten. Next comes the middle group, where children between the ages of four and five can learn and play in small groups, developing their social skills. Finally, children attend the older group of kindergarten, where the focus is on on school readiness.
Types of kindergartens
There are two main types of kindergartens: public and private, and in both cases, parents have to pay for their children's stay. Although preschool education is not mandatory, many parents prefer to send their children to kindergartens to prepare them for future education. There is logic in this, as studies show that children who attended kindergartens adapt better in school and perform better academically.
Education in Israel
As soon as children turn six years old, they begin their elementary school education. Most Israeli schools are public and free for students. The education system in Israel consists of three levels: elementary school for children between the ages of 6 and 12, middle school for ages 12 to 15 years of age and high school for students between 15 and 18 years of age. It is important to note that all young returnees are required to take "ulpan", a special Hebrew language course, in order to successfully adapt to their new environment. new environment.
Choosing a school
Parents have the option to choose between public and private schools for their children. Education in private schools is only accessible to well-off families, and the cost can be quite significant. For example, in an international primary school, the annual tuition fee averages around $10,500.
Life in Israel
It is worth noting that life in Israel, despite the high costs, is justified by high salary levels and a favorable economic situation. Undoubtedly, the economic challenges the country faces cannot be ignored, but despite this, Israel's economy continues to grow, making the country attractive for investment.
Innovation in Israel
Israel ranks 15th out of 132 countries in the international innovation index, which indicates a high level of support for science and education.
Conclusions
The article discussed the main factors that make Israel an attractive country for immigration. This country has one of the most advanced economies in the world, which is well-developed technologically. As a result, highly skilled professionals can earn high salaries and live comfortably here.
The tax system in Israel also has its advantages for immigrants. New repatriates receive tax benefits, and many categories of professionals can deduct housing rental expenses or daily allowances from their taxable income.
However, it is also worth noting that the country has a high level of inflation, which reached its highest point in 2023 since 2008. Taxes are also progressive, meaning that the higher the income, the more taxes need to be paid to the treasury.
Despite this, Israel remains one of the most attractive countries for immigration due to its developed economy, high salaries, and tax benefits for new repatriates.
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