Cost of living in Israel

Cost of living in Israel

Israel is a country with a high cost of living that varies depending on the place of residence. In major cities, housing and food expenses are higher than in remote settlements. According to the Mercer index from 2014, Tel Aviv ranks among the top cities for cost of living, even surpassing Paris andMilan.

In 2012, Tel Aviv was recognized as the most expensive city in the Middle East.

Factors influencing the cost of living

The biggest expenses for residents of Israel are rent, especially in large cities like Tel Aviv. Salaries are lower than in other European countries, but tax benefits and other assistance programs offset this factor. High import taxes and excise duties increase the cost of goods, making international brands in Israel more expensive than in other countries.

National currency and income level

The national currency of Israel is the shekel, and the average salary in the country is about 9,500 shekels or 2,500 US dollars. When comparing the cost of living in Israel and Moscow, it is worth noting that it is 15% cheaper in the Russian capital than in Jerusalem.

Food prices and quality of life

Prices for groceries in Israel vary depending on whether they are purchased in a store or at a restaurant. Prices for fresh fruits and vegetables are quite affordable, especially considering the possibility of bargaining. The quality of food in Israel is higher than in many other countries, which is worth noting when comparing prices.

The average price of a basic grocery basket in Israel.

According to information from the international portal Numbeo, the prices are as follows: a liter of milk is priced at approximately 6.05 shekels ($1.6), fresh white bread costs around 6.87 shekels ($1.74 per loaf), a kilogram of rice is about 8.39 shekels ($2.2), a dozen eggs is around 12.79 shekels ($3.4), a kilogram of local cheese is approximately 45.5 shekels ($12), chicken fillet costs about 30.78 shekels ($8.13), and fruits like apples or oranges will cost 6-8.5 shekels per kilogram ($1.6-2.2). Vegetables, such as tomatoes and potatoes, are priced at approximately 4.3-5 shekels per kilogram ($1.15-1.3), while a 1.5-liter bottle of water is about 4.64 shekels ($1.23). A bottle of local wine will cost 40 shekels ($10.5), half a liter of local beer is 9.55 shekels ($2.5), and 0.33 liters of imported beer is 12.71 shekels ($3.4). A pack of Marlboro cigarettes costs around 32 shekels ($8.45).

Prices for lunch and dinner

Lunch at an inexpensive restaurant or fast food will cost around 45-50 shekels ($11.8-$13.2), while dinner for two at a mid-range restaurant is about 200 shekels ($53). In a café, a half-liter of local beer or 0.33 liters of imported beer costs 25-27 shekels ($6.6-$7.1).

Prices for clothing and entertainment

A pair of Levi's jeans costs about 340 shekels ($90), a summer dress from Zara or H&M about 212 shekels ($56), and men's Nike sneakers about 430 shekels ($113.5). A fitness club membership costs an average of 250 shekels a month ($66), an hour of tennis court rental on the weekend costs about 52 shekels ($13.7), and a movie ticket costs about 40 shekels ($10.5).

Prices for communications and entertainment

A minute of prepaid mobile traffic is priced at 0.36 shekels ($0.09), while an unlimited internet connection costs about 78.58 shekels per month ($20.75).

The cost of housing in Israel

The cost of housing in Israel varies significantly depending on the location. In recent years, property prices have risen considerably, leading to an increase in the share of rentals among local residents. Interest from foreign investors has also impacted the Israeli real estate market. Despite the rising prices for purchasing homes, rental rates have remained relatively stable.

Long-term rentals in Israel

Long-term rental prices for housing in Israel vary depending on the location. For example, in Tel Aviv, renting a one-bedroom apartment in the city center during the off-peak season averages around 4,500 shekels per month (about $1,188).

Prices for cars and fuel in Israel

Volkswagen Golf cars in Israel are sold for around 130,000 shekels, which is approximately $35,000. In Russia, however, the same car costs only $16,300. Fuel prices are constantly rising in Israel due to a huge 90% tax, making the average cost of a liter of gasoline 6.88 shekels (about $1.8).

Public transport in Israel

Many locals and tourists prefer to use public transportation in Israel to get around the country. The prices for intercity buses or trains depend on the distance and direction. A ticket within the city costs 6.9 shekels (about $1.8), while a monthly pass will cost around 250 shekels ($66).

Taxi and its cost

A costly taxi ride between cities can be an optimal option for a family or a large group. The fare for getting into a taxi is 12.6 shekels ($3.3), and each kilometer traveled will cost an additional 5 shekels ($1.3).

The level of healthcare in Israel

Healthcare in Israel is at a very high level, comparable to that of developed countries around the world, including the USA and most Western European countries. Doctors are highly qualified and speak English, making Israel one of the leading destinations for medical tourism.

Medical insurance and its financing

Funding for the Israeli health insurance system is provided through a health insurance tax, which is deducted from foreigners working in the country (ranging from 3% to 5.5% up to 16% of their salary). This tax is the primary source of funding for the healthcare system in Israel.

Article on the features of the budget in Israel

Food prices in Israel are relatively affordable if you eat at home, but quite high if you dine out. Fresh fruits and vegetables are inexpensive, and since haggling is common in Israel, buyers can expect significant discounts. According to information from January 2014, food prices in Israel were 19% higher than in any of the 34 OECD countries.

• Milk (1 L) – ILS 6.05 ($1.6)
• A loaf of fresh white bread – ILS 6.87 ($1.74)
• Rice (1 kg) – ILS 8.39 ($2.20)
• Eggs (12 pcs) – ILS 12.79 ($3.4)

It's important to know:A meal at an inexpensive restaurant or fast food establishment will cost around ILS 45-50 ($11.8-$13.2), while a three-course meal for two at a mid-range restaurant will cost about ILS 200 ($53).

Clothing, entertainment, communication

A pair of Levi's jeans costs ILS 340 ($90), a summer dress (ZARA, H&M) is ILS 212 ($56), and men's leather shoes or Nike sneakers will set you back ILS 430 ($113.5).

• The cost of a fitness club membership for one adult is about ILS 250 ($66) per month.
• Hourly rental of a tennis court on a weekend – ILS 52 ($13.7)

Rental and maintenance of real estate

Bills for municipal tariffs and taxes (Arnona) are sent to property owners every two months, and for an apartment with an area of 100 square meters, they can range from ILS 500 to ILS 2000 ($132-$528).

It's important to remember:The average utility bill is ILS 644 ($170), which includes payments for electricity and water supply, heating (gas), and garbage collection.