How Expensive Is It To Live In Israel?

Tel Aviv Picture

Israel is often perceived as an expensive country to live in, but the cost of living can vary significantly depending on where you live. In this guide, we’ll outline the average cost of basic necessities such as housing, food, transportation, and more so that you can budget accordingly while living in Israel.

Cost of Housing in Israel

The cost of housing in Israel is among the highest in the world when compared to other developed countries. Rent for a one-bedroom apartment in Jerusalem costs around $1,800 per month, while a two-bedroom apartment in Tel Aviv costs at least $2,700. Rental prices can be even higher in affluent areas like Ra’anana or Herzliya. Your budget will determine where you can live since real estate prices depend on many factors such as location and amenities offered.

Cost of Food in Israel

Food prices in Israel are generally considered to be lower than those in other developed countries. The average cost for basic goods like vegetables, fruits, dairy goods, meat products and frozen goods ranges from 20-40% less than the European average. In addition, supermarkets often offer discounts and promotions, so it is possible to find even better deals if you shop around.

Cost of Transportation in Israel.

Public transportation in Israel is inexpensive and reliable, making it a great way to get around the country. There is an extensive bus network, and tickets can be purchased from self-service terminals at most stations as well as online. Taxis are also available in many cities and are a good option if you’re not on a tight budget. The cost of taxi rides depend on distance, but fees typically range from 5-15 NIS per kilometer.

Miscellaneous Costs and taxes in Israel

Other costs and taxes in Israel vary significantly depending on where you live and what services you use. For example, the cost of electricity is relatively low, but water bills can be quite expensive. VAT (value-added tax) is 17%, which is standard for most products and services. There are also property taxes that vary depending on your residence and a television licensing fee of approximately NIS 365 per year. Finally, there’s insurance to consider, such as health insurance, car insurance, and home insurance which will add to your overall costs.

Comparison to Other Countries’ Living Expenses

While living in Israel may seem expensive, keep in mind that it’s comparative to other countries. For instance, the cost of living in the UK is quite similar. Food, clothing and transportation are comparable in price or cheaper than comparable goods in the US and Europe. When it comes to housing costs, Israeli cities such as Tel Aviv often have higher rent prices than their counterparts in London and other European cities. Ultimately, when compared to most developed countries, Israeli expenses are fairly reasonable while providing a unique experience that only Israel can offer.

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How Expensive Is It To Live In Israel?