Financial Guides
Comprehensive and up-to-date guides for smart financial management in Israel
Here you will find all the information needed for proper financial management in Israel - from taxes to investments
Income Tax Guide in Israel 2025
Everything about tax brackets, credits and refunds
Income Tax Brackets 2025
- Up to ₪7,010: 10% tax
- ₪7,011-10,060: 14% tax
- ₪10,061-16,130: 20% tax
- ₪16,131-21,200: 31% tax
- ₪21,201-42,390: 35% tax
- Over ₪42,390: 47% tax
Main Tax Credits
- Personal credit points: 2.25 points (₪252/month)
- Child credit: 1 point per child (₪112/month)
- Working woman credit: 0.5 points (₪56/month)
- Discharged soldier credit: First 3 years
How to File Tax Return?
- Access Israel Tax Authority website or app
- Fill form 1301 or submit digitally
- Attach receipts and expense proofs
- Refund arrives within 30-60 days
Mortgage Guide in Israel
Types of mortgages, terms and saving tips
Main Mortgage Types
- Fixed Rate Mortgage: Rate stays the same throughout loan period
- Variable Rate Mortgage: Rate changes according to Bank of Israel rate
- Index-Linked Mortgage: Payments linked to consumer price index
- Mixed Mortgage: Combination of several tracks
Mortgage Approval Requirements
- Maximum payment ratio: 40% of income
- Minimum equity: 25-30% of apartment price
- Minimum employment period: 6-12 months
- Good credit rating
Money-Saving Tips
- Compare between different banks
- Try to negotiate fees
- Consider a mortgage consultant
- Consider early repayment when you have extra money
Smart Retirement Planning
How to plan a secure retirement in Israel
Pension Products in Israel
- National Insurance: Basic old-age pension from age 67 (women) / 62-67 (men)
- Pension Fund: Mandatory savings of 6% from employer + 6% from employee
- Provident Fund: Additional pension savings with tax benefits
- Life Insurance Policies: Combined savings and insurance product
How Much Money for Retirement?
- Rule of thumb: 70% of current income
- Couple with ₪20,000 income: needs ₪14,000 in retirement
- Start saving as early as possible
- Consider inflation and index increases
Smart Strategies
- Maximize provident fund deposits (up to ₪83,000/year)
- Use tax credit on deposits
- Choose funds with low fees
- Diversify investments according to age and risk
Investing for Beginners in Israel
Guide to investment products in Israel
Main Investment Products
- Bank Deposits: Safe investment with low interest
- Bonds: Relatively safe investment with fixed interest
- Stocks: Investment in companies with high growth potential
- Mutual Funds: Diversified investment with professional management
- ETFs: Passive investment with low fees
Basic Investment Principles
- Diversification: Dont put all your money in one place
- Long-term investing: 5+ years minimum
- Gradual investing: Fixed amount each month
- Financial education: Learn before you invest
Tips for Beginners
- Start with mutual funds or ETFs
- Invest only money you wont need for 5 years
- Dont look for quick profits
- Work with a professional investment advisor
Life and Health Insurance
How to choose suitable insurance
Types of Life Insurance
- Term Life Insurance: Cheap, covers only death cases
- Whole Life Insurance: More expensive, combines savings and insurance
- Disability Insurance: Covers loss of work capacity
- Critical Illness Insurance: One-time payment in case of illness
How Much Life Insurance Do You Need?
- Rule of thumb: 8-10 times annual income
- Couple with 2 children and ₪240,000 income: ₪2-2.4 million insurance
- Consider existing and future expenses
- Update amounts every few years
Supplementary Health Insurance
- Basic Health Insurance: Mandatory basic insurance through HMOs
- Supplementary Insurance: Additional coverage for private treatments
- Dental Insurance: Coverage for expensive dental treatments
- Travel Insurance: Mandatory for international travel
Employee Rights in Israel 2025
All social rights in Israel
Basic Rights
- Minimum wage: ₪5,572 gross per month (full-time)
- Working hours: Maximum 43 hours per week, 8.6 hours per day
- Overtime: 25% extra for hours 9-10, 50% beyond that
- Day of rest: 24 consecutive hours per week
Vacation and Sick Days
- Annual vacation: 14-28 days according to seniority
- Sick days: 18 days per year, accumulates up to 90 days
- Holiday days: 9 official holidays per year
- Maternity leave: 15 weeks for mothers, 7 days for fathers
Financial Rights
- Severance pay: One months salary per year of work
- Recuperation pay: 5 days salary per year
- Holiday bonuses: 8.33% of salary for Passover and New Year
- Pension funds: 6% from employer + 6% from employee