This guide was written prior to the 2026 conflict between the US, Israel and Iran and related hostilities. Non-essential travel to Israel is not advisable due to the risks related to military action in the broader Middle East area. Please consult official government travel advisories and exercise extreme caution before considering travel to the region.
Managing banking, money and taxes in Israel is generally straightforward for expats, as the country has a highly developed, reliable banking system that is both accessible and internationally connected.
Money in Israel
The official currency of Israel is the Israeli New Shekel, abbreviated as ILS but also known locally as NIS. The shekel is subdivided into 100 agorot.
- Notes: ILS 20, ILS 50, ILS 100, and ILS 200
- Coins: ILS 1, ILS 2, ILS 5 and ILS 10, along with 10 and 50 agorot
Banking in Israel
The biggest commercial banks in Israel are Bank Hapoalim, Bank Leumi, Israel Discount Bank and Mizrahi Tefahot Bank. All major banks have branches throughout the country. Urban branches usually offer more extensive services, whereas rural branches may have limited services and hours of operation. Most banks offer telephone or internet banking, with many of these services available in English.
Banks are generally open on Sundays to Thursdays from 8.30am to around 1.30pm. On Mondays and Wednesdays, banks typically also operate from 4pm to 6.30pm. All banks are closed on Saturday for Shabbat. Hours vary by branch, so it’s worth checking before you visit.
Money transfers in all forms (cheques, cash, and money orders) are accepted in most banks in Israel. As an alternative to opening a bank account in Israel, clients working or living in Israel have the option to open an international bank account before moving. Banks such as HSBC, BNP, and Citibank operate in the country.
Opening a bank account
Expat workers can open a bank account in Israel. The process is usually fairly straightforward and typically requires a passport or residence permit. Preparing recent bank statements from other accounts can help expedite things. It’s also possible to open a bank account with the Postal Bank (any post office) without making an initial deposit.
Credit cards and ATMs
Expats applying for a credit card in Israel will need to make an initial deposit, the amount of which will be specified by the bank. International credit cards are also widely accepted in Israel. Israeli credit cards are available for purchases in Israel in local currency only, while international credit cards can be used worldwide. ATMs in Israel’s urban centres are widespread and accessible 24 hours a day, but they are less common in rural areas.
Useful links
Taxes in Israel
There are rather high tax rates in Israel, and all sources of income for an Israeli resident are taxed in the country. Income tax in Israel is calculated on a sliding scale from 10 to 47 percent, with a three percent surtax on the highest earners, bringing the effective top rate to 50 percent.
Expats living in Israel for fewer than 183 days in a tax year are only liable for tax on their locally earned income. Those in Israel for 183 days or more in a tax year are considered tax residents and will be liable to pay tax on their worldwide income. Given how complex expat tax situations can be, it is strongly advisable to consult a specialist expat tax practitioner.
Social security and medical insurance
Each employee in Israel must pay social security and health insurance in the form of a salary deduction based on their individual income. Both the employee and the employer are required to pay Social Security.
A non-resident employee in Israel must retain private health insurance for their entire length of stay. Non-residents are entitled to limited services and social security benefits. The social security rate deducted from their salary every month will be the minimum applicable fee.