Description

Olim pay a reduced tax rate on the purchase of a new car in Israel or the import of a car from abroad. In order to be eligible for the tax reduction, Olim must hold a valid foreign driver’s license that was issued at least three months prior to the date of Aliyah. A valid Israeli driver’s license is also required*. The benefit is valid only for a new car or “Passport to Passport” purchase. Importing a car is a detailed process that should only be pursued following thorough research regarding the costs and benefits.

*Olim can now purchase a vehicle without an Israeli driver’s license during their first year after Aliyah, as long as they commit to converting their license before the first year is up.

Timetable

In order to use this benefit the car must be released to the Oleh, and be in the possession of the Oleh, within 3 years of their Aliyah date.  Extensions can be granted to those who serve in the IDF, study at a recognized university, or travel overseas for more than six consecutive months during the first three years of Aliyah.
See: Buying a Car in Israel and Importing a Car