The Motor Vehicle Division of Misrad Hatachbura (Ministry of Transportation) permits Olim to import motor vehicles for personal use, in accordance with their regulations and procedures.
Importing a vehicle is complex, however by doing the necessary research and learning the rules and limitations involved in the process, it may be worthwhile. Before deciding on shipping a car, please email [email protected] to discuss what is involved in your particular situation.
Important Note: NBN is providing information on the procedure of importing a vehicle as a courtesy. NBN does not encourage or discourage those who wish to import their car and does not assume responsibility for the information provided or the costs which may be involved. We strongly recommend that you conduct your own research regarding the costs and benefits involved in this procedure.
For information regarding the Driver’s License Conversion process, please click here.
- Misrad Hatachbura: Licensing and standardization
- Meches (Customs Authority): Customs taxes and VAT
- Shipping Companies: Shipment of the vehicle from overseas to Israel
- Customs Agent: Releasing the vehicle from Meches
- Insurance Agencies: Insuring the vehicle for marine transport
Two Ways to Import
1. Using a vehicle importer
- Pros: Saves time and you do not need to be involved in the actual procedure.
- Cons: High cost
2. On your own
- Pros: Less expensive – your costs will be the shipment, insurance and taxes
- Cons: Bureaucratic challenge of dealing with all the government offices involved
OLEH TAX RATES ON IMPORTED CARS
Olim are entitled to import a car at a reduced tax rate of 50%, as opposed to the 92% that a veteran Israeli pays. In addition to the car tax, one must pay VAT on the final value of the car. The calculation is done as follows:
Car tax = [vehicle value=”” *50%=””][/vehicle]
VAT = [vehicle value=”” +=”” car=”” tax)=””][/vehicle] *17%
For example: If the car’s value is estimated at $5,000, one would have to pay $2,500 as car tax and an additional 17% of $7,500 (car value + car tax) which comes out to $1,350. The overall taxes on the car would be $3,850, which is approximately 75% of the car’s value.
Tax Valuation (Relative to the Vehicle Value):
The valuation is based on the vehicle’s value in the global market, as determined by Meches. The value of the vehicle depreciates based on the following chart:
||Monthly Depreciation %
Please note: Every vehicle which is imported to Israel is surveyed by an appraiser from Meches. If the appraiser judges the declared price to be unreasonable, they will notify the importer in writing. The importer, together with the Oleh, will have the option to appeal this decision, also in writing. This process can take several weeks and you may not have access to the vehicle during that time.
Terms & Conditions of the Customs Benefit:
- The benefit is given to Olim Chadashim, Ezrachim Olim, Ktinim Chozrim and former A-1 visa holders who are eligible for customs benefits.
- The time frame for using this benefit is three years from the date of Aliyah. Extensions are granted to those who serve in the IDF during these three years, study at a recognized university in Israel or travel overseas for more than six consecutive months.
- This benefit includes a motorcycle, passenger car = a vehicle designed for passengers transportation of class M1 or, M2 type, as defined in Article 271A of the Israeli Traffic Regulations, of weight not exceeding 3500 kg.
- Vehicle and import documents must all be under the Oleh’s name.
- The imported vehicle will be for personal use of the Oleh and their spouse. This limitation will remain in effect for 4 years from the date of import. After the 4 years pass, the restriction will be lifted automatically. The restriction must be removed in order to transfer ownership on the car or in order to allow others to drive. For more information or inquiries, email the Customs Authority directly: [email protected].
In order to clear the vehicle through Meches, you will need:
- All the documents required in order to use your Oleh benefits: Teudat Oleh or Teudat Zakaut, Teudat Zehut, foreign passport with Aliyah visa and Israeli passport (if applicable).
- A valid Israeli driver’s license (see note below) and a valid foreign driver’s license. Note: An Oleh can convert a foreign driver’s license to an Israeli license. However, in order for the conversion process to work, the foreign license must have been valid for at least three months prior to the Oleh’s day of Aliyah. In order to be eligible for the benefit you must have converted a foreign license to an Israeli one.
- The original purchase invoice of the vehicle which includes the details of the vehicle’s manufacturer and model, year of manufacture, engine number, chassis number, engine capacity and details of any additional installations in the vehicle.
- US vehicle registration.
- Declaration for Meches: http://taxes.gov.il/TaxesFormsList/meches21.pdf
- A clear title to the vehicle.
- Delivery order by the shipper.
- All invoices from the shipping and insurance companies.
- Confirmation that the vehicle has passed local safety requirements given at the time of the vehicle’s release from Meches.
- For US vehicles – CARFAX report and Certificate of Title.
- An affidavit that states the car has not been in an accident and did not sustain damage to its shield.
- Note: The Customs Authority may require this affidavit.
- Note: Meches, by way of the customs agent, reserves the right to request any additional documentation as they see fit.
- Note: You can now purchase a vehicle without an Israeli driver’s license during your first year after Aliyah, as long as you commit to converting your license before the first year is up. If you do NOT convert your license within this time-frame you will be required to pay back the reduced taxes. You will be required to present your Israeli license to the customs authority.
The standardization check is meant to check the identity of the vehicle and match it to the documents provided, as well as to ensure that it fits Israeli standards.
After the Personal Imports Division of Misrad Hatachbura is informed of the vehicle’s release, you will receive an invitation for the standardization check. You should receive the invitation within two weeks of the vehicle’s arrival; however, the check may take up to two months. Please be prepared that you may not have your car for this period. If you do not receive an invitation within two weeks please contact the Vehicle Import Division by fax at 03-5618260 or call Misrad Hatachbura’s main number: *5678.
The check is done at the Misrad Hatachbura offices in Haifa and Holon only.
You will need to provide the following documents:
- Letter of invitation
- Teudat Zehut, driver’s license and temporary vehicle registration
- Letter of release from Meches
- Receipt confirming that the standardization check fee was paid, signed by a bank
In order to drive the vehicle prior to completing the standardization, you will need to issue a temporary vehicle registration at Misrad Hatachbura. Please make sure to bring your driver’s license, letter of release from Meches and your Teudat Zehut. The temporary registration is usually valid for three months.
Note: According to the Ministry of Transportation, it is forbidden to import a vehicle to Israel that was listed as “salvaged” or “total loss.”
For additional information, please contact the Personal Imports Division at Meches: [email protected]