The pre-Aliyah financial checklist

Last Updated on February 6, 2024

The information contained in this article is for general educational purposes and should never be viewed as specific investment, tax, or legal advice.

Getting ready to move to Israel can be a daunting task. This list will focus specifically on financial tasks that are easier to accomplish before you move to Israel. It will be organized so that the simpler tasks are at the top so you can start making progress right away:

(This list is based on the experiences of US citizens. Some of the content may not be relevant or accurate for Olim from other countries.)

Set up Social Security and ID.me accounts

Many people living in Israel have found it very difficult to set up a Social Security account, an ID.me account (used by the IRS) and the IRS2Go App from Israel. Some of these services require you to be actively connected to a US cellular network in order to open an account. Having these accounts open can prove valuable regardless of your age and tax status. The US government often ignores the impact new tax laws will have on expats, and many of the online systems needed by expats can’t be easily accessed from outside the US. Having these accounts open can prove useful as it did recently when many Americans living in Israel decided to opt out of advanced payments for the expanded child tax credit.

In addition, many Olim who are receiving Social Security benefits prefer to do so directly to their Israeli bank account in shekels. This is obviously more convenient for some and the exchange rate is said to be very fair. While this is best accomplished after you make Aliyah, it is good to know about this option in advance.

Once you move to Israel and open an Israeli bank account you can apply for this by filling out this application and mailing it into the Jerusalem embassy. More information can be found here and here. Best of all, due to the US-Israel tax treaty, Social Security is generally exempt from both US and Israeli taxation for someone living in Israel.

Review your credit cards

Reducing the amount of credit and debit cards you own is a good way to simplify your finances prior to making Aliyah. You will likely want to keep some of your US credit cards after Aliyah and get rid of others. There are many credit cards which are difficult to apply for from outside the United States and it is worth reviewing your options as part of your Aliyah planning process.

Here is our list of some of the best US credit and debit cards to keep after Aliyah. Keeping at least one US credit card account open is essential if there is any possibility that you will need to open a new line of credit or apply for a loan in the United States in the future.

Set up US based peer-to-peer payment apps

Apps like Venmo, Apple Cash and Zelle may still come in handy after you make aliyah but some are much more difficult to set up once you are no longer in the country.

Start building your budget

Every successful Aliyah journey requires setting proper expectations. How much am are you going to spend after Aliya? What Aliyah expenses should you be planning for ahead of time. To help answer these questions we partnered with Nefesh B’Nefesh to build out the The Oleh Budgeting Calculator. After answering a few simple questions, the calculator will produce a budget estimate for you. 

Begin saving in shekels

When you arrive in Israel it is very likely that the majority of your daily expenses will be in shekels. Yet, many Olim looking to put aside cash savings to help prepare for the added expenses of the big move do so in dollars (or other local currency). This approach can lead to a significant increase in your exchange rate risk as you will be forced to convert currency based on whatever the exchange rate is on the day you arrive and begin incurring expenses in shekels. Of course the exchange rate can rise in your favor but it can also go the other direction and make your immediate expenses cost a lot more in dollar terms.

Thankfully, starting to save in shekels is easier than ever and doesn’t require you to fly to Israel or convince an Israeli bank to open an account for you. We have outlined how to use Revolut and Interactive Brokers to start saving in shekels and posted a full article comparing the different options for exchanging currency. Use our calculator to understand which option is best for you:

Important: If you decide to open a Revolut account, make sure you do so before making Aliyah. Revolut will not open an account for anyone who doesn’t have an address outside of Israel. Maintaining an account once open can be done completely free from anywhere.

Evaluate your bank and brokerage accounts

As the stories pile up about banks and brokerages locking expats out of their accounts, you should ask yourself if the financial institutions you are doing business with have a long track record of working with Americans living abroad or not. There are many good reasons to maintain US bank and brokerage accounts after Aliyah and there are many institutions that have no problem with you moving abroad. But, there is a real risk in maintaining accounts with institutions who are regularly freezing accounts of customers that they can’t verify are currently residing in the United States. In addition, some banks require a you to be physically present in order to wire large amounts of money out of your account.

The fact is that many financial institutions have decided that it is not worth the liability and extra regulation required for offering services to Americans living abroad. In the event that you plan on regularly commuting back to the states or you will be maintaining a US address this may be less of a risk. Regardless, keeping the bulk of your savings with institutions less likely to shut you out makes a lot of sense.

Read our full articles on how to maintain your US bank accounts and US brokerages from Israel.

Start breaking your teeth

Building confidence speaking Hebrew can go a long way towards building financial success in Israel. While your best Hebrew learning is likely to come here in Israel, getting started before you make the move can go a long way. Negotiating confidently in Hebrew is one of the quickest ways to save money in Israel. One of my personal favorite resources for potential Olim is Ulpan La-Inyan’s free Daily Dose of Hebrew. If you want to really take your Hebrew level up a notch, consider private lessons or a group course over Zoom offered by many of the different Ulpanim.

Port your US number to Google Voice

Having a “real” US number after you move to Israel can be very useful. Many banks and US based services require a US number for two-factor authentication. While some will accept virtual numbers created by apps like TextMe and TextNow, others won’t. Besides the obvious advantages of being able to keep your personal number after Aliyah, having a phone number that originated from a US mobile carrier can prove valuable. This step should only be taken once you are very close to your Aliyah date and are ready to cancel your mobile plan. Follow google’s instructions carefully or use this step-by-step guide for more information on the steps involved.

Review existing insurance policies

Before making Aliyah, you will want to review all insurances policies and determine if they are worth maintaining after you move to Israel. Many policies have specific riders which reduce the benefits for individuals living anywhere outside the US or in specific countries. Check your policies such as life insurance or long-term care insurance carefully.

Structure your business or employment properly

If you will be making Aliyah while keeping your US based job or an online business there will be unique tax implications you should plan for in advance. Keep in mind that regardless of where the business or company you work for is based, you will likely be subject to Israeli taxes on work performed in Israel, even in the first 10 years after Aliyah. Where your “tuches” is seated when performing the work is a significant factor in determining which country has the right to tax your income first.

Speaking to an Israeli accountant familiar with US business structures or remote work before you arrive can be beneficial. Here is an in-depth article on this to help you start your research.

Power of attorney

If you will own significant assets in the United States after you make Aliyah, you may want to consider appointing an attorney-in-fact (also called an “agent”). This is especially important to research if you own physical property. You could empower this “agent” to make financial decisions on your behalf and manage the property for you. Even for Olim who frequently commute to the States, pandemic travel restrictions in Israel have been a good reminder of the need to plan in advance.

Selling your home

If you plan on selling your home (principal residence) in the US after making Aliyah, make sure you have a proper plan in place for managing that process remotely. Assuming you lived in this home for at least two years prior to making Aliyah, you generally have up to 3 years from the time you move out to take advantage of significant savings on US capital gains tax when you sell.

Move to Florida 

This one is only partially a joke. There are many reasons any expat would want to maintain a US address and doing so in an income tax-free state like Florida is generally a less risky approach. Establishing domicile in a new State isn’t as easily accomplished after you have left the country. Cutting tax ties with “sticky” States like New York and California can be especially difficult. If you are seriously considering this make sure you go over all the details with a tax expert.

Do a complete review of your financial plan

Moving to Israel is a major life event and your financial plan should be updated to reflect that reality. Ask yourself if you financial goals are on track and how moving to Israel will affect them. Consider how your budget, expenses, income, cash flow, investments, risk management, and taxes may change when you move to Israel. Evaluate how living in a new currency will affect your finances and consider different approaches for managing your exchange rate risk.

For more of the best pre-Aliyah tips, check out the other pre-aliyah checklists linked in our master list.