50% Meches – מכס – Customs Tax, on all vehicles + 17% VAT (Value Added Tax). Sample calculation:
Sample calculation:
Find a car dealer and visit their dealership to choose the vehicle you want.
Negotiate with the dealer directly to potentially receive additional discounts, free upgrades, or extras.
Prepare the following documents to present to the dealer:
The car dealer will send all the required documentation to Meches and within 10 days to three weeks, your car should be released to you with the reduced tax benefit.
Note: During your first year after Aliyah, you can purchase a vehicle without an Israeli driver’s license, but you must commit to converting your license within that year. Failure to convert your license within the first year will require you to pay back the reduced taxes. After converting it, you must present your Israeli license to Meches as proof.
Olim buying a new hybrid or electric car do not receive the Olim discount, as the tax rate for these cars is already lower than the Olim benefit tax rate.
When buying a new car with Zechuyot, there is a restriction on the car which allows only the purchaser and his/her spouse to drive the vehicle for 4 years from the purchase date. Olim who want to sell their car within four years of purchase without incurring penalties can do so by selling it to another Oleh who still has their Zechuyot to purchase a car with reduced taxes.This is called selling or buying a car “Passport to Passport”.
The seller and buyer must visit the local office of Meches to determine the car’s final value and any outstanding taxes owed.
Note: When purchasing a second-hand car privately, you cannot use your Oleh benefits. However, you can still use your benefits to purchase an additional new car or a passport-to-passport car within three years of Aliyah. The buyer must present a valid Israeli driver’s license and their Teudat Oleh. A new four-year restriction on selling the car will begin from the day it is listed under the buyer’s name.
If you buy a car without your Zechuyot, you need to go with the seller and the Rishyon Rechev – רשיון רכב – Car registration certificate, to any Snif Doar – סניף דואר – Post Office branch, and pay 235 NIS or to your Eizor Ishi – אזור אישי – personal profile on the Misrad Hatachbura website, and pay 222 NIS to transfer ownership. Sometimes the seller may split the fee with you.
For a general overview of Zechuyot for Olim, click here.