Like charity, aliyah and budgeting begin at home. Before actually making aliyah, review your bank and credit card statements for the past year. Divide your expenditures into two columns: one for the basic essentials, rent or mortgage, food, medicine, utilities, transportation, apparel and footwear; and the second for extras like vacations, gym, restaurants, and gifts. The first column total should give you a ballpark figure of the minimum you’ll need for the basics you’ve become accustomed to.
Why is almost everything more expensive in Israel? There are several reasons but high taxes and the fact that most consumer goods are imported are major factors.
Israel’s consumer markets resemble the European model. A value-added-tax (VAT) of 16 percent is either added to or included in every transaction and there are almost no exemptions.
Import tariffs ranging from 30 to 75 percent along with transportation and shipping expenses also add to wholesale and retail costs.
Israel’s population of less than 8 million cannot support large national discount chains such as the Walmarts of the world who can offer lower prices and force competitors to cut prices or lose business.
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