Kef International — Importing a car to Israel as an Oleh or returning resident
Source: https://kefintl.com/how-to-import-a-car-to-israel-stress-free · 2026
Why Import a Car to Israel?
- Save money on a used car: Israeli customs uses cumulative depreciation values similar to those abroad (~20% first year, ~30% second year, ~5% per year following). An Oleh saves approximately 40% by bringing a 3–4 year old (40% depreciated) car compared with buying new with rights, and ~53% compared with an Israeli buying new.
- Bring a car you already own: Benefits include familiarity for your family and additional savings by not needing a new purchase.
- Availability: Some desirable models (e.g., vans) are simply not sold in Israel. Hoping to buy from another Oleh is unlikely, as that other Oleh will not have rights for an additional vehicle.
Eligibility by Category
Olim Chadashim (New Immigrants)
- Have the right to bring one vehicle (car or motorcycle) from any country within three years of Aliyah.
- The vehicle is not limited by age but must have all required safety features.
- Reduced customs tax rate of approximately 77–80% (vs. standard 127–144%).
- No additional reduction for hybrid cars (the reduced rate is already a fixed benefit).
Returning Residents
- Must have been abroad for more than two years.
- Can import a vehicle that is up to 2 years old within 9 months of their return.
- No tax reduction, though the taxable value may be reduced by depreciation.
- Usually requires a Bank Guarantee (~30% of the car’s value).
Students
- Can import a car tax-free as long as they are full-time students at an institute of higher learning (Yeshiva, College, or University).
- Requires a Bank Guarantee.
Tourist/Student Visa Holders
- May bring a car tax-free, provided they take the vehicle (and themselves) out of the country periodically (usually every 6–12 months, depending on the visa).
- Requires a Bank Guarantee.
Understanding Taxes and Depreciation
- Taxes are calculated based on the vehicle’s value at origin + shipping costs − depreciation.
- Depreciation scale: ~20% for the first year, ~10% per year following (up to a maximum of 80% after 10 years).
- Important: A vehicle is treated separately from household goods and does not count as one of your allotted tax-free shipments.
Technical Requirements
- ESP Stabilization System: Required on all imports (became standard on most models after 2001).
- Service & Parts Letter: You must obtain a letter from a local commercial importer or a qualified Israeli garage willing to provide service and parts for your specific model.
- Driver’s License: You must hold a valid Israeli license (Olim have 1 year to convert their foreign license) and must have possessed a valid foreign license for at least 3 years (or 1 year for certain conversion tracks).
- Metric Speedometer: Required by the Ministry of Transport.
Official Resources
- Vehicle Import Regulations (Ministry of Transport): https://www.gov.il/en/service/application-for-vehicles-personal-import
- Olim Tax Rights (Israel Tax Authority): https://www.gov.il/en/departments/guides/guide-for-immigrants-and-foreign-residents?chapterIndex=4
- Depreciation & Valuation Guide: https://www.gov.il/en/departments/guides/personal_import_of_vehicles_guide
Key Practical Tips
- Timing is critical: Delays at customs are expensive — have all documents ready well in advance.
- The Ministry of Transport requires an import license before the car arrives.
- A specialist shipping company (e.g., Kef International) can manage bureaucracy, coordinate with the Ministry of Transport, and handle ocean freight to avoid costly mistakes at the port.