77 awesome things about Israel’s economy

In honor of Israel’s 77th birthday, we reflect on the things we appreciate about our economic and financial systems.

Yes, despite these hard times, VAT and overall tax increases, major economic challenges, and looming US tariffs, there is still so much good worth celebrating. Without a doubt, our incredible Israeli resilience and innovative spirit promises better times ahead in this miracle country that has been built in 77 short years. So here is my list of 77 awesome things about Israel’s economy:

Government & Economy
Despite everything we’ve faced in the past year, our economic foundation remains strong, a testament to Israeli ingenuity and determination.

1. A resilient economy continues to show growth despite the war.
2. Google’s acquisition of Wiz for $32 billion, proof that we continue to be a tech giant.
3. The shekel remains stable as a global currency.
4. The Sal Klita (Absorption Basket) currently provides financial support for new immigrants.
5. Free Ulpan programs help immigrants integrate linguistically and culturally.
6. Strong economic leadership from the Bank of Israel, resulting in economic stability.
7. Monthly child stipends from Bituach Leumi, the National Insurance system.
8. Improved digital government services that reduce bureaucracy.
9. Electricity reform now provides consumers with a choice of providers.
10. The introduction of a new category for small business owners, Esek Za’ir, helps reduce bureaucracy and paperwork.

Health Care
Our healthcare system is unique in that both services and innovations continue to be added, with more services available in other languages.

11. Universal healthcare system with minimal out-of-pocket costs.
12. Free hospital services.
13. An extensive list of affordable medication.
14. Birth grants (ma’anak leidah) that support new mothers.
15. Free dental care has been expanded to cover children under 18.
16. Paid maternity leave of 15 weeks (can be split between working spouses).
17. Healthcare services becoming more available in English.
18. World-class leader in fertility treatments at minimal cost.
19. Telemedicine initiatives that are expanding healthcare access.

Savings & Investments
I often tell my clients that Israel has developed some remarkably clever savings vehicles that many people, especially new olim, do not use fully! These programs help us build financial security while navigating Israel’s unique economic landscape. *Not all are suitable for Americans, so please ask your CPA.

20. Mandatory pension systems that ensure retirement security.
21. Tax-free Keren Hishtalmut savings that provide mid-term investment options.
22. Tax-advantaged investment plans, such as Kupot Gemel Lehashka’ah.
23. Government savings plans for children.

Banking & Finance

Israeli banking is now more digitally oriented, with a greater number of internet banks and apps than ever. Bank Leumi now has an English app! No need for long waits on the phone to reach a banker. They now respond via the bank’s internet chat.

24. Free, no-fee banking for students and soldiers.
25. Digital banking services facilitate easier financial management.
26. Open banking initiatives increase competition and improve service.
27. Mobile payment ecosystems, such as BIT and Paybox, reduce dependency on cash.
28. Fintech innovations are making financial services more accessible.

Employment & Business

I love seeing Israel’s business culture continue to evolve and thrive, even in challenging times. The entrepreneurial spirit here is contagious, and our employment landscape offers unique benefits you simply won’t find elsewhere.

29. Paid extended parental leave supports working families.
30. Paid medical leave during pregnancy complications.
31. Streamlined tax withholding system that simplifies tax compliance.
32. National observance of Jewish holidays provides a work-life balance.
33. Thriving startup ecosystem fuels robust investment networks.
34. The growth of remote work opportunities has expanded employment options.
35. Government incentives help businesses in peripheral areas.
36. Israel is enjoying a historically low unemployment rate of 2.7%.
37. The Startup Nation mindset has made it easier to start a business, providing greater networking opportunities and a growing economy.

Insurance & Benefits

While navigating Israel’s insurance landscape can sometimes feel complex, particularly for newcomers, the protections and benefits available here continue to expand.

38. Employer-provided meal benefits through programs such as 10bis, Wolt, and Cibus.
39. Strong consumer protections within insurance regulations.
40. Enhanced employee wellness programs are becoming standard benefits.
41. Ma’anak (grant) for those who served in the army or national service.
42. Tax benefits on money paid into life insurance.
43. Personal Accident Insurance is provided for all school-aged children.
44. Lower property purchase tax for new olim within the first seven years of living in Israel.
45. Employee benefits include free events, subsidized camps, and special discounts for employee families.

Communications & Technology

Israel’s technological prowess isn’t just about exporting innovations; it’s transforming our daily lives as citizens! The tech ecosystem here continues to enhance our quality of life while creating economic opportunities.

46. Competitive telecommunications market with affordable services.
47. Package deals for internet phone and cable TV.
48. Tech innovation zones that foster development in various regions.
49. Digital government services that reduce bureaucracy and paperwork.

Chesed (Kindness) & Community

What truly makes Israel’s economy special is not just financial metrics; it’s the deep commitment to community and mutual support that is woven into our society. During challenging times, this aspect of Israeli life becomes even more apparent and vital.

50. The extensive network of charity organizations that provide assistance to all populations.
51. Interest-free loan societies assist families in need of financial support.
52. Free financial counseling is provided by Meikimmi, Paamonim, Messila and other organizations.
53. Tax benefits for charitable contributions.
54. Community-based economic initiatives strengthen local economies.
55. Israel is the 5th-happiest country in the world

Education

The investment in Israel’s next generation continues to yield remarkable results.

56. Affordable education, including programs for those with disabilities.
57. World-class universities with competitive and affordable tuition.
58. Subsidized child care for working moms.
59. Extended day school options that support working parents.
60. Growing vocational training programs in high-demand fields.
61. Coding and technology education initiatives that begin in elementary schools.

Food & Shopping Culture

Israel’s vibrant food culture offers high quality, convenience, and value. From the many bustling shuks to neighborhood makolets (mini-markets), our food economy reflects the country’s diversity. 

62. Kosher food is widely available without significant price premiums.
63. Access to high-quality local produce at reasonable prices.
64. Affordable street food options like falafel, sabich, and shawarma.
65. Budget-friendly coffee shop chains like Cofix.
66. Competitively priced supermarket chains.
67. Seasonal holiday sales on relevant products.
68. Thriving second-hand markets that reduce waste and costs.

Transportation

Traveling around Israel is becoming increasingly easier with the addition of more options.

69. Free public transportation is now provided for those over age 67.
70. Express lanes and carpooling incentives to reduce congestion.
71. Free roadside assistance on major highways via *2120 and Yedidim.
72. Discounted annual road tax on electric vehicles.

Culture and Travel

Living in Israel offers such incredible opportunities to explore, experience, and connect with both our heritage and the country’s natural beauty! What I love most about our cultural landscape is how it combines accessibility with meaning, allowing families to enjoy enriching and affordable experiences. 

73. Unions and consumer groups often offer discounts on attractions such as museums, theaters, children’s activities, theme parks, and more.
74. The culture of engaging with the land through hikes and nature provides plenty of free or inexpensive entertainment for the whole family.
75. The National Parks membership makes day trips and vacations more affordable and enjoyable.
76. Beautiful free or low-fee beaches.
77. Subsidized entry to certain sites and attractions on holidays.

This list reflects Israel’s continued economic growth and innovation while maintaining the social safety nets and community support systems that make our economy unique. The resilience of Israel’s economy during these challenging times remains a testament to the nation’s strength and adaptability as we celebrate our 77th year of independence.

Yom HaAtztmaut Sameach!!