Arnona is Israel’s municipal property tax, and it is one of the first bills that surprises new Olim in their first apartment. Unlike most countries where property tax falls on the owner, in Israel the tenant pays arnona. If you are renting your first apartment in Israel as most new Olim are, arnona is your responsibility. The good news is that new Olim are entitled to a significant discount in their first year or two, but you have to apply for it, and there is a time limit on that application. This guide explains how arnona works, what the Oleh discount gives you, and how to claim it.
What Is Arnona?
Arnona (its full formal name is mas rekhush, or property tax) is a municipal charge paid by the occupier of a property. It is collected by the local municipality (iriyah) and used to fund local services: street cleaning, parks, local infrastructure, and municipal facilities. Every occupied property in Israel is subject to arnona. Apartments, shops, offices, and warehouses all pay, though the rates differ by property type and zone.
For residential tenants, arnona is calculated by multiplying the floor area of the apartment by a rate per square metre set by the municipality. That rate varies significantly between municipalities and even between zones within the same city. Central Tel Aviv has higher rates than peripheral Beersheba, and a commercial zone within any city has different rates from a residential zone. Municipalities are permitted to set their own arnona rates within limits set by the Ministry of Interior.
How Arnona Is Billed
Municipalities send arnona bills twice a year, covering six months each. You can pay in a lump sum or in instalments per billing period. Most municipalities now offer online payment, bank transfer, or direct debit. When you first register in a new apartment with the municipality, the arnona account is opened in your name and bills start arriving to your address or online account.
When you move into a rental apartment in Israel, it is your responsibility to notify the municipality that you are the new occupant. This registers you as the billable party and opens your arnona account. If you do not notify the municipality when you move in, you may receive bills addressed to the previous tenant or accumulate an unregistered debt. Go to the municipal office or their website within the first two weeks of moving in.
The New Oleh Arnona Discount
New Olim are entitled to a reduction in arnona for a limited period after Aliyah. The standard national discount is 70% off your arnona bill for the first 12 months from the date of Aliyah, followed by a 30% discount for a further 12 months, for 24 months of relief in total. Some municipalities offer more generous terms than the national minimum. A few offer a 90% discount in year one, and some extend the period of relief. It is worth asking your specific municipality what their terms are, since they sometimes exceed the national guidelines.
The discount applies to one residential property per Oleh household. You cannot claim it on a second apartment or on a non-residential property. The calculation is based on the arnona that would otherwise be due on your registered residence.
How to Apply for the Discount
The discount is not automatic. You must apply for it, and applications must generally be submitted within 90 days of Aliyah or within 90 days of moving into a new apartment if you move during the eligibility period. Missing this window can mean losing months of discount retroactively.
To apply, go to the arnona department (agaf arnona) of your local municipality with your Teudat Oleh, Teudat Zehut, and a copy of your lease agreement. Fill in the discount application form (baka’sha lehanacha be-arnona). The office will apply the discount to your account and issue corrected bills if any have already been sent at the full rate.
In some municipalities this can now be done online through the city’s digital services portal, though an in-person visit is still sometimes required to verify your Teudat Oleh. Check your municipality’s website before making the trip.
Other Arnona Discounts and Exemptions
Beyond the Oleh discount, Israeli municipalities offer arnona reductions for a range of other circumstances: single-parent households, Holocaust survivors, elderly residents on low incomes, people with disabilities, and recipients of social welfare payments. If your household qualifies for any of these categories, ask the municipal arnona office about all categories that might apply when you first register. Some discounts can be combined.
Students registered at Israeli universities sometimes receive an arnona exemption on their apartments as well. If you are studying at a university in Israel while also in your Oleh discount period, ask both the municipality and your university’s student welfare office about the interaction of these benefits.
What Happens When the Discount Ends
After the discount period expires, typically 24 months after Aliyah, you pay the full arnona rate for your apartment and municipality. Many Olim are caught off guard when their bill suddenly increases. Put a reminder in your calendar for the 22nd month of Aliyah so you are budgeting for the full arnona rate before it hits. As a rough guide, a 70 square metre apartment in a mid-tier neighbourhood in Tel Aviv might pay NIS 3,000 to 5,000 per year in arnona at full rates. In a city like Beer Sheva or Ashdod, the figure is closer to NIS 1,500 to 2,500.
Frequently Asked Questions
Who pays arnona in Israel, the landlord or the tenant?
In Israel, arnona is paid by the occupant of the property, not the owner. This is different from many other countries where property tax falls on the landlord. As a renting Oleh, arnona is your bill from the day you register as the occupant of an apartment. Your landlord is responsible for arnona on any period the property sits unoccupied. Lease agreements in Israel typically confirm this arrangement explicitly.
How much is the Oleh arnona discount?
The national minimum discount is 70% off your arnona bill for the first 12 months from Aliyah, and 30% for the following 12 months, covering up to 24 months in total. Some municipalities offer more generous terms. The discount applies to one residence per Oleh household. You must apply at the municipal arnona office with your Teudat Oleh and lease agreement, and the application must typically be submitted within 90 days of Aliyah or of moving into the apartment.
Do I need to do anything to register for arnona when I move in?
Yes. You need to notify your local municipality that you are the new occupant of the apartment. This opens your arnona account in your name. Do this within the first two weeks of moving in. At the same time, apply for the Oleh discount by bringing your Teudat Oleh and lease agreement to the arnona department. In some cities this can be done online. In others, an in-person visit is required.
What if I miss the 90-day window to apply for the Oleh discount?
Some municipalities will allow a late application in specific circumstances, but there is no guarantee. The discount is generally not applied retroactively for periods before the application date. If you move in and wait several months before applying, you may lose those months of discount permanently. Apply as soon as possible after registering in your apartment, ideally in the same week.
Is arnona the same in every Israeli city?
No. Arnona rates are set by each municipality and vary considerably. Tel Aviv, Herzliya, and Ra’anana have higher rates than peripheral cities like Beer Sheva, Dimona, or Kiryat Shmona. Within any given city, rates also differ by zone, with central and commercial areas typically higher than residential or outlying areas. When budgeting for an apartment, ask your prospective landlord what the current arnona bill is, or ask the municipality’s arnona office directly.
If I move apartments during my discount period, do I keep the discount?
Yes, but you need to re-apply at the new municipality if you move to a different city, or notify your existing municipality of your new address if you stay in the same city. The discount follows your Aliyah date, not the specific apartment. If you move to a different city, close your arnona account at the old municipality and open a new one at the new municipality, presenting your Teudat Oleh to restart the discount application there.