Moving to a new country can be an overwhelming experience, especially when it comes to finances. We know from experience ourselves, as almost every one of our employees from Olim Paveway is an Oleh.
One of the most important things to consider is how to send money to Israel from abroad. For those who are planning to make Aliyah and move to Israel, it’s crucial to know how to transfer money to Israel from their home country. This is true whether you’re transferring savings to open an Israeli bank account, funding the cost of living in Israel during your first months, or eventually making a large wire transfer to Israel to buy property in Israel.
Sending money to Israel can be confusing, with various options available — banks, online money transfer platforms, or money transfer agents. However, it’s essential to choose the right method that suits your needs and budget. This article guides Olim on how to send money to Israel from abroad, covering the different methods available, their advantages and disadvantages, and the factors to consider when choosing the right option.
Whether you’re moving to Israel to start a new life or to fulfill a lifelong dream, sending money to Israel is a crucial step in the process. With the right information and guidance, you can make the transfer money to Israel process more manageable and avoid any unnecessary stress.
Why the Exchange Rate Matters More Than the Fee
Most Olim focus on transfer fees when sending money to Israel, but the exchange rate spread is where the real money is lost. When you wire transfer to Israel $100,000 USD to NIS, a 1% difference in the rate equals NIS 3,500–4,000. Banks typically add a 3–6% markup on the exchange rate — on top of any fees. Currency specialists (see below) typically offer spreads of 0.5–1%. On a large transfer money to Israel transaction for buying an apartment, that difference can easily run NIS 20,000–50,000. Always compare the total cost — fee plus rate — not just the headline fee.
Advantages of Sending Money to Israel
- Low Commission: Compared to many other countries, sending money to Israel is relatively inexpensive. Banks and money transfer agents charge lower commission fees than in some markets.
- Easy Regulation: The Israeli government has made it straightforward to transfer money to Israel. There are no restrictions on the amount of money that can be transferred, and Israeli banks and money transfer agents are regulated, ensuring that your money is safe and secure.
- Quick and Convenient: Most banks and money transfer agents offer same-day or next-day wire transfers to Israel, making it easy to send money to Israel when needed.
- Reliable: Israel has a stable and reliable banking system, making it a safe destination for your money when you transfer money to Israel.
Methods for Sending Money to Israel
- Currency transfer specialists (recommended for large transfers): Services like Wise (formerly TransferWise), OFX, and Clear Currency offer significantly better exchange rates than banks and are the standard choice among experienced Olim for large transfers to Israel — property purchases, pension transfers, or moving savings. For a NIS 2–3 million apartment purchase, using a specialist rather than your bank when you wire transfer to Israel can save NIS 20,000–50,000.
- Online money transfer platforms: PayPal, Wise, and WorldRemit offer lower fees and better exchange rates compared to traditional banks for smaller amounts when sending money to Israel. They may have limits on transfer sizes.
- Bank transfers: The most familiar option but often the most expensive way to transfer money to Israel. US banks typically add a 3–6% markup onto exchange rates on top of wire fees. Useful for routine transfers once you have an Israeli bank account established.
- Money Transfer Agents: Western Union or MoneyGram are quick and convenient for sending money to Israel and allow the recipient to access funds without a bank account. Rates are typically less favorable than specialists.
- Cash pickup and mobile wallets: Useful for urgent smaller wire transfers to Israel where the recipient needs to access funds immediately.
It’s important to compare the different methods and fees involved before choosing the right option for sending money to Israel. Additionally, make sure to check the legal and regulatory requirements involved in transferring money to Israel to avoid any legal issues.
We recommend using our trusted supplier Clear Currency, which has an excellent track record of quality service in the UK and the US for sending money to Israel. Click here to contact them!
Tax Considerations When Transferring Money to Israel
New Olim benefit from a 10-year exemption on foreign-sourced income — meaning money you transfer to Israel from abroad that represents foreign income or savings is generally not taxable in Israel during your first decade. However, large wire transfers to Israel from foreign bank accounts may require documentation to confirm the source of funds, particularly if you are buying property in Israel. Your Israeli bank will ask. Having clear records of where the money came from — salary, savings, pension withdrawal, property sale — is important. For the full picture on how olim taxation works, see our Israeli tax guide for Olim.
Concluding Remarks
Moving to Israel and transferring your assets here can be an exciting and rewarding experience. Israel is a vibrant and diverse country that offers a high quality of life, a strong economy, and a rich cultural heritage. Sending money to Israel from abroad is a straightforward process that involves comparing the different options and fees involved. Whether you choose to use a currency specialist, online money transfer platform, or bank wire transfer to Israel, it’s important to choose the most cost-effective and reliable option.
Olim Paveway encourages you to consider the many advantages of moving to Israel and transferring your assets here. Whether you are planning to start a new business, invest in real estate, or retire in Israel, moving your assets thoughtfully when you send money to Israel can help you achieve your goals. We are here to help you every step of the way.