Is Now the Best Time to Make Aliyah? The New Law That Could Change Everything

For years, one of the most frustrating financial barriers facing many US Jews considering Aliyah has been a quiet but costly one — paying social security twice. Once to the US, and once to Israel. Not because of bad planning, but simply because no agreement existed between the two countries to prevent it. For self-employed olim in particular, that meant losing an extra 15% or more of their income during the very years when starting over in a new country is already expensive enough. 

That just changed. 

In late February 2026, the Knesset unanimously passed new legislation exempting American olim from paying Israeli National Insurance (Bituach Leumi) for their first five years in Israel — provided they are already paying into the US Social Security system. It passed 13-0. After decades of lobbying from organisations like Nefesh B'Nefesh, the approval of this law marks an important step forward and reflects the State of Israel's recognition of the needs of new olim, according to Nefesh B'Nefesh's head of Post Aliyah & Advocacy. 

For anyone who has been sitting on the fence about making the move, this is worth paying close attention to. 

What the Law Actually Means in Practice 

The exemption covers Bituach Leumi contributions — though not Bituach Briut (health insurance), which remains separate and is a much smaller amount. To qualify, you must be a new oleh and demonstrate active US Social Security obligations, and the exemption runs for five years from the date of Aliyah. 

Crucially, the Treasury will compensate the National Insurance Institute directly for the exempted amount, meaning your eligibility for future benefits is fully protected — it counts as though you've been paying all along. 

About 3,500 immigrants came from the US in 2025, an increase of 5% from the previous year and up 30% from 2023 — and with incentives like this now in place, that number is only expected to grow. 

The Bigger Picture — Israel Is Actively Investing in Aliyah 

This law doesn't sit in isolation. It's part of a broader push by the Israeli government to make Aliyah a genuinely viable financial decision for working families and professionals. Finance Minister Smotrich has called 2026 the "year of revolution in aliyah" — and while political slogans should always be taken with a pinch of salt, the legislative action backing it up is real. 

For those making Aliyah from the UK, Europe or elsewhere, the picture is also encouraging. The minister of labour holds the authority to extend similar arrangements to additional countries in the future — so this may only be the beginning. 

The Financial Reality of Moving Country 

Of course, tax incentives are only one piece of the puzzle. Moving your life to Israel involves a whole range of financial practicalities — and one of the most immediate is currency exchange. 

Whether you're transferring savings, a pension lump sum, proceeds from a property sale, or simply your monthly income from abroad, how you move your money to Israel matters enormously. Exchange rates fluctuate constantly, and the difference between a good rate and a poor one on a large transfer can run into thousands of pounds, dollars or euros. 

This is where having the right partner makes a real difference. At IsraTransfer, we specialise in helping people moving to — or already living in — Israel get the most from their money. We offer competitive exchange rates, a straightforward transfer process, and a team that understands the specific needs of olim. Whether you're making one large transfer or setting up regular monthly conversions, we're here to make it as simple and cost-effective as possible. 

Thinking About Making the Move? 

If the new Bituach Leumi exemption has you reconsidering Aliyah — or accelerating plans you already had — now is a good time to start thinking about the financial side of the move holistically. Get your tax advice from a qualified cross-border specialist, plan your transfers carefully, and don't leave currency exchange as an afterthought. 

We'd love to help you with that last part. Get in touch with the IsraTransfer team to find out how we can support your move — and make sure more of your money arrives with you.