Arnona
The Arnona Oleh Discount: One Form, Thousands of Shekels
Arnona is the municipal tax every household in Israel pays — and as a new oleh you can have up to 90% of it waived for a full year. It's one of the most valuable, least complicated benefits of aliyah. But it isn't automatic: claim it correctly and on time, or leave real money on the table.
This guide explains what arnona is, the shape of the oleh discount, who qualifies, the timing decision that quietly doubles many olim's savings, and the step-by-step of claiming it at your municipality. Every figure here is illustrative — rates differ by city and change yearly, so confirm your own numbers with your local authority (iriya or moatza).
The one-sentence version: as an oleh you can claim up to a 90% discount on arnona for the first 100 m² of your home, for one continuous 12-month period, to be used within your first 24 months in Israel — but you must apply for it yourself.
What arnona actually is
Arnona (ארנונה) is the municipal property tax your local authority levies to pay for local services — refuse collection, street cleaning, lighting, parks, and welfare. Every city and town charges it, and it's a real, monthly-scale cost worth understanding before you sign a lease.
Four things to know:
The occupier pays, not the owner. If you rent, the bill is yours unless your contract says otherwise — so the arnona bill should be in your name, which also matters for the discount.
It's calculated by size. Charged per square metre of your home, times a rate that depends on the city, the zone within it, and the property type.
Rates vary widely between municipalities and even neighbourhoods, and are reset (and usually nudged up) each year.
It's billed by the local authority — typically annually with an option to pay in instalments (often bi-monthly), by credit card, standing order, or direct debit.
This is why the discount has a hidden first step. Because arnona follows the occupier, the bill must be registered in the oleh's name before the discount can attach to it. Transferring the account into your name — the municipality's "change of holder" step — is the quiet first move in claiming the benefit.
The discount, in full
The oleh arnona discount is a national entitlement, administered by each municipality. Its shape is consistent across the country, though the exact percentage is set locally.
ElementWhat it meansThe rateUp to 90% — the statutory maximum, granted in full by many cities. Some set it lower; 70–90% is the customary range, so confirm your municipality's figure.The areaApplies to the first 100 m² of your home. Any square metres above 100 are charged at the full, undiscounted rate.The durationOne continuous 12-month period. You choose when it starts.The windowThat 12 months must fall within the first 24 months of aliyah, dated from your teudat oleh.How oftenOnce. A single 12-month entitlement per oleh — it can't be split or repeated.
How the maths works — an illustrative 100 m² flat:
ScenarioFull arnona / yrWith oleh discountYou save100 m² @ ₪50/m²₪5,000₪500₪4,500120 m² @ ₪50/m²₪6,000₪1,500₪4,500
Illustrative only: ₪50/m²/yr is a placeholder rate — your city's may be higher or lower. In the 120 m² case, the first 100 m² is discounted 90% (₪500) and the extra 20 m² is charged in full (₪1,000).
Read the area rule carefully: the 90% applies only to the first 100 m². A larger home still gets the full discount on that first 100 — you simply pay normal arnona on the excess. It rarely changes the decision, but it changes the number.
Who qualifies
The benefit is tied to oleh status, not merely to being new in the country. Knowing which category you fall into avoids a wasted trip to the municipality.
StatusEligible?NoteOleh ChadashYesThe core entitlement — new immigrants with a teudat oleh.Ezrach OlehYesCitizen-olim (born abroad to Israeli parents) are included.Katin Chozer / returning minorNoReturning minors are excluded from this benefit.Toshav Chozer / returning residentGenerally noNot normally eligible — verify locally.
A few conditions apply across the board: you hold a teudat oleh (and the 24-month clock runs from its date); the arnona bill is in your name; you can prove residence with a rental contract (commonly 12 months or more) or proof of ownership; and you haven't already used it — the municipality may ask for confirmation you didn't claim the oleh discount at a previous address or absorption centre.
One special case worth flagging: olim dependent on care and entitled to certain disability or nursing allowances may qualify for a discount on the whole area of the home rather than just the first 100 m². If that could apply to you, ask the municipality directly — the rules differ from the standard track.
Timing it right — the decision most olim miss
Here's the part that quietly doubles the saving. Because you get one 12-month period to use within 24 months, when you start the clock is a real financial decision — not a formality. Start it in the wrong home and you spend your best benefit on your cheapest arnona.
The principle: spend the 12 months where the arnona bill is highest and the home is closest to 100 m². A 90% discount is worth far more on a ₪6,000 bill than on a ₪2,000 one.
In practice:
In an absorption centre or ulpan first? Arnona there is often minimal or covered — don't burn the entitlement on it. Wait until you move into your own apartment.
Short-term landing flat, then a permanent home? If the permanent home is bigger or in a pricier zone, consider holding the discount for it — provided you stay inside the 24-month window.
Watch the 24-month wall. The window is firm. Don't hold out so long that you run out of months — a claimed discount beats a perfectly-timed one you never used.
It isn't retroactive. You generally can't backdate it to earlier tax periods, so the clock effectively starts when you apply. Plan the start; don't drift into it.
The trade-off in one line: maximise the bill the discount lands on, but never at the cost of missing the window. Bigger home, pricier city, full 12 months — used before month 24.
How to claim it (it's not automatic)
No one grants this on your behalf. The discount is requested from your local authority, almost always through an online form on the municipal website. The sequence is simple, but each step has to be done:
Put the bill in your name. Use the municipality's change of holder form to register yourself as the arnona account holder, with your lease or proof of ownership.
Find the oleh discount form. On your city's website, under arnona discounts (hanachot arnona) — there's usually a dedicated new-immigrant option.
Submit your documents. Teudat oleh, teudat zehut, your rental contract or proof of ownership, and the completed request form.
Confirm the start date. Make sure the 12-month period begins when you intend, and that you're inside the 24-month window.
Keep the confirmation. Save the approval and check the discount actually appears on your next bill — follow up if it doesn't.
Already paid in full before the discount was approved? You can usually request the difference back — either refunded to your Israeli bank account or credited against your next bill. Keep receipts and ask the municipality for the refund form.
What to bring, and what comes after
For the application: your teudat oleh (proof of status and the start of your 24-month clock), teudat zehut, rental contract (commonly 12+ months) or proof of ownership, the arnona account already in your name, the completed oleh-discount request form, and any confirmation you didn't use the discount at a prior address.
When the oleh year ends, don't fall off a cliff. Check immediately whether you qualify for another reduction — income, family status, age, or service-based. Common ones include means-tested low-income discounts, single parents and large families, senior citizens and pensioners, disability and certain medical situations, soldiers and the recently discharged (separate, generous reductions), and students in some authorities. Many olim quietly start paying full arnona when a second discount was theirs for the asking.
And if the bill itself looks wrong: if you think your home was mis-measured or mis-classified, you can file a formal objection (hasaga) with the municipal tax office — typically within 90 days of receiving the bill. The square-metreage on file drives everything, so it's worth checking.
Do and don't
Do: register the arnona bill in your name as soon as you move in; apply promptly, the moment you sign the lease on the right home; time the 12 months for your highest-arnona, closest-to-100 m² home; confirm your city's exact rate (it may be the full 90% or less); keep every document and confirmation in one place; diarise the 24-month deadline from your teudat oleh date; and line up the next discount before the oleh year ends.
Don't: assume it's automatic (nothing happens until you apply); burn it on an absorption centre or a tiny temporary flat; leave the bill in the landlord's name (the discount can't attach); expect it retroactively for past tax periods; miss the 24-month window chasing the "perfect" start; overlook the over-100 m² portion when budgeting; or forget to check the square-metreage on your bill.
The single most common mistake is letting the arnona bill stay in the landlord's name. The discount follows the registered occupier — if that isn't you, there's nothing for the benefit to reduce. Fix this first.
The whole benefit, on one page
StageWhat to doOn aliyahNote your teudat oleh date — your 24-month clock starts here. Don't activate the discount on an absorption centre or ulpan.Moving into your homeTransfer the arnona bill into your name (change of holder) with your lease or ownership proof.Choosing when to startPick your highest-arnona, closest-to-100 m² home for the 12-month period — inside the 24-month window.ApplyingSubmit the oleh-discount form online with teudat oleh, teudat zehut, and your contract.During the yearCheck the discount appears on your bills; request a refund or credit if you overpaid before approval.As the year endsApply for the next applicable discount — income, family, age, or service-based.
The whole formula, in one line: teudat oleh → bill in your name → time the 12 months for your biggest arnona → apply online → check the bills → roll into the next discount.
A small, well-timed piece of paperwork against one of the larger recurring costs of your first year. Few aliyah benefits pay back the effort so directly — provided you claim it, in the right home, before the window closes.
Olim Advice publishes plain-English guides on every part of the aliyah journey — from the Tik Aliyah and banking through arnona, mortgages, and the costs of running a home.
General information, not financial, legal, or tax advice. Arnona rates and discount rules differ by municipality and change yearly — confirm current figures with your local authority before acting.