Retiring in Israel: Aliyah for Retirees, Taxes, Pension and Healthcare for a French Retiree

People eligible under the Law of Return can make aliyah in retirement: the Ministry of Aliyah and Integration provides separate rates for seniors. The 2026 absorption basket is ₪22,779 for a single retiree and ₪34,263 for a couple of statutory retirement age; for people who reach that age within five years of aliyah, it rises to ₪26,785 (single) and ₪50,888 (couple). It is paid over six months during the first year, with no income test.

Olim close to retirement may receive, in the second half of the first year, help for dependants (“nitmachim”). The ministry also points to a special old-age allowance for senior new immigrants and dedicated housing solutions. The page on living in Israel details settling in, ulpan and daily life.

The retirement age is 67 for men; for women, it goes from 62 years 4 months (born in 1960) to 65 (born from 1970). At 70, the pension is available with no conditions (CLEISS). At 1 January 2026, the basic pension of the National Insurance Institute (Bituach Leumi) reaches ₪1,838 for a single person, ₪2,762 for a couple, ₪1,941 after age 80 and ₪2,865 for a couple where the holder is over 80. A supplement of 2% per year of insurance (capped at 50%) and 5% per year of deferral is added.

New immigrants who arrived after a certain age, with no old-age insurance in Israel, may receive a “special old-age allowance” funded by the Ministry of Finance. Its amount equals the basic pension, with no supplement, and it remains subject to a means test: earned income of up to ₪10,113 (single) or ₪13,484 (couple) a month before age 70, at 1 January 2026, or three times that from age 70. It is paid on the 28th of each month, and any departure from the country must be reported to the institute.

The France-Israel social security agreement (17 December 1965, in force since 1 October 1966) covers old age and survivors: each state pays for the periods completed under its legislation, and the insured person chooses between two prorated pensions, calculated on the aggregation of periods, or two national pensions. Benefits are exportable (CLEISS, the French centre for international social security liaison). The guides to drawing your pension abroad and quarters worked abroad detail the procedure.

A retiree living in Israel proves they are alive each year with a life certificate, completed by the competent authorities of the country of residence (town hall, notary, consulate depending on the case) or through the “Mon certificat de vie” app. If the document is not returned within two months of notification, payment of the pension is suspended (Assurance retraite, the French pension fund).

The tax treaty, signed in Jerusalem on 31 July 1995 and in force since 18 July 1996, first defines residence: in the case of dual residence, it uses the permanent home, then the centre of vital interests, habitual abode and finally nationality (article 4). Article 18 provides that pensions and annuities paid to a resident of a state are taxable only in that state. A resident of Israel therefore reports in Israel a pension paid in respect of a career in the private sector.

Article 19 reserves pensions paid by a state, a local authority or a public-law body for services rendered to that state: they remain taxable in the paying state, except for a person who is resident in the other state and holds only its nationality. The French tax administration’s sheet “You reside in Israel” lists among the income to be declared in France pensions paid by the French state, except for a person of Israeli nationality without French nationality. Even where you declare in France, it recommends contacting the tax authority of the country of residence to learn your obligations. A retiree should contact both administrations before leaving.

An Israeli resident is in principle taxable on worldwide income. New immigrants and returning residents who have been absent for a long time benefit from exceptions (Tax Authority). The 10-year exemption covers all foreign-source income, passive (dividends, rents, royalties, capital gains) as well as active; the Ministry of Aliyah specifies that it runs 10 years from aliyah. For a French pension, which is foreign-source income, whether this exemption applies should be confirmed with the Tax Authority (*4954).

Arrivals up to 31 December 2025 are exempt from reporting income and assets held abroad for 10 years; since 1 January 2026, reporting is compulsory, with the tax exemption maintained. An “adjustment year” requested within 90 days of arrival means the year is treated as that of a non-resident, after which the exemption runs for 9 years. Returning residents absent for at least 6 years have a 5-year exemption on non-professional foreign income, pensions included. Added to this are about 4.5 years of tax credit points, 20 years of exemption on interest from foreign-currency deposits and a “0% tax” reform that targets only earned income.

A retiree who makes aliyah registers with a health fund at the airport, with the health contribution suspended for up to 6 months, a 50% reduction on the quarterly co-payment ceiling for one year (with no time limit for senior families) and only the health contribution to pay when they immigrate after age 62 (Ministry of Aliyah, Bituach Leumi). National insurance also pays a long-term care benefit from retirement age for dependent people: on the January 2025 scale, from ₪1,572 a month at level 1 to ₪6,860 at level 6 (CLEISS).

The 1965 agreement provides for no reimbursement in Israel on the basis of the French pension: the retiree joins the CFE (French nationality) or takes out private insurance (CLEISS). On a temporary stay in France, a pension holder with at least 15 years of insurance, with no activity, is covered, for the general scheme, through the CNAREFE (the national centre for French retirees abroad); the spouse needs travel insurance. Outside tax residence in France, a health contribution of 3.2% (basic pension), 4.2% (supplementary pension) or 7.1% (self-employed) replaces the CSG and CRDS (French social contributions). See the guide to a retiree’s health insurance abroad, retirement insurance abroad and the page on healthcare reimbursement in Israel.

Housing weighs most in a retiree’s budget: the page on living in Israel details rents and prices by city. Several forms of help ease settling in (Ministry of Aliyah and Integration): rent assistance from the 7th to the 30th month for olim who do not own property, an arnona reduction of up to 90% on 100 m² for 12 months, a preferential-rate mortgage, partial exemption from the purchase tax from one year before to seven years after aliyah and public housing on criteria.

For a realistic health budget, the guide to budgeting for healthcare abroad and the retirement section help put numbers on a plan. Expavy compares health cover for retirees through the diagnostic.