Israel's cost of living is expensive, with a Cost of Living Index of 84.95 (NYC = 100). Groceries (80.47) and restaurant prices (96.72) are also relatively high.

The housing market is moderate, with a property price to income ratio of 11.87 years. The rent index is 30.68, indicating relatively high rental costs compared to NYC.

Purchasing power in Israel is excellent, with an index of 132.77, indicating higher buying power than NYC.

Israel has a progressive income tax system with rates up to 47%, plus a 3% surtax for high earners, reaching a top marginal rate of 50%. The standard VAT rate is currently 17%, increasing to 18% from January 1, 2025. Property taxes (Arnona) are levied annually by municipalities, and real estate purchase tax for foreign buyers starts at 8%.

Israel boasts a highly dynamic business environment, with its startup ecosystem ranked #3 globally by StartupBlink and Tel Aviv ranked #4 worldwide by Startup Genome in 2025. It is a global leader in venture capital per capita and has produced numerous unicorns.

Israel provides universal healthcare coverage for citizens and permanent residents through a national health insurance system. The pension system includes a state old-age pension and mandatory employer-sponsored schemes. Unemployment benefits are available for eligible residents.

There is currently no formal deposit insurance mechanism in Israel, though an implicit government guarantee exists. The Bank of Israel is exploring the implementation of a formal scheme. The banking system is modern, sophisticated, and resilient, with strong supervision by the Bank of Israel.