Educational Resource

The Aliyah Financial Dictionary

The terms that come up constantly in U.S.–Israel financial planning — defined in plain English. Bookmark it; you'll meet all of these on the journey.

The Move Itself

Aliyah: Immigration to Israel by Jews under the Law of Return — literally “ascent.” In financial planning terms, a change of tax residency with consequences in both countries.
Oleh / Olim: A new immigrant to Israel (plural: olim). Your status date as an oleh drives eligibility windows for several Israeli benefits.
Teudat Oleh: The immigrant booklet/certificate documenting your Aliyah date and status — the anchor document for benefit eligibility timelines.
Nefesh B'Nefesh: The nonprofit that facilitates Aliyah from North America and the U.K., coordinating with the Jewish Agency on applications, flights, and initial logistics.
Sal Klita: The “absorption basket” — a package of initial financial assistance Israel provides to new olim during their first months.
Apostille: An international certification that makes U.S. documents (birth certificates, marriage licenses) legally recognized in Israel — a common pre-move paperwork step.

Cross-Border Tax

10-Year Exemption Period: Israel's tax benefit for new residents: a general exemption on foreign-source income and gains, and an exemption from reporting foreign assets, for ten years from becoming an Israeli tax resident. What happens in year eleven is a central planning question.
U.S.–Israel Tax Treaty: The bilateral treaty coordinating how the two countries tax cross-border income. It resolves many questions — and leaves others, like Roth treatment, notably ambiguous.
PFIC: Passive Foreign Investment Company — the punitive U.S. tax regime that generally applies to Israeli mutual funds and pooled investments held by U.S. citizens. A key reason account decisions are examined before opening Israeli investment accounts.
FBAR: The Report of Foreign Bank and Financial Accounts — a U.S. filing generally required once your non-U.S. accounts exceed $10,000 in aggregate. Applies to most olim who open Israeli accounts.
FATCA: The U.S. law requiring foreign financial institutions to report on U.S. account holders — the reason Israeli banks ask detailed questions of American clients.
Citizenship-Based Taxation: The U.S. taxes its citizens on worldwide income regardless of where they live — so U.S. filing obligations generally continue after Aliyah.
Section 121 Exclusion: The U.S. rule that can exclude a large portion of gain on the sale of a primary residence, subject to ownership and use tests — which is why the timing of a U.S. home sale relative to a move gets examined.

Retirement & Benefits

Totalization Agreement: A bilateral pact coordinating social security coverage and credits for people who work in two countries. The U.S. and Israel do not have one — a fact with real consequences for people who split a career across both systems.
Bituach Leumi: Israel's National Insurance Institute — the system handling Israeli social benefits and mandatory contributions, separate from and uncoordinated with U.S. Social Security.
Keren Pensia: An Israeli pension fund — the standard workplace retirement vehicle in Israel, with its own contribution rules and tax characteristics.
Keren Hishtalmut: An Israeli “advanced study fund” — in practice, a popular medium-term savings vehicle with favorable Israeli tax treatment (whose U.S. treatment raises its own questions).
Kupat Holim: Israel's health funds (Clalit, Maccabi, Meuhedet, Leumit) — membership in one is how residents access the universal healthcare system.
Medicare Part B Decision: The question every retiring oleh faces: Medicare generally doesn't cover care abroad, but dropping Part B can mean lifelong premium penalties if you ever return. A classic keep-or-drop tradeoff.
Roth Treatment Ambiguity: The unresolved question of how Israel taxes Roth IRA distributions after the exemption period — the treaty predates Roth accounts, and practitioners differ. One of the most consequential open questions in Aliyah planning.

Estate & Currency

Israeli Succession Law: Israel's inheritance framework — no estate tax currently, but its own succession procedure and probate process, which U.S. wills interact with in ways families often don't expect.
Situs: Where an asset is legally located for tax and estate purposes — real property in each country generally follows local rules, which is why cross-border estates get examined jurisdiction by jurisdiction.
Currency (Shekel) Exposure: The planning question of earning, holding, and spending across dollars and shekels — retirement income sourced in one currency against living costs in the other creates exposure that plans typically address explicitly.