Guide for New and Visiting Faculty

Zone) before the deal is finalized. You are free to re-sell it or leave it with somebody and there will be
no taxes to pay. Alternatively, you might think of buying a new car in Israel (or ordering one in your
name) from an authorized dealer, with taxes to be paid at the time of purchase as noted above. But you
can sell it here after using it without having to export it. Ownership transfer may only be done abroad.
Finally, you could buy (or order) a new or used car tax free in Europe and bring it with you, thereby
saving the high cost of shipping from the U.S. You may ship from any European port or bring the car
by ferry from Italy or Greece. For use in Israel, it must satisfy Israeli standards and specifications. If
you plan eventually to take the car to another country, make sure beforehand that it satisfies the
standards of that country. A tourist purchasing a new car in Israel will be required to deposit a bank
guarantee at the sum of the due taxes immediately for a maximum period of one year.
Do consider carefully whether you need a car or not. Except for the Sabbath and Jewish holidays, you
are likely to find public transportation adequate. It is relatively inexpensive, and bus routes cover the
whole country. In addition, Israel Railways is constantly improving its equipment and service; trains
leave Jerusalem towards Beit Shemesh and Tel-Aviv about once an hour. (See www.rail.org.il, or
write them at pniyot@rail.org.il) Finally, city parking can be costly and a headache.
If, however, you do decide to import a car, make sure to contact the Israeli Embassy or Consulate
nearest your home for the latest regulations.
Car Registration
If you are a new immigrant or temporary resident importing a car to Israel, you must register it at the
Bureau of Motor Vehicles (Misrad Harishui) and pay a license fee (agrat rishui) valid from the day
your car is cleared from Customs. If you bring with you a new car that was not registered abroad, you
will receive a special traffic permit valid for 48 hours on release of the car from Customs, and against
payment of a small fee. This will enable you to register your car immediately.
One year after registration of your vehicle you will receive documents for the obligatory annual vehicle
test and for the license renewal fees.
If you are staying in Israel for up to one year and you hold a B-2 visa, you are exempt from payment of
the car licensing fees for six months, according to Form 161. When the six months are up, the car must
be exported (see also Customs regulations above). However, if you are granted permission to keep
your car in the country after this exemption period (having fulfilled all Customs requirements), you are
obliged to pay the car license fees quarterly.
B-1 visa holders are not exempt and must pay license fees immediately after the car is cleared from
Customs. Before shipping your car here make sure that this regulation is still in force. You must,
of course, be furnished with a current car registration, driver's license and car insurance policy valid for
Israel. You are required to attach the following documents to the application form for car registration
(which is filled out at the Bureau of Motor Vehicles):
1. Confirmation of the payment of customs, purchase tax and other dues or a document granting
exemption (te'udat p'tor), or reduction from such.
2. A document of ownership of the car.
3. A car insurance policy covering at least third-party risks and valid in
Israel.
4. Passport or new immigrant ID (te'udat oleh), or both.
Car registration procedures, including transfer of car ownership, may be done at any post office in the
country, via the Ministry of Transport’s computerized registration network.
Driver's License
Driving in Israel without a valid driver's license is illegal. The law allows new immigrants and
temporary residents to drive in Israel with a foreign or international driver's license for no more than
three months; thereafter, a local license is required. Other foreign residents, including tourists, who