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12 Best Places to Retire in Israel

This article will look at the 12 best places to retire in Israel. If you wish to skip our detailed analysis of the business climate of Israel and details on retiring there, you may go to the 5 Best Places to Retire in Israel.

Business Climate of Israel

Israel boasts a lucrative business climate owing to its strong innovation ecosystem, skilled workforce, and strategic location. Also known as the “Startup Nation,” it has been heavily investing in scientific research as well as education. American companies dominate the landscape of multinational R&D centres in Israel, with U.S. firms representing nearly two-thirds of the over 300 established facilities. At present, there are 135 Israeli companies listed on the NASDAQ, making it the fourth country with the most companies after the United States, Canada, and China.

Owing to strong economic buffers such as a resilient tech sector, low debt, and strong growth, the Covid-19 crisis had a comparatively low impact on the country’s economy. As such, the country experienced a strong economic rebound post-pandemic, having 8.1% GDP growth in 2021. Meanwhile, the GDP growth in 2022 was 6.5%. Economic policies in the country are sound and supportive of growth. The country also provides many incentives and benefits to those looking to invest in the country, such as tax exemptions, reduced tax rates, grants, and other tax-related benefits.

In particular, the U.S. Bureau of Economic Analysis notes that the U.S.-Israeli bilateral economic and commercial relationship has been strong, with two-way trade in goods and services reaching USD 51.8 billion in 2022.

However, conflict and political tensions with the neighboring Palestine have often reflected negatively on Israel’s equity markets. On top of that, Israeli investors have a home-bias problem.

Israeli Investors’ ‘Home-Bias’

An important highlight of Israeli investors is that, on average, they allocate a very high share of their portfolio to Israeli-based equities, with lower than average room for diversification outside Israel.

In a paper that compared Israeli equity indices (TA-35 and TA-125) with those of US equity indices like the S&P 500, S&P Midcap 400 and Smallcap 600, it was shown that an imaginary diversification in US and Israeli indices would have outperformed the Israeli market all the way since December 1994. It is empirically established that Israeli investors could reduce risk by diversifying outside Israel.

Retiring to Israel

Israel may not be a conventional choice for retirees looking for options to relocate during their golden period, but it can be the start of a new adventure. Owing to its strong economic and business climate, high-quality of living, and modern amenities, retirees can come into the country and make it their home. The country is also revered as a potentially promising retirement destination because of its rich history and culture, world-class healthcare, and diverse landscapes.

Jeruslem and Tel Aviv, two of the best cities in Israel to live in, are also amongst the top millionaire hotspots. These are also the richest cities in Israel, where some of the wealthiest people are residing. Ranking 30th and 53rd respectively, Henley & Partners World Wealthiest Cities Report 2023 states that Tel Aviv is home to 11 billionaires, while Jerusalem has five. Netanya and Herzilya each have two billionaires living there. As such, Tel Aviv’s well-off population has been ballooning by 51% over the last decade, whereas Jerusalem has witnessed a 37% growth.

Since potential retirees usually hunt for other countries to stretch their retirement savings further, relocating to the rich cities may not always be ideal. For this reason, it is important to find options that can provide the best bang for your buck. As such, one of the cheapest places to live in Israel is definitely Dimona. Ashkelon is another cheap place to retire to, along with Beit She’an, Nesher and Tiberias. Retirees will find some of the cheapest apartments for an average of $92,000.

Sean Pavone/Shutterstock.com

Methodology

To come up with our list of 12 best places to retire in Israel, we have checked out four different sources ( 1, 2, 3, 4 ) that have generated lists for the same. Next, we conducted an extensive research on expat forums to assess retiree experiences in the different places of Israel. Their experiences and recommendations have been incorporated into our list.

For scoring purposes, a consensus approach was used. Each time a source recommended a place, it was awarded one point. Points have been summed up, and places have been ranked in ascending order from the lowest to the highest scores.

The costs of living mentioned are for a single expat retiree living in Israel for one month. Similarly, the rental prices mentioned are for one-bedroom apartments in the area. Sources used for these figures include Nomad List and Cost of Live, amongst others.

Without further ado, here are the best places to retire in Israel:

12. Modi’in-Maccabim-Re’ut

Insider Monkey Score: 2

Modi’in-Maccabim-Re’ut, or simply Modi’in, is a scenic and vibrant city located in central Israel. It is no exception to Israel’s top-class healthcare, a major plus for retirees looking to move here. Modi’in is also one of the safest cities to live in Israel, and retirees relax here with peace of mind. The city is very diverse, too, fostering an inclusive yet welcoming community. It is characterized by modern infrastructure, and there are plenty of shopping centres, restaurants, and other recreation available. Rent for a one-bedroom apartment in the city center averages about $995, and the total cost of living is $1,760.

11. Ashkelon

Insider Monkey Score: 3

Ashkelon is one of the best places to retire in Israel, owing to its picturesque beaches and Mediterranean climate. Retirees living here praise the health advantages of living by the sea. Winters are mild, summers are warm, and a refreshing cool breeze graces the atmosphere. Ashkelon is also revered for being comparatively affordable as compared to the otherwise high cost of living in the country. Rents for one-bedroom apartment is around $899, while overall cost of living averages around $1,449.

10. Beer Sheva

Insider Monkey Score: 4

Retirees familiar with Be’er Sheva recognize it as a modern city nestled in the southern reaches of Israel. The city is known to be reasonably affordable to areas such as Tel Aviv and Jerusalem, with one-bedroom apartments costing around $590 a month. A single expat retiree’s overall cost of living is $1,762 per month. Soroka Medical Center, one of Israel’s largest and most advanced hospitals, is in this city. The city also provides cultural and educational opportunities, as well as opportunities to be social.

9. Mevaseret Zion

Insider Monkey Score: 5

Mevaseret Zion is a mesmerizing town located to the west of Jerusalem. It stands tall in our list of best places to retire in Israel owing to its lush greenery and scenic hills, providing ample recreational opportunities for retirees. Top-notch healthcare facilities are a short drive away in Jerusalem, so retirees can enjoy a serene sub-urban environment without compromising on modern amenities. We estimate that this town’s living cost is between $1,500- $2,000.

8. Ra’anana

Insider Monkey Score: 5

Consistently ranking as one of the best places to retire in Israel, Ra’anana has a lot to offer to potential retirees. For starters, residents enjoy a high quality of life. Clean and well-maintained public spaces, top-notch medical facilities, and modern amenities are available. Theaters, galleries, and music venues make up a vibrant cultural scene in the city. There are many parks, green spaces, and a serene lake. Average house rent is around $1,047 in the city, while the overall cost of living is estimated to be $1,725.

7. Herzliya

Insider Monkey Score: 6

Herzliya is a popular retirement destination in Israel, revered for its picturesque Mediterranean beaches, mild climate, and the array of recreational activities that accompany it. The city is also known for its vibrant cultural amenities, top-notch healthcare facilities, and diverse culinary delights. Scenic waterfront promenades, green spaces, and parks add to the retirement experience. The cost of living is competitive when compared to other coastal cities, with average house rent and overall living expenses averaging $1,374 and $2,125, respectively.

6. Savyon

Insider Monkey Score: 6

Savyon is an exclusive upscale residential town in central Israel known as the Beverly Hills of the country. It offers high-class residential communities and upscale living options for retirees, with tailored services and amenities available. Its proximity to high-quality healthcare is a plus, as is its close knit community that makes living here very welcoming for retirees. One-bedroom apartments can range between $1,000-$3,000 per month, while the overall cost of living is estimated at $2,500-$6,000.

Click to continue reading and see the 5 Best Places to Retire in Israel.

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Disclosure: none. 12 Best Places to Retire in Israel is originally published on Insider Monkey.

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Click to continue reading…