Car and driving licence to Israel: the olim benefit, and what you deregister in the Netherlands
In the first three years after aliyah, an oleh may buy a car with less tax, if he already held a permanent licence before aliyah and has a valid Israeli licence. Your Dutch licence is valid in Israel and can be renewed from Israel. Only deregister your car for export once you know which papers Israel asks for.
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For anyone making aliyah, there is a clear benefit in buying a car in Israel: according to the Jewish Agency, an oleh may buy a car with reduced tax in the first three years after aliyah. For that you must already hold a permanent licence from your country of origin before aliyah and obtain a valid Israeli licence in Israel. Your Dutch licence is valid there for the first year, and you can renew it from Israel. If you take your own car, only deregister it once you know which papers Israel wants to see.
What applies in each situation?
| Situation | What applies | According to |
|---|---|---|
| Oleh buying a car | reduced tax, within 3 years of aliyah | Jewish Agency |
| Oleh importing a car from 2007 or later | no purchase tax | customs tariff of the Israel Tax Authority (16-10-2026) |
| Foreign licence once you live there | valid for 1 year from your first entry, then convert | Government Press Office (March 2024) |
| Which car | a new car, or a used one that another oleh bought with the same benefit | Jewish Agency |
| Dutch licence on a visit | valid in Israel | NederlandWereldwijd |
| Renewing a Dutch licence from Israel | € 36.40, decision within 10 working days | RDW |
| Israeli licence of an Israeli in the Netherlands | certified free of charge through the embassy | embassy in The Hague |
| Exporting your own car | deregister with the RDW, then 14 days of driving on white export plates | RDW |
What does the benefit for olim involve?
The Jewish Agency mentions three conditions. You buy within three years of aliyah. You already held a permanent licence from your country of origin before aliyah. And you have a valid Israeli licence. The benefit applies to a new car, or to a used car that another oleh bought with the same benefit.
If an oleh imports a car from 2007 or later, according to the customs tariff of the Israel Tax Authority (16 October 2026) he pays no purchase tax, but does pay customs duty. Customs works out the amount. How long you have to drive the car yourself differs per guide of the Ministry of Aliyah and Integration: four years (December 2022) or five years (guide to transportation, 2017, updated in 2020).
According to the guide to transportation, a used car may enter Israel without an import licence if it is at most 24 months old at registration, 48 for a returning resident. A returning resident gets no tax benefit on a car according to the 2022 guide. For partners and employees we found none.
May you drive on your Dutch licence?
For one year. According to the Government Press Office (14 March 2024) a foreign licence is valid in Israel for one year from your first entry. After that you drive on an Israeli licence; your Dutch one stays valid. An oleh with at least five years of licence converts without a driving test. The period for converting is five years after aliyah according to the 2022 guide, three years according to the guide to transportation: ask what applies now.
You can renew your Dutch licence from Israel. The RDW sets two conditions: you live outside the EU and the EFTA, and you are no longer registered at a Dutch address. It costs € 36.40. The RDW decides within ten working days and sends the new licence to a correspondence address in the Netherlands. So arrange that address before you leave, with family for example.
If you have lost your licence, you request a certificate of authenticity from the RDW, also to an address abroad.
I am Israeli and live in the Netherlands. What about my Israeli licence?
Keep it valid. Through the embassy in The Hague you have a valid Israeli licence certified free of charge. You send a signed letter with your name, your licence number and your contact details, with a copy of both sides of your licence and of your Israeli passport. That can be done by email.
How do you deregister your car for export?
If you take your own car, you deregister it at an RDW inspection station or counter, or at a recognised export company. You bring your identity document, the registration card with the registration code, and the number plates, which you hand in. You receive an indemnity certificate and an export certificate. Only then do the insurance obligation, the MOT obligation and road tax stop. After that you may drive in the Netherlands for another 14 days with the registration on white plates; a passenger car must then be insured and have a valid MOT.
If the car goes outside the EU, as to Israel, you also file an export declaration with Dutch Customs. You don't get the bpm back: according to the Tax Administration that refund only applies on registration in another EU country, Iceland, Liechtenstein or Norway.
Do not deregister your car for export before you know which documents Israel asks for, the RDW warns. You need the registration certificate on import, and requesting a new one is no longer possible after export.
What else you take with you is in household goods to Israel.
In Vertrekklaar this is phase 4 of 5 of the journey, step 4.3: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Israel or go straight to step 4.3 in the open plan.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Jewish Agency — the car with reduced tax for olim, and the licence conditions — jewishagency.org
- Israel Tax Authority — customs tariff, group 7, valid on 16 October 2026, no purchase tax for an oleh importing a car from 2007 or later — shaarolami-query.customs.mof.gov.il
- Ministry of Aliyah and Integration — Guide for the New Immigrant (December 2022), the car and the driving licence for olim — gov.il
- Ministry of Aliyah and Integration — Guide to Transportation in Israel (2017, updated in 2020), importing a car and converting a licence — gov.il
- Government Press Office — guide to converting a foreign driving licence (14 March 2024), valid for one year from the first entry — gov.il
- Dutch Tax Administration — refund of bpm on export, only on registration in another EU country, Iceland, Liechtenstein or Norway — belastingdienst.nl
- NederlandWereldwijd — travel advice for Israel, your Dutch licence is valid — nederlandwereldwijd.nl
- RDW — renewing a Dutch driving licence from abroad (€ 36.40) — rdw.nl
- RDW — requesting a certificate of authenticity for your Dutch licence — rdw.nl
- RDW — exporting a vehicle, with export plates and a customs declaration outside the EU — rdw.nl
- Israeli embassy in The Hague — certifying an Israeli driving licence when you live abroad — embassies.gov.il
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