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Additionally, many expats feel that taxes in Israel are exorbitantly high, with both import taxes and excise taxes leaving buyers bearing the brunt of costs. Wages in Israel tend to be low, despite the government offering numerous incentives and salary subsidies to new immigrants in accordance with the process of aliyah (the right of return).

Tel Aviv, Israel's most cosmopolitan destination, was ranked 15th in Mercer's Cost of Living Survey for 2021, claiming a cost of living higher than both Paris and London. Urban centres are more expensive than desert outposts or mountain towns. The cost of living in Israel varies depending on where in the country an expat decides to settle and what type of lifestyle they aspire to.