Despite an estimated one million Israelis residing abroad, a significant decline in citizens returning to the country has sparked concern among lawmakers and government officials. Data from the Aliyah and Integration Ministry indicates a sharp 53% drop in returning residents between 2020 and 2024, highlighting a pressing national challenge.
While an average of 6,650 citizens annually returned to Israel between 2014 and 2024, nearly a third of whom came back after at least a decade abroad, the recent downturn suggests growing obstacles.
The Knesset’s Research and Information Center (RIC) provides varying estimates for Israelis living abroad, with the Central Bureau of Statistics (CBS) recording between 571,000 and 613,000 in 2021, excluding children born overseas. The Aliyah and Integration Ministry’s broader estimate stands at approximately one million.
In response to these trends, Labor MK Gilad Kariv, who chairs the Aliyah, Absorption and Diaspora Committee, convened a session last Wednesday to discuss potential benefits for returning residents.
“The committee has addressed the issue of benefits for returning Israelis in the past, but bringing Israelis back to live in their homeland is not a government priority,” Kariv said.
He pointed out that “the last government resolution on the matter was in 2010, and much of it was never implemented.
Since then, Israeli governments have failed to meet their goals regarding returnees.” Kariv emphasized the strategic importance of this population, noting that “the Israeli Diaspora is the second-largest Jewish community after that in the US. We must establish a national program to bring them back.”
According to RIC data, about 30% of returnees come back within five years, while a substantial 70% return after longer periods, with nearly a third choosing to come back after at least 10 years abroad.
Israel's healthcare system
One of the most significant challenges for returning residents is navigating Israel’s health insurance system. Israelis lose their health coverage after five years abroad and are required to wait anywhere from two to six months before regaining health services upon return.
To waive this waiting period, returnees face a fee of NIS 15,060. Between 2022 and 2024, 12,581 adult returnees were subject to this waiting period, with only 1,281 opting to pay for immediate coverage.
“One of the biggest challenges for returnees is health insurance. Israelis lose their health coverage after five years abroad. To renew it, they must wait six months or pay NIS 15,000 for immediate coverage,” reiterated Dr. Ayala Eliyahu from the Knesset RIC.
Little support from the state
Beyond health coverage, returning residents often face a disparity in benefits compared to new immigrants.
“New immigrants receive tax credits, but returning residents do not. Returnees who come back after six to 10 years are not eligible for additional benefits and must pay taxes on some of their foreign-earned income,” explained Meir Eisenkot of the Knesset RIC.
Yesh Atid MK Vladimir Beliak highlighted these “bureaucratic obstacles” that many Israelis abroad encounter, noting the “gap between the benefits for new immigrants and those for returnees.” He stressed, “Unfortunately, in the last two years, Israel has become less attractive to Israelis living abroad. These are strong individuals who now pay taxes to other countries. We must create positive incentives to bring them back, and it must be a top government priority.”
A sharp drop in returnees has been observed since 2023. MK Kariv directly linked this decline to the ongoing political debates within Israel. “I have no doubt this is tied to the ongoing debate over the state’s democratic and liberal character. As long as ministers continue attacking the country’s democratic symbols, fewer Israelis will come back,” he asserted. He also pointed out that “large numbers of Israelis continue to leave the country each year. Net migration is negative.”
This negative migration trend underscores the urgency of the situation, with MK Kariv declaring, “Bringing Israelis home must be a central issue for the committee in the coming months, with the goal of creating a national emergency plan to encourage their return. Bringing Israelis home is a vital national interest.”
The Jerusalem Post spoke with Israelis on both sides of this migration trend to understand their motivations.
Miriam Karayoff and her family chose to leave Israel for the United States, driven by perceived better opportunities. “As an American, I felt like we have better opportunities in the US,” Karayoff told the Post. Her husband and daughter are Israeli, and she secured a marriage-based Green Card to facilitate their move.
Returning home
Conversely, Philip Kestenbaum, 69, an American-born Israeli citizen who moved to Israel at the age of 15 but left in 1985, is now planning a gradual return. Kestenbaum, who is nearing retirement, plans to spend several months shuttling between Israel and the US.
“I am ready to slow down and am well within retirement age, but [I am coming back] to look for opportunities,” he said. His initial departure was due to “social difficulties,” finding it hard to establish lasting relationships when potential partners were often in Israel for short periods.
Now, Kestenbaum’s primary motivation for returning is his family. “I want to come back mainly because two of my children and grandkids are in Israel, as well as other family,” he stated, acknowledging, “I have still never felt comfortable as a native, I visit twice a year… But the positives outweigh other valid feelings.”
The Aliyah and Integration Ministry and the Foreign Ministry operate “Israeli Houses” in 10 diplomatic missions abroad, providing assistance and organizing events to encourage return.
Doris Kraif from the Aliyah and Integration Ministry said, “Most core members of Israeli youth movements abroad are children of emigrants. We are in talks with the minister about a returnee policy. The committee’s message has been conveyed to ministry leadership. We’re examining the issue within our priorities. Our aliyah fairs target both local Jews and Israeli emigrants.”
YAIR KANAI of the Jewish Agency emphasized that “encouraging Israelis and their children to return is a different and more complex process than encouraging aliyah among Jewish communities abroad. It must be handled with sensitivity.”
The Finance Ministry’s Budget Department, represented by Tair Raubchein, cautioned against creating “incentives for Israelis to leave the country for short periods” when developing returnee plans. She mentioned that a recently established program to bring back Israeli doctors has a NIS 20 million budget and is actively working on that front.
MK Kariv concluded the committee session by asserting, “There is no difference between new immigrants and returning residents – both should be warmly embraced by the State of Israel from the moment they express interest in coming back.”
He affirmed the group’s commitment to working toward “an updated government resolution to support the return of Israelis,” and requested that the Finance Ministry and the Tax Authority explain their positions on granting tax credits to returnees to bridge the gap with new immigrants.
Additionally, Kariv stressed the need to develop specific measures to assist the children of returnees, particularly concerning educational integration.