Changing Money                Cash Withdrawal        

Purchases and Payments      Tips and Bargaining

Banks                                  State of Israel Bonds

Opening Bank Accounts       Exchanging Shekalim




Currency exchange rates



Israeli Currency

The State of Israel’s currency is the New Israel Shekel (NIS) or shekel for short (pluralized as shkalim in Hebrew or shekels in English). There are 100 agorot (agora in singular) in each shekel. Bank notes are in denominations of NIS 20, 50, 100, and 200; coins are in denominations of NIS10, NIS5, NIS1 and 50, 10 and 5 agorot.

Changing Money

Unlimited sums of local and foreign money may be brought into Israel as cash, travelers’ checks, credit cards or State of Israel bonds. Foreign currency of all kinds may be exchanged at the airport, banks, post offices, most hotels or licensed exchange agencies in large cities. A passport is required when exchanging travelers’ checks. The rates vary from place to place, and banks charge a commission. It is recommended, though not obligatory, to carry a small amount of US dollars, since certain tourist sites, especially in the Old City of Jerusalem, take payment in dollars. More Information is available here.

Cash Withdrawal

Holders of international credit cards can withdraw local or foreign currency at banks which accept their credit cards. There are Automated Teller Machines outside most banks.

Purchases and Payments

All goods and services may be purchased with the following currencies, which can be freely exchanged: Euro; Australian Dollar; US Dollar; Hong Kong Dollar; New Zealand Dollar; Singapore Dollar; Canadian Dollar; Japanese Yen; Danish Krone; Norwegian Krone; Swedish Krona; Pound Sterling; Swiss Franc; South African Rand. Nevertheless, storeowners and service providers are not required to accept foreign currency and are permitted to give change in shekels even if payment was made in foreign currency.

Tourists who pay for goods and services in foreign currency are exempt, in certain cases, from VAT (Value Added Tax). In addition, some businesses in Israel are registered with the Ministry of Tourism program for refunding tourist VAT payments. These merchants are required to inform their customers of this arrangement, and to provide them with an invoice which they must present at their point of departure from Israel together with their purchase in a sealed package. The VAT, less a commission, will be returned on the spot. Those departing from Haifa, Ashdod or Eilat will have the VAT returned to the address on the invoice. If the amount to be reimbursed exceeds $1,000, it will be sent after the invoice is verified with the tax authorities.

The minimum amount of purchase eligible for VAT refund is $100, including VAT. In Eilat, where VAT is not collected, the minimum purchase for VAT refund is $200, including VAT. The sale of jewelry whose shekel value equals $200, including VAT, will not be VAT-exempt.

To receive VAT refund, ensure that you get a receipt with a list of all the items you have purchased and details of the purchaser. The receipt and purchases must be put into a sealed bag. Tourists must then go to the “Change Place” at Ben Gurion airport or other exit port. If you wish to send the items that you purchased with your luggage, you must declare the purchase at the security check, and present your passport, flight ticket, purchases and receipts at the counter. The attendant will open the bag, examine the contents, sign the receipt, and refund the VAT in any currency minus a commission. The VAT refund can also be sent to your address abroad for an additional charge.

There is no VAT refund for the following items: food, drinks, tobacco products, electrical appliances, cameras, film or other photography equipment.

Additional information about VAT refunds is available on the "Change place Financial Servises" website: http://www.cpl.co.il/English/index.asp  or at 03-975-4020. 

Major credit cards – American Express, Diners, Visa, Mastercard/Access/Eurocard – are widely accepted in Israeli restaurants, stores, hotels, museums, etc.

Tips and Bargaining

In Israel it is customary to tip primarily in restaurants. When the bill does not include service, a 12% tip should be added to the payment. In hotels, one tips the bellhop or any other service provider. Taxi drivers are generally not tipped.

Bargaining is acceptable in Israel, but not everywhere. In the open-air markets, do not hesitate to bargain as it is part of the experience and doing so can lower the price. Storekeepers are legally required to display prices and for the most part are not open to bargaining. This is also true of restaurants and public transportation. Passengers are advised to ask cab drivers to turn on the meter, thus avoiding unnecessary haggling.

Banks

Various banks have branches in the large cities and in smaller communities. Most banks are open from 8:30 am until 12 noon Sunday to Thursday, and 4–6pm on Sunday, Tuesday and Thursday. On Fridays and Jewish holiday eves, banks are open from 8:30 am until 12 noon. All banks are closed on Shabbat. Most of the large hotels have banks which often offer additional, more convenient hours.

State of Israel Bonds

Tourists who have State of Israel Bonds – whether in their name or transferred to them – may redeem them at any bank prior to their date of maturity for full nominal value plus interest. Payment will be made in local currency up to the equivalent of US $2,500 per month.

Opening Bank Accounts

Tourists may open local currency accounts or special non-resident and foreign resident accounts at any bank.

Exchanging Shekalim for Foreign Currency

Shekels can be converted back to foreign currency at Ben Gurion Airport banks, up to US $500 or its equivalent in other currencies. Any remaining shekels over this amount that were acquired during a single visit to Israel (up to a maximum of US $5,000) can be reconverted with bank receipts proving the original conversion of the foreign currency.