What Are National Priority Areas?
Israel designates certain regions as National Priority Areas (Azor Adifut Leumit), primarily in the Negev (southern Israel) and the Galilee (northern Israel). The government offers enhanced financial incentives for citizens, and especially for olim, who choose to live in these areas. The goal is to promote population growth and economic development outside the crowded central region of Tel Aviv, Jerusalem, and the coastal strip.
For new olim, choosing to live in the periphery means access to benefits that can significantly exceed those available in central Israel. The trade-off is a different lifestyle: smaller cities, fewer English speakers, and in some cases fewer job opportunities in certain sectors. But for many olim, the financial incentives and quality of life make the periphery an attractive choice.
Enhanced Rental Assistance
While all olim receive rental assistance during their first years, those living in National Priority Areas receive substantially more. The enhanced rental assistance for periphery residents can reach approximately NIS 2,000 per month for up to 2 years, compared to NIS 1,000-1,500 in central areas. The exact amount depends on your family size and specific location.
This rental assistance is paid through the Absorption Ministry (Misrad HaKlita) and is separate from your סל קליטה (Sal Klita) payments. Combined with lower rents in the periphery, the effective housing cost can be remarkably low during your first two years. In cities like Beer Sheva or Karmiel, a decent apartment might rent for NIS 3,500-5,000/month, and with NIS 2,000/month in assistance, your out-of-pocket housing cost becomes very manageable.
Purchase Grants
Olim who purchase a home in a National Priority Area may be eligible for a government purchase grant of NIS 40,000 to NIS 60,000. This is a non-repayable grant, not a loan, and it comes in addition to the subsidized mortgage and Mas Rechisha discounts available to all olim.
The grant amount varies based on the specific area and current government allocations. Some municipalities in the Negev and Galilee offer additional local grants on top of the national program, potentially adding another NIS 10,000-20,000. Check with the local municipality and the Absorption Ministry for the current rates in your target city.
Enhanced Sal Klita
Olim who settle in National Priority Areas may receive enhanced Sal Klita payments. The Absorption Ministry periodically adjusts the formula, but historically, periphery residents have received a supplement of approximately 10-20% above the standard Sal Klita amounts. This applies to the full payment schedule over 6-12 months.
In practice, this means a single oleh might receive an additional NIS 3,000-5,000 over the full Sal Klita period, and a family proportionally more. The supplement is automatic based on your registered address. No separate application is needed beyond the standard Sal Klita registration.
Education Scholarships
Olim studying at universities or colleges in the periphery can access enhanced scholarship programs. The Absorption Ministry and the Council for Higher Education offer:
- Tuition assistance covering up to 50-100% of tuition at periphery institutions (Ben-Gurion University in Beer Sheva, Sapir College, Tel-Hai College, etc.)
- Living stipends for olim enrolled full-time in recognized programs
- Hebrew Ulpan programs in the periphery that include housing and a stipend
These benefits can make higher education in Israel essentially free for olim in the periphery, which is a significant advantage for younger olim or those planning a career change that requires Israeli credentials.
Tax Benefits: Section 11
Israeli tax law Section 11 provides tax credit points for residents of designated development areas. These are נקודות זיכוי (Nekudot Zikui) (credit points) that reduce your מס הכנסה (Mas Hachnasa) (income tax). Periphery residents typically receive an additional 0.25 to 0.5 credit points per month, which translates to approximately NIS 60-120 per month in reduced tax.
These credit points are in addition to the standard oleh credit points, meaning periphery olim benefit from both programs simultaneously. Over the 42-month oleh credit point period, the cumulative savings are meaningful: an additional NIS 2,500-5,000 in total.
Periphery vs. Central Israel: Benefits at a Glance
| Benefit | Central Israel | Periphery (Negev/Galilee) |
|---|---|---|
| Rental assistance | NIS 1,000-1,500/mo | Up to NIS 2,000/mo |
| Home purchase grant | Not available | NIS 40,000-60,000 |
| Sal Klita supplement | Standard amount | +10-20% above standard |
| Extra tax credit points | None | 0.25-0.5/mo (~NIS 60-120/mo) |
| Education scholarships | Standard oleh tuition aid | Up to 50-100% tuition covered |
Key Financial Advantage
When you combine the enhanced rental assistance, home purchase grants, Sal Klita supplement, and extra tax credits, periphery olim can receive tens of thousands of shekels more than their central Israel counterparts over the first 2-3 years. Add in the 20-40% lower cost of living, and the financial gap becomes even more significant.
Employment Programs
The government operates employment assistance programs in the periphery, including:
- Job placement services through the Employment Service offices in periphery cities, with dedicated olim advisors
- Professional retraining courses subsidized by the Absorption Ministry for olim seeking to enter fields with local demand
- Employer incentives for businesses in the periphery that hire new olim, making employers more receptive to hiring immigrants
- Entrepreneurship grants for olim starting businesses in National Priority Areas
The tech sector has been growing in Beer Sheva (anchored by the CyberSpark complex and Ben-Gurion University), making it increasingly viable for tech-sector olim to find employment in the south without sacrificing career growth.
Quality of Life Considerations
Beyond the financial incentives, periphery living offers distinct lifestyle advantages:
- Lower cost of living: Rent, groceries, and dining out are 20-40% cheaper than Tel Aviv
- More space: Apartments are larger and houses with gardens are affordable
- Less traffic: Commutes are shorter and less stressful
- Nature access: The Negev offers desert landscapes and the Galilee offers green hills, forests, and the Sea of Galilee
- Stronger community: Smaller communities often have tight-knit olim groups
The main trade-offs are fewer English-language services, smaller social scenes, and in some areas, fewer professional opportunities outside specific sectors. Most periphery cities are 60-90 minutes from Tel Aviv by car or train, which is manageable for occasional trips but not for daily commuting.
Which Cities Qualify?
Major cities and towns in National Priority Areas include:
- Negev (south): Beer Sheva, Arad, Dimona, Yerucham, Mitzpe Ramon, Ofakim, Sderot, Netivot
- Galilee (north): Kiryat Shmona, Karmiel, Tiberias, Safed (Tzfat), Akko, Nazareth Illit (Nof HaGalil), Ma'alot-Tarshiha
- Other periphery areas: Parts of the Arava, Jordan Valley communities, and certain Golan Heights communities
Verify Before You Move
The exact list of qualifying communities is updated periodically by the government. Before committing, verify that your target city or town is currently designated as a National Priority Area through the Absorption Ministry or the Prime Minister's Office website. Benefits can change if a community's designation is revised.
Getting Started
If you're considering the periphery, start by visiting potential cities before committing. Many Absorption Ministry offices in periphery cities have English-speaking staff and can arrange tours. Nefesh B'Nefesh also runs community tours of Negev and Galilee cities specifically for prospective olim. The financial incentives are real and substantial, but the decision should also factor in your career, community, and lifestyle priorities.