Bituach Leumi (ביטוח לאומי, National Insurance Institute, NII) obligations are tied to your status as an Israeli resident, not your Israeli citizenship. When you permanently leave Israel and cease to be a resident, your general NII obligation ends. The transition is not always automatic, though, and depends on several factors.
The basic rule
If you are recognized as a non-resident of Israel for National Insurance purposes (meaning you have permanently moved abroad and do not maintain a center of life in Israel) you are not obligated to pay ongoing NII contributions.
There are important exceptions.
If you still have Israeli income
If you earn income from Israeli sources after leaving (rental income from Israeli property, salary from an Israeli employer for remote work, or business income from Israeli clients) you continue to owe NII contributions on that Israeli-source income, even as a non-resident.
NII contribution rates for non-residents with Israeli income:
- Standard rate applies to the Israeli-source income
- Only income earned in Israel is subject to the contribution
Voluntary NII membership
You can voluntarily continue NII membership ("ביטוח מרצון") while abroad to preserve certain entitlements:
- Long-term care benefits (גמלת סיעוד) in case you return to Israel in old age
- Disability benefits in certain circumstances
- Survivors' benefits
Voluntary contributions are approximately 5% of the Israeli minimum wage per month. This is worth considering if you plan to return to Israel or spend significant time there in later life.
Health insurance (Bituach Briut)
Kupat Holim membership is separate from Bituach Leumi but linked. When you cease to be an Israeli resident and stop NII contributions, your Kupat Holim membership lapses.
- Within 2 years of emigration, you can rejoin Kupat Holim without a waiting period
- After 2 years, a waiting period (up to 6 months) may apply on return
- Some Kupat Holim plans offer special long-term abroad programs for diaspora members
Pension (קרן פנסיה)
Your accumulated Israeli pension fund remains yours regardless of where you live. You can:
- Leave it invested until retirement age
- In some circumstances, arrange early withdrawal (penalties apply)
- Transfer management to a power of attorney if needed from abroad
The pension is not subject to Bituach Leumi contributions once you stop contributing.
Steps when leaving
- Notify the NII of your departure using the formal notification process (Form 699 or equivalent)
- Notify your Kupat Holim of your emigration
- Decide on voluntary NII membership — weigh costs against future benefit entitlements
- Keep records of your departure date and your new country residency registration
- If you have Israeli rental income, continue to file annual Israeli tax returns and pay NII on that income
Common mistakes
- Continuing to pay NII contributions unnecessarily for years after emigrating (overpaying)
- Failing to notify NII, leading to arrears being assessed on your return to Israel
- Assuming Kupat Holim coverage continues abroad for more than 90 days
Get professional advice
NII rules are complex, and the interaction between NII, Israeli income tax, and your destination-country social security system requires professional guidance, especially if you have Israeli rental property or are self-employed with Israeli clients.
This content is for informational purposes only.