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When renting a residential property long-term, the primary expense is, of course, the rental fee. However, many foreign tenants and expatriates are often unaware of the additional costs that come with renting a property. Among these, utilities—particularly the Municipal Tax (Arnona)—can sometimes be a deal breaker.
In this article, we’ll explain how to estimate your utility costs. The calculations are based on average per person statistics derived from various sources, reflecting the country’s general averages. However, it’s important to note that these are estimates and may not reflect the exact costs in Jerusalem. For instance, Jerusalem tends to be cooler than Tel Aviv, meaning cooling costs may be lower, while its colder winters could lead to higher heating costs.
Additionally, there are fixed costs, such as the Municipal Tax (Arnona) and internet, as well as consumption-based costs, like electricity. The final costs depend on each tenant’s actual usage—some may work from home frequently, while others travel extensively for work.
While it's difficult to provide a precise estimate of utility costs for each individual or family, we aim to offer average cost estimates for each utility to help make your property rental experience more efficient and informed.
Here is a breakdown of
Municipal Tax (Arnona)
Arnona is the municipal tax in Israel, imposed by local authorities on residential and commercial properties. The tax is usually paid by the property occupant, whether owner or tenant, and is assessed annually, though payment can be made in installments. Each municipality sets its own rates within guidelines approved annually by the Ministries of Interior and Finance. These ministries define minimum and maximum allowed rates, while municipalities pass an annual Tax Order specifying rates per square meter by property type and zone.
For detailed information about Municipal Tax (Arnona) in Jerusalem, please refer to this article .
Special arrangements apply to diplomats. For more detailed information on this topic, please refer to this article .
Each property listed in our website provides you with the estimated Arnona cost based on the above criteria and usually it is an accurate estimation. The final and accurate Arnona amount can be provided upon request since each residential property has a fixed Arnona price that is imposed by the municipality every January of each year.
Building Maintenance Fees
Building Maintenance Fees—commonly known as Va’ad Bayit—are monthly charges levied on residents to cover the upkeep of shared areas and services in multi-unit buildings. These fees vary based on factors such as building size, amenities, and management structure.
Each property listed in our website provides you with the estimated Building Maintenance Fees cost based on the above criteria and usually it is an accurate estimation. The final and accurate amount can be provided upon request since each residential property has a fixed fees price.
For a detailed breakdown of the fees, please refer to this article .
Electricity Costs
Several local elements and factors contribute to electricity consumption patterns in Jerusalem: Climate Variations (Jerusalem's cooler winters and milder summers compared to coastal cities like Tel Aviv result in lower heating and cooling demands); Building Characteristics (Older buildings with less efficient insulation may lead to higher energy use for heating during colder months) and others.
While individual consumption varies, a general estimate for monthly electricity costs in Jerusalem per capita is as follows:
Average Monthly Bill: Approximately ₪150–₪180 for a person, depending on usage and building.
For a better understanding of electricity costs in Jerusalem, please refer to this article .
Heating Costs
Heating costs in Jerusalem can vary significantly depending on the type of heating system, the size of the property, and the quality of insulation. There are 3 types of heating methods (electricity, gas and diesel) and each has its advantages and disadvantages.
The average estimated cost for heating is ₪3 per square meter per month. This cost reflects the average annual expense, taking into account that heating is typically used for only 4-5 months each year. The average cost is provided regardless of whether the heating method is based on gas, electricity, or diesel.
For a better understanding of heating costs in Jerusalem, please refer to this article .
Water Costs
Water consumption varies based on factors such as socioeconomic status, household size, and lifestyle.
Per Capita Consumption: Residents of Jerusalem consume an average of 50 NIS per person per month.
For a better understanding of water costs in Jerusalem, please refer to this article .
Internet Costs
Internet service in Jerusalem is both accessible and competitively priced, offering a range of options to suit various needs and budgets.
For a standard plans up to a speed around 100 Mbps, prices typically range around ₪140, depending on the provider and package details.
For a High-Speed Plan, up to 1 Gbps, expect to pay around ₪170 per month.
For a better understanding of internet costs in Jerusalem, please refer to this article .