Israel has emerged as one of BYD's fastest-growing markets, entering the top 10 globally in H1 2025 with 10,597 units sold. A major driver? The country's aggressive green tax system that makes electric vehicles dramatically more affordable than their petrol equivalents. This guide explains how to maximize your savings.
Understanding Israel's Green Tax System
Israel's purchase tax (mas rechisha) for vehicles varies dramatically based on emissions. The system creates a powerful financial incentive for choosing electric:
| Vehicle Type | Purchase Tax Rate | Example Price Impact |
|---|---|---|
| High-Emission (250+ g/km CO2) | 83% | +83% to base price |
| Medium-Emission (150-250 g/km) | 50-70% | +50-70% to base price |
| Low-Emission (0-150 g/km) | 20-40% | +20-40% to base price |
| Electric Vehicles (0 g/km) | 10-20% | +10-20% to base price |
The Math in Action
A petrol SUV with a factory price of 150,000 ILS might face 83% tax = 124,500 ILS tax, for a total of 274,500 ILS. The same-segment BYD ATTO 3 at 150,000 ILS factory price with 15% tax = 22,500 ILS tax, for a total of 172,500 ILS. That's over 100,000 ILS difference!
Savings by BYD Model
BYD Dolphin
Compared to equivalent petrol hatchbacks (VW Golf, etc.)
BYD ATTO 3
Compared to equivalent petrol compact SUVs (Tiguan, RAV4, etc.)
BYD Seal
Compared to equivalent petrol sports sedans (BMW 3, Mercedes C, etc.)
BYD HAN
Compared to equivalent luxury sedans (BMW 5, Mercedes E, etc.)
Additional Benefits Beyond Purchase Tax
Reduced Annual Licensing Fee
Electric vehicles pay lower annual licensing fees (agra shnatit). While petrol vehicles can pay 2,000-4,000 ILS annually, EVs typically pay 1,000-1,500 ILS.
Fuel Cost Savings
With petrol prices around 7 ILS/liter and electricity at 0.5-0.6 ILS/kWh, electric driving costs approximately 70-80% less per kilometer than petrol.
Company Car Taxation
For company cars, the taxable benefit (shovi shimush rechev) is calculated differently for EVs, often resulting in lower income tax for employees with electric company vehicles.
Charging Infrastructure in Israel
Israel has rapidly expanded its public charging network:
- Sonol: DC fast chargers at fuel stations nationwide
- Paz: Growing network of rapid chargers
- Afcon: Urban and highway charging points
- Gnrgy: Subscription-based unlimited charging
- Building chargers: New construction required to include EV charging
BYD Warranty in Israel
- Vehicle warranty: 6 years / 150,000 km
- Battery warranty: 8 years / 160,000 km
- Roadside assistance: Included
Calculate Your Green Tax Savings
Visit a BYD dealer in Israel for a personalized price comparison and test drive.
Find Israeli Dealers