Paying for a Jerusalem hotel, without overpaying.

The Short Answer

Pay for the room in foreign currency — a foreign credit card or US dollars, on your foreign passport — and an Israeli hotel does not charge you VAT, which is currently 18%. Pay the same room in Israeli shekels and you can lose that exemption. For everything else around the city, carry a little cash in shekels from a bank ATM in town, and keep the rest on a card with no foreign-transaction fee.

That single habit — room in foreign currency, incidentals in shekels — is most of what there is to know. The detail below covers the rest, and JRM Hotels confirms the rate, the deposit terms, and the VAT treatment in writing before you ever put money down.

The Currency, and How to Pay

Israel's currency is the shekel (NIS, ₪). Jerusalem hotels routinely quote in both US dollars and shekels and accept foreign Visa and Mastercard; American Express is accepted less widely, so do not rely on it alone. The question that actually affects your bill is not whether dollars are taken — they are — but which currency the room is charged in, because that determines the VAT.

The Tourist VAT Exemption (the quiet 18%)

Foreign tourists are exempt from Israeli VAT on hotel accommodation and directly related services when the room is paid in foreign currency and you present a foreign passport. It is applied as a discount up front — the hotel simply does not add the tax to a qualifying booking — rather than a refund you chase afterward. A few practical notes:

• Pay the room in foreign currency. A foreign card or US dollars qualifies; paying the room in shekel cash can forfeit the exemption.
• It covers the room and breakfast, generally, but not necessarily every incidental — confirm what is and is not included for your booking.
• Have your passport at check-in. The hotel records it to apply the exemption.

Rules and the exact rate can change, so treat this as the shape of it and confirm the specifics for your stay — which is one of the things JRM checks in writing before you book.

Credit Cards and Foreign Fees

• Use a no-foreign-fee card. Many cards add roughly 1 to 3 percent on overseas charges; a card built for international travel avoids it.
• Decline "charge in your home currency." If a terminal offers to bill you in dollars rather than the price quoted, decline — dynamic currency conversion almost always costs more. (For the room, though, you do want the charge in foreign currency for the VAT exemption — your hotel handles that as the tourist rate, not as a terminal up-sell.)
• Tell your bank you are traveling, so a large hotel authorization from Israel is not flagged and frozen.

Deposits, Wires, and Cancellation

A standard room booking is usually held with a card, with free cancellation until a stated date and one or more nights non-refundable after it. Yom Tov and Pesach programs work differently: they are sold as full-board programs, often want a larger non-refundable deposit — sometimes by bank wire — on a payment schedule, and the good ones fill months in advance. Whichever applies to you, get the deposit amount, the schedule, and the cancellation terms in writing before you commit. See also pricing and fees for how rates and any concierge fee are structured.

Cash, ATMs, and Tipping

• Get shekels from a bank ATM in town, not the airport exchange booths, for a better rate. Carry a modest amount for taxis, small shops, and tzedakah.
• Tipping: restaurants are commonly 10 to 15 percent (check whether service is already added); a few shekels for housekeeping or a porter is appreciated but not obligatory.
• Mind Shabbos and Yom Tov. Settle anything that needs paying before candle-lighting; a shomer-Shabbos hotel will not run a card on Shabbos.

How You Pay When You Book Through JRM

For a standard single-hotel booking, you pay the hotel directly at its own rate. JRM is paid by the hotel and holds rate parity, so you never pay more than booking direct, and JRM does not handle your room payment. What JRM does is confirm the rate, the deposit and cancellation terms, and the VAT treatment in writing first. Only complex multi-family or Yom Tov trips carry a transparent concierge fee, agreed in writing before anything is booked. See how booking works.

Common Questions