Car rental in Eilat and Ramon Airport (ETM): prices, VAT and desert driving

A small car in Eilat costs about 120-180 ₪ per day in low season and 180-260 ₪ in peak periods, based on comparison-site prices for the coming season, usually without VAT.

• VAT-free zone: Eilat is a free trade zone where VAT does not apply to most purchases. Rentals picked up and returned in Eilat are therefore usually quoted without VAT, even for Israeli citizens who pay 18% elsewhere.
• One-way rentals: a car picked up in Eilat and returned in Tel Aviv or at Ben Gurion may be charged VAT for Israelis, and comes with a one-way fee. Eldan also adds a drop-off fee on Eilat one-way rentals of up to 2 days. Check your rental terms.
• Peak dates: Jewish holidays (Sukkot, Pesach, Hanukkah), Christmas and the July-August school holidays. Eilat is a domestic holiday destination, so Israeli demand drives prices.
• Currency: tourists are often quoted in US dollars. Foreign tourists with a B2 visa are VAT-exempt anywhere in Israel anyway.

Small cars are the cheapest category; an SUV is not necessary for the main roads, including the access road to Timna Park.

Ramon Airport is about 18 km north of Eilat, near Timna, and the drive into the city takes about 15-20 minutes on Route 90.

• Desks: comparison sites list Sixt and Budget at the airport, and other suppliers can deliver or meet you; your voucher states the exact location.
• Opening hours: DiscoverCars lists typical desk hours of around 09:00-17:00, with Budget closing at 13:00 on Fridays. Late-evening and Friday-afternoon arrivals need a supplier that confirms it will wait.
• After-hours returns: where offered, park in the designated return area, lock the car, put the keys in the drop box and take timestamped photos.
• Without a car: Egged buses connect the airport to Eilat's central bus station and hotel area, and a taxi to the city costs roughly 100 ₪.
• Flights: Ramon handles domestic flights from Tel Aviv and Haifa and some international routes. Check the latest schedule, which can change at short notice.

Alternatively, rent from a city branch in Eilat after a bus or taxi ride, which can be cheaper for a 1-2 day rental.

For a beach and hotel stay in Eilat, a car is optional; for Timna Park, the Arava, the Red Mountains or a road trip north, it is essential.

• In town: the hotel area, the North Beach promenade and the shopping malls are close together; taxis and buses cover them.
• The Red Sea coast: the Coral Beach Nature Reserve, the Underwater Observatory and the southern beaches are along Route 90 toward Taba. A car makes it easy to beach-hop and to park near quieter spots.
• Timna Park: about 25-30 km north of Eilat off Route 90, with the copper mines, Solomon's Pillars and the lake. Not served well by public transport.
• Arava and Red Canyon: desert hikes, viewpoints and kibbutz date farms north and west of Eilat.

Parking in the hotel area is a mix of paid lots and blue-and-white curbs (Pango or Cellopark). Many hotels offer parking, sometimes for a fee.

Route 90, the Arava Road, is the main link between Eilat and the rest of Israel: a long, mostly two-lane desert road with trucks, few towns and strong sun.

• Distance: about 4-5 hours to Tel Aviv or Jerusalem via Route 90 and the Dead Sea, or via Route 40 through Mitzpe Ramon and the Ramon Crater.
• Overtaking: stretches have been widened, but many sections remain single-lane in each direction. Be patient behind trucks and overtake only where allowed.
• Fuel and water: keep the tank above half. Carry several litres of water per person, even for a short trip; summer temperatures in the Arava often exceed 40 °C.
• Night driving: possible but tiring; animals and unlit stretches make daylight driving more comfortable.
• Speed cameras: fixed and mobile cameras are common on Route 90. Fines are sent to the rental company, which charges a handling fee on top.
• Route 12: a scenic but winding road along the Egyptian border west of Eilat. Check whether it is open before you take it; it has been closed at times for security reasons.

You cannot take an Israeli rental car into Egypt: rental terms forbid driving the car outside Israel, and doing so voids your insurance.

• What rental companies say: Eldan states its cars may not be driven outside the State of Israel. An international brand's Israeli terms ban crossing Israel's borders with the rental car.
• How to visit Sinai: drive to the Taba crossing on Route 90 south of Eilat, leave the car in the parking area on the Israeli side, and cross on foot. Check whether the car park is paid and how long you may leave the car.
• Security advisories: Israel and several foreign governments publish travel warnings for Sinai. Read the current advisory before you go.
• Jordan (Aqaba): the same rule applies at the Yitzhak Rabin crossing north of Eilat: cross on foot, not with the rental car.

A one-way rental between Eilat and Tel Aviv, Jerusalem or Ben Gurion is possible with national suppliers, but expect a one-way fee and check how VAT is applied.

• One-way fee: a fixed charge that varies by supplier and is shown in the comparison-site total; compare it before choosing a one-way rental over a round trip plus a domestic flight or bus.
• VAT: for Israelis, a one-way rental leaving the VAT-free zone may be invoiced with VAT. Tourists with a B2 visa are exempt anyway.
• Insurance: basic CDW and theft protection are included, with an excess of roughly 2,000-4,000 ₪. Tyres, glass and underbody are usually excluded, which matters on gravel access roads in the desert.
• Gravel roads: many desert trailheads are on unpaved tracks. Standard rental terms often exclude off-road damage; stay on paved roads unless your contract allows otherwise.

In Eilat you need the same documents as elsewhere in Israel, plus a car with strong air conditioning.

• Licence: a valid foreign licence is accepted for up to one year from your entry into Israel; bring an International Driving Permit if it is not in English. Rental companies usually require 1-2 years of licence history.
• Age: most suppliers set 21 as the practical minimum for small cars, with a young-driver surcharge under 24; some rent from 18 for small categories with a daily fee, and premium or 7-seat cars often require 25 or more. Check your rental terms.
• Credit card: a credit card in the main driver's name, not debit or prepaid, with enough limit for the deposit (often 1,000-3,000 ₪ or more).
• Insurance: basic CDW and theft protection are included or mandatory, with an excess of roughly 2,000-4,000 ₪. Tyres, glass, roof and underbody are usually excluded. Our Israel car rental insurance guide explains how to reduce the excess.
• VAT: foreign tourists on a B2 visa show the entry slip from passport control and pay no VAT on the rental; Israelis and dual nationals on an Israeli passport pay 18%.

• Which car: a small car is enough for Eilat, Timna and the main desert roads. Choose a compact or larger car for a family driving Route 90 to the centre, for comfort and luggage space.
• Air conditioning: test it before you leave the lot; summer temperatures make a weak air conditioner a real problem.

Compare airport and city offers, check opening hours against your flight time and confirm the VAT treatment before paying.

We recommend comparing on DiscoverCars, which lists the suppliers at Ramon Airport and in Eilat, with free cancellation up to 48 hours before pickup and a full coverage option. Check Economybookings for a second quote. These are affiliate links: we may earn a commission, and your price is unchanged.

Eilat checklist:
- Desk hours at Ramon versus your landing time, especially on Fridays.
- VAT shown as zero for a round-trip rental in Eilat.
- One-way fee if you return the car in the centre.
- Air conditioning working before you leave the lot.
- Water in the car for any desert drive.