Both Netanyahu and his third wife, Sara, have faced criticism for their perceived extravagant lifestyle at the taxpayer's expense. Controversies ranged from their gigantic ice cream consumption costs to garden furniture and private residence cleaning expenses. Sara, in particular, encountered legal issues: she was sued by a housekeeper in January 2010, another caretaker and a former bodyguard in March 2014, and faced a scandal over catered meals in 2015. In June 2019, she accepted a plea deal for misusing state funds.

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Netanyahu has three children. His middle son, Yair, has been embroiled in multiple controversies, including a 2015 recording from a Tel Aviv strip club and a slanderous Facebook post in November 2019, leading to legal consequences against him in February 2020.
Yair is also renowned as a social-media personality known for propagating conspiracy theories and disseminating fake news. In September 2017, Yair posted a meme on his Facebook page titled "The Food Chain". At the top of the meme, George Soros was depicted as the supreme ruler. Below him was an image of a lizard man, followed by an Illuminati figure, and at the bottom were opponents of his father. The meme's dissemination drew public criticism since its design was rooted in an anti-Semitic caricature. Roughly two days after its initial post, he took it down. In February 2023, Yair shared a conspiracy theory alleging that those protesting against the Levin reform were being paid to do so, suggesting that these demonstrations were orchestrated by the CIA. In March 2023, while on air with Gali Israel radio, Yair contended that left-wing protestors utilized tactics reminiscent of the Nazi SS and made an audacious claim that they had attempted to set the Knesset on fire, drawing parallels with the Reichstag fire. Furthermore, Yair propagated false information suggesting that parties opposing his father had "rigged" election outcomes. In March 2023, he fabricated a story claiming that "left-wing anarchists" were commissioned by Ehud Barak to assassinate his father.